Zero Depreciation Cover for Bike Insurance

With the changing demands of the customers and rising competition among insurance providers, the policies now come with various add-ons and riders. One such popular add-on is zero depreciation cover, which proves to be a sensible investment for bike owners.

What is Zero Depreciation insurance cover?

The two-wheeler may be one of the useful items that an individual purchase in his/her life, but it’s a depreciating asset. This means the value of two-wheeler decreases with time. It mainly happens because the wear and tear of the vehicle is unavoidable. To cover the bike from accidents that might take place while using it, the individuals choose motorcycle insurance. But, in case of an accident, the individual receives compensation after the deduction of depreciation value. This is where the zero depreciation cover comes into the picture. The zero depreciation cover is an add-on that covers the complete cost of bike without factoring in for depreciation.

Eligibility to avail zero depreciation cover

In most of the motorcycle insurance policies, only new vehicles are eligible for zero depreciation add-on. If the two-wheeler is older than a time limit mentioned by the insurer, the benefit is not applicable. It is also important to note that there is a limit on the total number of claims per year that come with the policy. The insurers also put a condition that the two-wheeler needs to be repaired in network garages only to enjoy the benefits of zero depreciation cover. A lot of companies do not offer this benefit if two wheeler insurance policy is lost or is completely damaged.

As the eligibility and conditions of this add-on vary from policy to policy, it is crucial to read the terms and conditions thoroughly before paying for the same. One can also confirm the doubts through customer care to avoid any surprises during the time of reimbursement.

What is not covered in a Zero-Depreciation Policy?

It is important to have the note of exclusions related to zero depreciation policies, which include:

  • Wear and tear of an insured two-wheeler
  • Damages occurring due to mechanical issues
  • Damages to the accessories that are not insured, including tyres, gas kits, etc.
  • Damages caused due to uninsured risk

The zero depreciation insurance policies are valid for one year in most of the cases, but the customers enjoy the benefits for a longer period by reviewing it on an annual basis.


Additional Reading:- Why you should buy Two wheeler insurance policy?


Features and benefits of zero depreciation cover

There are numerous features and benefits of zero depreciation cover that makes it worth purchasing:

  • The basic benefit is that the depreciation will not be factored while getting a reimbursement.
  • Most of the policies cover damage of nylon, rubber, plastic and fiberglass parts of a vehicle.
  • The two-wheelers don’t have to pay anything from their pocket while getting their bike fixed after an accident.
  • The further investment on the bike becomes nil with this add-on.

Last, but not the least, the peace of mind offered by it is invaluable.

Conclusion

If you don’t mind a higher premium, then zero depreciation policy is a great option for you. It, definitely offers peace of mind and protection from damages that may occur at later stages. On the other hand, a regular motorbike insurance is also a fine idea if you don’t want to pay anything extra than the regular premium levied by the insurer. A comprehensive insurance policy is another option that comes with multiple benefits and lower premium. In any case, you must compare the policies related to motorbike insurance online through portals like www.comparepolicy.com.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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