Zero Depreciation Bike Insurance
Depreciation is the decrease in an asset's value over time caused due to wear and tear or aging. For bike insurance, this means your bike's value drops as it ages and is used regularly. As a result, the bike owner has to cover the cost of this depreciation.
Zero Depreciation insurance is an add-on that allows you to claim your bike insurance without factoring in depreciation. This means you receive a higher claim amount since you don't have to pay for the depreciation costs.
Highlights of Zero Depreciation Bike Insurance in India
Comparison of Bike Depreciation Insurance with and without Zero Depreciation Cover
Bike Age (in years) |
With zero dep. add-on |
Without zero dep. add-on |
|---|---|---|
Below six months |
Zero percent
|
Nil
|
Within six months to one year |
Zero percent
|
Five percent
|
One to two years |
Zero percent
|
Ten percent
|
Two to three years |
Zero percent
|
Fifteen percent
|
Three to four years |
Zero percent
|
Twenty-five percent
|
Four to five years |
Zero percent
|
Thirty-five percent
|
Five to ten years |
Zero percent
|
Forty percent
|
Above ten years |
Zero percent
|
Fifty percent
|
Depreciation Rate Applicable on Bike Parts
Bike Parts |
With zero dep. add-on |
Without zero dep. add-on |
|---|---|---|
Nylon/Rubber/Plastic |
Zero percent
|
Fifty percent
|
Fiber-glass |
Zero percent
|
Thirty percent
|
Glass |
Zero percent
|
Nil
|
Sahi Advice,
Sahi Insurance
If you have any questions on how to choose the best insurance plan, you can connect with our IRDAI certified insurance advisors.
Paybima is the digital platform of Mahindra Insurance Brokers Ltd
Experience
Strong Team
Advisors
Zero Depreciation Bike Insurance in India - Everything You Need to Know
Key Benefits and Features of Zero Depreciation Bike Insurance in India
This add-on benefits both new and experienced drivers by providing extra protection against financial crises from unexpected incidents on the road.
Repairs are covered without considering your bike's depreciated value, giving you a higher reimbursement amount.
This add-on prevents you from paying depreciation charges, as your insurer settles claims without accounting for depreciation.
While the premium is higher, you receive greater compensation when making a claim. Insurers that allow unlimited zero depreciation claims help you save money every time you file a claim.
Extra protection from the Zero Depreciation add-on offers greater peace of mind.
Zero Depreciation Bike Insurance - Inclusions and Exclusion
Zero Depreciation Bike Insurance in India - Inclusions
Below are the inclusions of a bike insurance policy with zero depreciation add-on cover:
Covers damage for rubber, fiberglass, plastic, and nylon parts of your bike.
Allows multiple claims (two or more) per policy year, depending on your insurer's limit.
Provides zero depreciation compensation for bike repairs only at the time of claim settlement.
Can be purchased during the initial bike insurance purchase or at renewal.
Zero Depreciation Bike Insurance in India – Exclusions
Under the below conditions, you cannot avail of the benefits of zero depreciation add-on cover for your two-wheeler:
Damage or loss to uninsured parts.
Regular wear and tear of the bike.
Damage caused by mechanical breakdown.
Damage to uninsured parts like tyres, tubes, fuel, and gas kits (some insurers may cover tyres, tubes, and batteries at 50% without depreciation).
Usually available for one year and needs annual renewal.
Not available with third-party bike insurance.
Can be added to comprehensive bike insurance plans during purchase or renewal.
Things to consider While Selecting the best Zero Depreciation Bike Insurance add-on in India
Here are some points to remember while selecting the Zero Depreciation add-on Cover:
Available for new bikes up to two years old.
Does not eliminate obligatory deductibles.
Most insurers allow two claims per year with this add-on.
Zero depreciation and bumper-to-bumper cover are almost similar.
Many policyholders confuse comprehensive insurance with zero depreciation add-ons. It's important to note that zero depreciation is an add-on, while comprehensive bike insurance is an all-inclusive policy. You can add zero depreciation to a comprehensive bike insurance plan.
Ask Anything as We Have Answers to Everything in Insurance
Zero depreciation cover in bike insurance is an add-on that protects against depreciation charges. Normally, depreciation reduces the claim amount you receive, but with this add-on, you are exempt from these charges.
Selecting the best zero depreciation insurance depends on your needs and budget. Most providers allow up to 2 claims, but some offer unlimited claims, including:
- IFFCO Tokio General Insurance
- Royal Sundaram General Insurance and
- The New India Assurance
No, you cannot convert third-party bike insurance into zero depreciation insurance. Zero depreciation is an add-on available only with comprehensive or standalone own-damage bike insurance plans.
Zero depreciation cover protects against depreciation expenses, reimbursing repair and replacement costs for depreciated parts during claim settlement. It covers 100% of depreciation costs for all parts except for tyres, tubes, and batteries, which are covered at 50%.
Yes, it is advisable to buy zero depreciation bike insurance. It protects against depreciation charges, allowing for higher claim amounts for a small extra premium.
Zero depreciation insurance is not compulsory like third-party insurance, but it is recommended as it enhances your claim amount by covering depreciation charges.
Zero depreciation is an add-on to a standalone own-damage or comprehensive policy, not a standalone policy. Comprehensive insurance is a complete policy that can include the zero depreciation add-on.
Zero depreciation cover does not fully cover batteries, tyres, and tubes (only at 50%), nor does it cover damages from mechanical failures or uninsured parts like gas and bi-fuel kits.
