All About Zero Depreciation Bike Insurance

Posted on Mar, 2020
All About Zero Depreciation Bike Insurance
Bike insurance protects your two-wheeler against various roadside scenarios. Incidents like road accidents can lead to a great deal of damage to your vehicle. At such a time, you can encash your insurance policy and file an insurance claim. The insurer reimburses you after deliberating the damages and the current market value of your vehicle. One term used during the process of reimbursing a bike insurance claim is zero depreciation cover. But what is the meaning of zero depreciation bike insurance? Let’s find out.

What is zero depreciation bike insurance?

Every motorcycle goes through depreciation, i.e. the value of the bike or scooter reduces over time. Factors such as wear and tear due to frequent use, contribute to the devaluation of vehicles. Thus, when you file an insurance claim, the insurer checks your vehicle’s current market value and then pays you the compensation. However, if you purchase the zero depreciation cover, the insurer does not factor depreciation on your two-wheeler’s parts while settling your insurance claim. As such, zero depreciation bike insurance is a facility that enables you to get a better claim price for the damages incurred by your vehicle.

Inclusions and exclusions in zero depreciation cover for two-wheeler

  • The inclusions

    The zero dep insurance for bike typically covers you against the compensation for the major depreciable parts of the two-wheeler like rubber, fibreglass, nylon, and plastic parts. A few insurance providers also provide coverage for partial damages endured by the motorcycle’s tyres and battery, without factoring the depreciating value of those parts.

  • The exclusions

    The bike insurance zero dep cover does not protect the policyholder against any uninsured dangers. Damages caused due to routine use of the vehicle, leading to its wear and tear are not included. The insurance provider also does not offer zero depreciation coverage resulting from mechanical faults. Also, you cannot file zero depreciation cover in the event of total damage or loss of your two-wheeler. Uninsured bike items including gas and bi-fuel kits are also excluded from this add-on rider.

Things to remember about purchasing zero depreciation cover for your two-wheelers

  • Zero depreciation is not part of your general bike insurance policy. The cover is not available with third party limited liability policies. You need to purchase it separately as an additional rider with your comprehensive bike insurance policy.
  • You can purchase the bike insurance zero depreciation cover when you purchase your comprehensive policy or when you renew it for the next term, but not when a policy is already underway.

Zero depreciation bike insurance is an additional rider that can genuinely enhance the coverage you get with your bike insurance policy. However, since the cover adds a great deal of value to your insurance policy, it comes with a higher price tag, in the way of the premium charged for this rider. Having said that, it is still a recommended investment along with your bike insurance.