This is a human nature that Everyone wants to protect the things they love. Especially if it’s your two wheeler and especially if it’s been a while since you bought it! Imagine if there was something that could ensure that the things dearest to us always stay like new. So what is zero depreciation bike insurance?
Of course, magic doesn’t exist, but in comprehensive bike insurance, we have something called zero depreciation cover, and something like that is aimed at. To keep your bike as new as it was when it just got it. Think of it as your bike’s own anti-aging cream. did not get? Wait, we’ll explain.
Zero depreciation bike insurance
Simply put, zero depreciation cover is the add-on with which you get insulation against the depreciation amount deducted while filing an insurance claim.
The process of losing the value of a two wheeler in terms of money due to factors like age, wear and tear etc. is commonly known as depreciation. At the time of filing a claim, people pay a substantial amount of the total cost on account of depreciation deduction. In such situations a zero depreciation cover comes to the rescue. It provides a comprehensive coverage without factoring for depreciation. For example, if your bike was involved in an accident and was eventually damaged due to a collision, your insurance provider will cover the full cost of the damage caused when you file a claim.
What is zero depreciation bike insurance cover?
A zero value two wheeler insurance, also known as zero depreciation and bumper-to-bumper cover, is a popular two wheeler insurance add-on cover. One can opt for a comprehensive as well as a standalone own-damage two-wheeler insurance policy. It offers 100% depreciation coverage for all parts of your two wheeler except tyres, tubes and battery which is covered at 50%. Most of the insurance companies allow 2 zero depreciation claims during the tenure of the policy, however, there are some exceptions like IFFCO Tokio General Insurance, Royal Sundaram General Insurance Company, New India Assurance Company which allow unlimited number of zero depreciation claims during the tenure give. a policy.
Zero depreciation bike insurance cover should ideally be chosen by:
New two wheeler owner
People living in accident prone areas
People who have a luxury two-wheeler which has expensive parts.
Key benefits of choosing zero depreciation cover
Among all most of the claim settlements are meaningless to the customers as they calculate the deduction in the actual loss amount. One of the biggest deduction is due to the depreciation charged on parts requiring replacement after an accident. You can avoid this hassle by opting for zero depreciation bike insurance. There are several other benefits of availing zero depreciation add on cover:
You experience safety and complete peace of mind after choosing zero depreciation bike insurance.
No worries or apprehensions about the safety of your vehicle
If you sign up for zero depreciation cover then your out-of-pocket expenses become minimal.
Zero depreciation cover adds value to the original cover.
Depreciation is not taken into account while settling the claims for the insured parts of the vehicle.
After understanding the benefits of zero dip cover, you should also note that zero depreciation is an add-on that can be availed by paying extra/higher premium. The premium is calculated on the basis of the model of the vehicle, its age and the place from where you reside. Zero depreciation cover is usually not a part of a standard two wheeler insurance policy.
Depreciation in Two Wheeler Vehicles
|Age of Vehicle||% of Depreciation|
|Not Exceeding 6 months||5%|
|Exceeding 6 months but not exceeding 1 year||15%|
|Exceeding 1 year but not exceeding 2 years||20%|
|Exceeding 2 years but not exceeding 3 years||30%|
|Exceeding 3 years but not exceeding 4 years||40%|
|Exceeding 4 years but not exceeding 5 years||50%|
Also check – NCB in bike insurance.
FAQ about what is zero depreciation bike insurance
Is zero depreciation required?
Having zero depreciation addon means that you are not required to pay the cost of depreciation during your car insurance claims. … While you pay a slightly higher premium, your long-term savings are greater because you are not required to pay your car’s depreciation costs during claims.
Are tires covered under zero depreciation insurance?
A zero depreciation cover does not protect the car from damage to its engine through oil leakage or water ingress. Standard wear and tear for cars and car parts such as clutch plates, tyres, bearings, etc. are not covered under zero depreciation insurance.
What is the difference between own loss and zero depreciation?
Zero depreciation is also known as zero depreciation or bumper to bumper cover which excludes the ‘depreciation’ factor from the coverage. This basically means that if your car or bike is damaged after a collision, no depreciation is deducted from the wear and tear coverage of any part of your vehicle.
Can I get zero depreciation car insurance after 5 years?
Best suited for – Zero depreciation cover is applicable only on new cars up to five years old. If your car is more than five years old, you should consult your insurer for appropriate action. For cars older than 5 years, zero-dip is offered, but only from offline sources.
Why does zero depreciation insurance make sense?
When you pay a higher premium amount for the cover, you are indirectly paying the depreciation cost of the vehicle. … Zero Depreciated Cover gives you peace of mind and protects you from future setbacks when claims are settled by insurance companies.
Thats all about what is zero depreciation bike insurance, Thanks for reading.