You must have two-wheeler insurance to be able to ride your bike on Indian roads. While the law mandates third-party insurance for all bike owners, you must know that it is rarely enough. Third-party two-wheeler insurance covers third-party liabilities only. It does not cover own damage. For 360° protection for your bike, buy comprehensive insurance and enhance coverage with relevant add-ons.
Buy motor insurance add-ons to further strengthen your two-wheeler insurance. Popular add-ons include zero depreciation cover, roadside assistance, return to invoice, and consumables add-on. These covers come at an additional cost and increase the premium amount. Today, we will discuss the zero depreciation bike insurance add-on and its benefits.
What is zero depreciation cover?
Zero depreciation bike insurance add-on allows coverage for the usual depreciation deduction that is usually not covered in comprehensive two-wheeler insurance. This cover is also known as nil depreciation or bumper-to-bumper cover.
Depreciation is the reduction in the value of a vehicle due to its usage and consequent wear and tear. When you raise a claim for own damage, a depreciation amount is factored in and is reduced from the compensation amount. With a zero-depreciation bike insurance add-on, there will be no deduction in the claim settlement amount citing depreciation.
Why do you need zero depreciation bike insurance coverage?
Here are some reasons why you must opt for the zero depreciation add-on when buying two-wheeler insurance:
- Better claim settlement: When you raise a claim, your two-wheeler insurance provider first runs a depreciation check and calculates the depreciation costs of your bike’s parts. With a zero depreciation bike insurance add-on, your claim settlement becomes easier as the depreciation costs are already taken care of by the zero depreciation cover.
- Higher coverage: Zero depreciation bike insurance covers your losses due to depreciation. When you buy this cover along with two-wheeler insurance, you avoid deductions due to depreciation in the claim settlement amount.
- No deduction on repair cost: With a zero depreciation bike insurance add-on, there will not be any associated wear and tear costs if you were to repair your bike’s body parts. The repair and replacement of parts will be done without deducting any depreciation charges.
- Better compensation: When you buy motor insurance, with a zero-depreciation add-on, you are basically expanding your sum assured. By opting for zero depreciation, you are covering a major cost which is usually not covered by a bike insurance policy.
- Reduced additional expenditures: Since while claiming settlement, the depreciation charges are not excluded from the compensation amount anymore, your out-of-pocket expenses are reduced.
Who should buy a zero depreciation add-on?
Now, that you know why you should get a zero depreciation bike insurance add-on when you buy motor insurance, it is imperative to understand who needs it the most. Zero depreciation bike insurance rider is useful for:
- New bike owners: If you have bought a bike recently or are planning to buy one, you should buy a nil depreciation cover along with comprehensive two-wheeler insurance. This way you can get the maximum coverage in the event of an accident.
- Luxury bike owners: Usually the repair costs of luxury bikes are quite high. And, equally high are the depreciation costs. You can stay protected against this potential expense with a zero-depreciation bike insurance add-on.
- Two-wheelers with expensive body parts: Bike owners who have expensive bike parts must buy a nil depreciation along with two-wheeler insurance. This would help them get higher coverage and reduce out-of-pocket expenses.
- Regular bike users: Those who use their bikes regularly are more exposed to traffic and on-road mishaps. Furthermore, their bikes undergo relatively higher wear and tear. Subsequently, the depreciation cost deductible will also be significant in case of their claim settlement. To stay protected against this expense, regular bike users should invest in the zero-depreciation add-on.
Inclusions of zero depreciation bike insurance add-on
- Depreciable body parts such as tyres, and parts made of plastic, nylon etc.
- Repair and replacement costs
- Sometimes the add-on also covers the cost of the battery
Exclusions of zero depreciation bike insurance add-on
- Damages arising out of breakdowns and mechanical faults
- Complete damage
It is best to buy zero depreciation bike insurance add-on along with two-wheeler insurance. This would not only expand the coverage of your two-wheeler insurance but also save you significant money at the time of claim settlement.