WHY ZERO DEPRECIATION COVER IS IMPORTANT FOR BIKE INSURANCE?

The value of your beloved bike depreciates with time. Depreciation means a reduction in the value of your vehicle as well as its parts owing to periodic wear and tear. This is why a simple bike insurance policy does not promise complete protection.

The cost of repair or replacement of parts that are depreciable, including parts made of rubber, plastic, metal, etc., are not fully covered under the comprehensive policy, and you may have to pay a sizeable amount from your own pocket.

To prevent this from happening and to ensure you do not pay any extra money on your own, you should purchase zero depreciation cover along with your bike insurance policy.

Keep on reading to understand what zero depreciation in bike insurance means, why zero depreciation cover is important, and what inclusions and exclusions of this cover are.

WHAT IS ZERO DEPRECIATION IN BIKE INSURANCE?

Depreciation signifies the reduction in the value of an asset due to wear and tear; moreover, with passing time, the depreciation of a vehicle increases. This is why insurance companies reduce this value while settling a claim. This is where zero depreciation bike insurance cover comes to the rescue.

Zero depreciation bike insurance cover is an add-on through which you get insulation against the depreciation amount, which is deducted when you register an insurance claim. For example, if your bike was involved in an accident and suffered damages, your insurance provider will cover the entire cost of the losses incurred when you file a claim.

IMPORTANCE OF ZERO DEPRECIATION BIKE INSURANCE COVER

There are various benefits of availing of the zero depreciation add-on cover.

● High Coverage: A zero depreciation add-on increases coverage and enhances your savings by reducing out-of-pocket expenses to a bare minimum.

● No Deductible for Depreciation: You will receive the entire claim amount, and the insurer will not deduct the depreciating value of the bike or its parts.

● Increased Compensation: You get a high amount of claim as your compensation is not impacted by the depreciation value of the bike or any of its parts.

● Provides Peace of Mind: Zero depreciation two-wheeler insurance ensures that you get full compensation. This reduces the stress of mishaps as there is no worry regarding the protection of the vehicle in case of damage or injury.

INCLUSIONS & EXCLUSIONS OF ZERO DEPRECIATION BIKE INSURANCE COVER

Understanding what the zero depreciation cover includes and excludes is important. The list of inclusions and exclusions is given below.

1. INCLUSIONS

● Cost of replacing plastic, rubber, nylon, and fibreglass components/parts.

● Coverage for damages caused by natural as well as man-made calamities, like earthquakes, floods, vandalism, theft, inundation, etc.

● Coverage of repair costs without factoring in depreciation, except for the voluntary deductibles.

2. EXCLUSIONS

● Damages caused by total loss (damages beyond repair).

● Normal wear and tear of the bike.

● Depreciation of tyres and tubes.

● Electrical and mechanical damages.

● Damages that are caused due to risks not covered in the primary policy. For example, driving under the influence of drugs or alcohol and driving without a license.

THINGS TO KEEP IN MIND BEFORE BUYING A ZERO DEPRECIATION COVER

Below is a list of some crucial points that should be kept in mind before purchasing bike insurance.

● This add-on cover is only available for bikes that are not more than two years old.

● Zero depreciation two-wheeler insurance add-on is offered only twice a year. The clause regarding the limit on the number of claims can vary from company to company.

● Any compulsory deductibles are not discounted or deducted by the zero depreciation add-on.

● It is valid for select makes and models, so read your policy carefully.

● Zero depreciation cover is applicable on both new and renewal of two-wheeler insurance policies.

CONCLUSION

Your bike is your prized possession, and providing your vehicle with the best security coverage will also give you peace of mind. Your conventional two-wheeler insurance policy will become more powerful with the zero depreciation bike insurance cover.

This add-on ensures a smooth and seamless claim process without hurting your pocket. As a policyholder, you must renew the zero depreciation cover annually to continue enjoying its benefits.