Bike insurance has many important clauses and as a policyholder, you must be aware of these. One of them is the element of depreciation. Depreciation is nothing but a reduction in value that happens over a period of time. With time, the bike and its parts go through natural wear and tear. This causes depreciation. When you make a bike insurance claim, the element of depreciation kicks in and you are given a lower claim amount. This is why you should consider getting a zero depreciation two-wheeler insurance cover. This is an Add-on cover that you can purchase along with the comprehensive bike insurance plan. When you have a zero depreciation cover in place, the insurance provider pays out the entire claim amount, irrespective of the age and depreciated value of the vehicle.
Disclaimer: The above mentioned prices are for a 2 year old Hero Honda Karizma R 223 CC, registered in Navi Mumbai & previous policy has expired.
As soon as the bike leaves the showroom, it starts to depreciate in value. The rate of depreciation consistently rises. The motor insurance companies have a fixed rate for depreciation, and the claim amount is settled on that basis.
If however, you opt for zero depreciation bike insurance, you can get around this issue. The bike’s value will be considered to be that of a brand new bike, even when it is a few months or a few years old.
The add-on cover is available at an added cost, but attaching it to your bike plan proves to be very beneficial and profitable in the long run.
Now that you have a better idea of what does zero depreciation bike insurance means take a look at the rates at which depreciation is calculated in bike insurance. Also, take a look at the savings you get to make when you have the zero depreciation rider attached to your two-wheeler insurance plan:
You can see the difference between comprehensive and zero depreciation insurance for bikes from the above-mentioned tables and also see how effectively the rider helps.
You can see the difference between comprehensive and zero depreciation insurance for bikes from the above-mentioned tables and also see how effectively the rider helps.
As you can clearly see from the tables given above, adding a nil depreciation cover to your comprehensive bike insurance plan makes it beneficial. If you still have doubts about it, take a look at the list of advantages and you will be able to know whether or not this rider is ideal for you:
You already know what is zero depreciation bike insurance and how it proves to be handy. The scope of your cover increases as you stand to get the claim amount without any deduction. This makes it financially suitable for you. Also, you get to service all the essential parts of the bike without having to worry about spending money from your own pocket.
</li>Since the rate of depreciation is not applicable when the claim is calculated, you stand to get a much higher amount than the claim settlement value. This helps to keep your savings intact and also to get your bike serviced in a better and more efficient manner.
</li>Keeping your vehicle safe at all times is a huge priority. Along with that, ensuring you don't spend a lot of money on repairs is essential too. When you have a zero depreciation rider in place, you get a lot of mental peace knowing that you can get your bike properly repaired as and when needed without spending a lot of your own money. This is a huge benefit and a reason why you should opt for the nil depreciation add-on bike insurance cover.
</li></ul>Keeping these points in mind, you can see just how beneficial a rider of zero depreciation insurance for the bike is.
If you have recently started riding
New riders make more mistakes (leading to frequent bumps and crashes) as compared to experienced bike riders. So if you are someone who has only recently started riding two-wheelers, a zero depreciation cover would be of great use to you.
If you bought a new bike
New bikes are very valuable and so you need to cover your new bike with the greatest amount of protection. Getting a good zero depreciation cover helps you out at such a time and you are able to keep your bike in mint condition for a longer time.
If you reside in a risky area
Some residential areas are congested or prone to accidents. If you happen to reside in such a place, getting a zero depreciation cover would surely be of great use to you.
If you own an expensive vehicle
And last but certainly not least, you should most definitely get the zero depreciation rider if you own an expensive bike. Repairing an expensive bike costs a lot of money and you would definitely want to get the entire bill amount as your claim amount each time!
Evaluate the points mentioned above and see whether or not you would benefit from a zero depreciation bike insurance rider and then make the purchase accordingly.
As you can see, the process is very simple and you can get the cover in a hassle-free manner.
The zero depreciation cover usually is charged at about 15% of the regular bike insurance premium. This makes it slightly expensive, but the covers you get in return are very wholesome and so you end up making a financial gain in the long run.
Before you invest insurance a zero depreciation rider along with the comprehensive bile policy, here are some important points for you to understand:
Evaluate and assess these pointers and then see if the option is feasible for you.
There are many advantages you get when you opt for a zero depreciation bike insurance cover. However, you should also keep the exclusions and conditions in mind when choosing the cover. Consider all the aforementioned factors and then buy the zero depreciation bike insurance rider and keep your bike, as well as your finances, wholesomely protected.
No, the zero depreciation rider is an add-on bike insurance cover and it is optional. You can either get it or leave it out, as per your requirements.
If you did not add the rider when you originally got your bike insurance plan, you can still attach it later, namely when you are renewing the coverage.
Most insurance providers do not offer zero depreciation cover if your bike is over five years old. Some insurers limit it to three years. Read the terms and conditions carefully to know the exact clauses and eligibility.
No, the cover won't be applicable if the bike is stolen. Then, the claim you get will be calculated after deducting the depreciation amount.
Yes, you can easily attach the rider online when you buy or renew the bike insurance plan. Alternatively, you can also speak to your insurance agent and get the rider offline.
