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Zero Depreciation Two Wheeler Insurance

Simply put, zero depreciation cover is the add-on with which you get insulation against the depreciation amount that is deducted when you register an insurance claim.

The process of losing the value of a Two Wheeler in terms of money over a period of time due to factors such as age, wear and tear etc is commonly known as depreciation. At the time of filing a claim, people end up paying a large sum of the overall cost due to depreciation deduction. A zero depreciation cover comes to the rescue in situations like these. It provides a comprehensive coverage without factoring in for depreciation. For instance, if your bike was involved in an accident and eventually suffered damages due to the collision, your insurance provider will cover the entire cost of the losses incurred when you file a claim.

Key benefits of opting for zero depreciation cover

Most claim settlements seem meaningless to the customers as they observe deductions in actual loss amount assessed. A major deduction happens due to depreciation charged on parts requiring replacement after an accident. By opting for a ​zero depreciation bike insurance​ you can avoid this irritant. There are various other benefits of availing the zero depreciation add on cover:
  • You experience security and complete peace of mind after opting for the zero depreciation bike insurance​.
  • There is no worry or apprehension regarding the protection of your vehicle
  • Your out-of-pocket expenses come down to a bare minimum if you sign up for a zero depreciation cover.
  • Zero depreciation cover adds value to the basic cover. 
  • Depreciation is not taken into consideration while settling claims for insured parts of the vehicle.
  • Having understood the benefits of a zero dep cover, you must also bear in mind that zero depreciation is an additional benefit (add-on) that can be availed by paying an extra/higher premium. The premiums are calculated based on the vehicle’s model, its age and the location you’re based out of. The zero depreciation cover is generally not a part of the standard two wheeler insurance policy.​

Inclusions and Exclusions of a zero depreciation cover

Let’s breeze through the conditions that are included and excluded from a zero depreciation cover:
  • Zero depreciation cover is applicable on both new and renewal of two wheeler insurance policies. 
  • Offers coverage on all rubber, nylon and plastic parts and also on all fiberglass components. 
  • The standard depreciation rate in two wheeler policies vary between 0% to 40% but with a zero depreciation plan, you can claim the full amount. 
  • The zero depreciation add-on cover is designed for new bikes or bikes with a maximum age of up to 2 years. It is valid for up to 2 claims during the term of the policy or 1 claim annually. The clause regarding the limit on the number of claims can vary from company to company.
  • It is valid for select makes and models so, read your policy carefully.
  • Damages caused due to an uninsured peril and normal wear and tear are excluded from the zero depreciation policy.
  • Damages caused due to mechanical breakdown or to uninsured items such as bi-fuel kit, tyres and gas kits are excluded from the zero depreciation policy.
Policyholders must renew the zero depreciation cover annually to continue enjoying its benefits. This add-on cover is best suited for people with luxury bikes, new drivers, owners of a bike with expensive spare parts, people living in accident-prone areas etc.
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