A Walkthrough Of Zero Depreciation Cover For Two-Wheeler
Zero depreciation is an add-on cover or a policy that you can get with bike insurance. It protects you from the amount of depreciation that is taken off when you file an insurance claim. Depreciation is the process by which a bike loses money value over time because of things like age, wear and tear, etc. Due to depreciation deduction, most people end up paying a big chunk of the total cost when they file a claim. *
For situations like this, two-wheeler insurance has a ‘zero depreciation cover.’ It gives you all the benefits of your coverage without taking depreciation into account. For example, if your bike was in an accident and got damaged, your insurance company will pay for all of the costs of replacing the parts when you file a claim. *
Why you should choose zero depreciation cover
Many customers say that general insurance claim settlements don’t mean anything because the actual loss amount is reduced. A big reason for these deductions in general insurance is that parts that need to be replaced after an accident are given a depreciation charge. You can avoid this by getting a bike insurance add-on that doesn’t cover depreciation. *
The zero depreciation add-on cover also has a number of other advantages *:
- The zero depreciation cover takes away some of the financial stress caused by repairs
- If you go for a zero depreciation cover, your costs will go down
- Zero depreciation cover makes the basic cover more valuable in the long run
- When figuring out an insurance claim for covered parts of a vehicle, depreciation is not taken into account
Let’s go over the conditions that a zero depreciation cover does and does not cover:
It works for both people who want to buy a new policy and those who want to renew their two-wheeler insurance. It goes over all parts made of rubber, nylon, plastic, and fibreglass.
With a zero depreciation plan, you can claim the full amount. With a standard two-wheeler insurance policy, the standard depreciation rate can vary from a certain range set by the insurance company based on how much time has passed. *
The zero depreciation add-on cover is made for bikes that are less than 2 years old or are brand new. It can be used for up to two claims during the policy’s term or one claim per year. This limit on how many claims you can make can be different from one company to the next. *
Also, check for zero depreciation add-on cover when you renew your motorcycle insurance. Read your policy carefully because some makes and models come with depreciation coverage. *
The zero depreciation policy doesn’t cover damage caused by normal wear and tear. The zero depreciation policy doesn’t cover damage caused by mechanical failure or things that aren’t insured, like bi-fuel kits, tyres, or gas kits. *
Note that zero depreciation cover must be renewed every year if you want to keep getting the benefits of it. It’s best for people with expensive bikes, new drivers, bike owners with expensive spare parts, people who live in areas where accidents often happen, etc. *
It’s vital one gets the zero depreciation cover add-on as part of the comprehensive coverage because, in the long run, this add-on will save you a lot of money in case you get into an accident and expensive parts of your bike get damaged. In such a situation, third-party bike insurance will only cover the cost of the damage caused to the other’s vehicle. You will be left to handle all the costs of repair yourself, and it can put a big dent in your finances. * ##
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
