We always do our best to protect things we love the most, and one of those things is the two-wheeler we buy. Hence, it becomes necessary to protect it from various risks.
A two-wheeler running on Indian streets is more prone to accidents and collisions due to narrow lanes and busy streets. In case your vehicle meets such a mishap, you might have to face huge expenses to repair and replace the damaged parts of the bike. This is why it is crucial to invest in comprehensive bike insurance instead of third-party insurance.
Third-party insurance will cover you only against third-party liabilities. But a comprehensive bike insurance plan will cover third-party liabilities as well as own damage. Special risks like damage due to natural calamities, loss of key, roadside assistance, etc. are covered by add-ons offered under a comprehensive bike insurance plan. One of the most popular add-ons is zero depreciation bike insurance.
What is zero depreciation bike insurance?
Before we understand zero depreciation bike insurance, let’s first understand what depreciation means. Depreciation is the decrease in the price of the object due to its age. Generally, a standard insurance plan will pay you a cover after deducting the depreciation amount. But in case of zero dep insurance for bike, you can receive the full amount without eliminating the depreciation cost.
What is included in zero depreciation bike insurance?
- The compensation amount of depreciable bike parts like rubber, nylon, fibreglass, and plastic.
- The zero dep insurance for bike cover is applicable only for valid bike insurance claims.
- In case you did not opt for zero dep insurance for bike while buying a policy, then you can add it during renewal.
Here are some advantages that you receive on opting for zero depreciation bike insurance.
You invest so much in a bike insurance plan, yet when you receive the settlement, it might not be sufficient as the depreciation cuts-off major amount. By opting for a zero dep insurance for bike, you can avoid this and get other advantages.
- You get peace of mind of getting full coverage amount in zero depreciation bike insurance.
- Zero depreciation bike insurance adds value to your coverage.
- It brings down your out-of-pocket expenses to a minimum.
- Depreciation value is not deducted while settling a claim.
To better understand a zero depreciation bike insurance policy, let’s look at a comparison between standard policy and zero dep insurance for bike.
- Claim settlement – In case of a standard bike insurance plan, the claim settlement is done after depreciating the value of the insured vehicle. However, zero depreciation bike insurance gives you full coverage without eliminating depreciation amount.
- Repair costs and other additional expenses – Typically, the cost of plastic fibres is paid by the insured person in case of a standard bike insurance plan. However, these expenses are covered by the insurer in zero depreciation bike insurance.
- Age of the bike – A zero dep insurance for bike is applicable only on vehicles that aren’t more than three years old. However, a standard policy doesn’t consider the age of the insured vehicle.