Two-wheeler insurance cover protects your bike by compensating you in case of partial or total damage. However, the amount of protection and the extent of the coverage completely depends on the type of policy chosen by a buyer.
In a third-party policy, only the property or person of the third-party is covered. This comes as a mandatory requirement to all bike owners in India. The second type of cover is a comprehensive two wheeler insurance policy and it includes compensation for own damage as well as third-party damage.
Several factors are considered to calculate the premium amount, such as:
- The model of bike
- The modifications and specifications
- The type of applied motor insurance
- The age of the bike
In simple words, a two-wheeler loses its value as it ages due to things like wear and tear, etc. This process is known as depreciation. When filing claims, you don’t receive the complete value of your bike due to depreciation. Therefore, people lack interest in filing insurance claims even on valid grounds.
A comprehensive policy comes with a unique option of add-ons. It is an extended cover applied to strengthen the existing basic cover and provide a sense of financial security. You can even opt for these while purchasing motor insurance online. One such additional cover would be the Zero Depreciation add-on. If you opt for this cover, the depreciation amount won’t be considered, i.e. there will be no deduction and you will receive the original value of your bike.
Advantages of a Zero Depreciation cover
- A Zero Depreciation cover enhances and adds more value to your existing comprehensive policy.
- It gives an assured sense of security and mental satisfaction knowing that your two-wheeler is secured.
- No out-of-pocket expenses.
- Makes the basic insurance policy stronger and more efficient.
- When settling claims for the vehicle parts that are insured, the insurer does not consider depreciation.
More insight on Zero Depreciation cover
- A Zero Depreciation cover can be bought while buying a new insurance policy or at the time of renewal.
- The coverage applies to a wide range of materials, including fiberglass, plastic, rubber, and nylon.
- The cover can only be purchased for new bikes or bikes that are up to two-years-old.
- The number of claims you can make on this cover completely depends on the insurance company you’re opting.
- Damages resulting from normal wear and tear won’t be included in the Zero Depreciation cover.
- This cover can be applied to bikes with modifications.
- Damages from mechanical breakdowns are not included in the cover.
To be able to make a motor insurance claim, make sure to renew the Zero Depreciation cover annually, provided your vehicle is eligible for this cover, and enjoy its benefits. For people living in accident-prone areas or people with expensive bikes, this cover is a must-have. If you don’t already have it, opt for it during renewal or get ready to face the effects of depreciation.