Fibre Parts Covered In Bike Insurance
- Author :
- TATA AIG Team
- Published on :
If you're a bike owner, you know that keeping your bike in good condition is important. But what happens when your bike meets with an accident and is damaged? A comprehensive bike insurance policy provides financial coverage against damage to the bike, injuries caused to the owner-driver, and any third-party liabilities. However, does it cover damages caused to specific parts of your bike's body?
Mostly, yes! Most basic bike insurance policies will cover standard parts and accessories, including bike fibre parts. However, comprehensive insurance for two-wheelers does not cover the full cost of repairs and replacements. It is so because of depreciation. Your bike’s value depreciates with time, and the bike fibre parts depreciate by 30%.
You can buy a zero-depreciation add-on cover for your entire two-wheeler insurance so that you don't have to pay a deductible amount out of your pocket for any defective part. If you want to know more about the zero-depreciation add-on, keep reading.
What is Zero Depreciation Bike Insurance Add-on Cover?
Zero depreciation bike insurance is an add-on cover that protects the full value of your bike in the event of a total loss. This means if your bike is damaged in an accident, you will be reimbursed the full expense of your bike repair from the insurance company. The insurer will calculate the payment as per the IDV at the time of purchasing the zero-depreciation add-on.
Take this small example for better understanding. You fix the fibre parts of your bike’s body after an accident. The insurer will pay 70% of the cost after calculating the depreciation of the fibre parts. With the zero-depreciation add-on, you can get full reimbursement.
There are a few things to keep in mind with zero depreciation coverage:
- It's typically only available on new bikes or bikes less than 5 years old.
- Zero-depreciation add-on will increase your bike insurance price, just like any other add-on would do.
- The parts' deducted depreciation values differ from each other.
The following table will elaborate the detailed information on the depreciated bike parts:
|Depreciable Bike Parts||Depreciated Cost (% of Total Cost)|
|Rubber, Nylon, Plastic||50%|
|Tyre And Tube||50%|
Difference Between a Standard Comprehensive Policy and Zero Depreciation Insurance for the Bike
First of all, comprehensive two-wheeler insurance is a standalone insurance policy, while the zero-depreciation is an add-on. You can buy comprehensive bike insurance for your two-wheeler without any add-on, but you cannot buy the zero-depreciation add-on only. You will require standalone own-damage cover insurance or a comprehensive insurance policy.
Secondly, standard comprehensive insurance for two-wheelers policy has a depreciation cover of 20-50%. This means that if your bike is damaged, the insurer will partially pay you the repair cost, depending upon which part has been damaged (refer to the depreciation calculation table). On the other hand, a zero-depreciation add-on cover has a 100% depreciation cover. This means for any damage repair, you will be reimbursed in full.
Here is a table simplifying the differences between comprehensive coverage and zero-depreciation add-on cover:
Factors to Consider Before Purchasing a Zero-Depreciation Bike Insurance Policy
Add-on covers are a great way to get extra protection for your bike. But when should you buy an add-on zero depreciation cover for your bike?
Here are a few things that you must keep in mind before you decide what is best for you:
- If you only ride occasionally, then an add-on cover may not be necessary. However, if you ride frequently or use your bike as your main mode of transportation, then the zero-depreciation add-on cover can give you peace of mind knowing that your bike is protected.
- If your bike is worth a lot of money, then the zero-depreciation add-on cover can help protect your investment.
- If you live in a busy area with a lot of traffic, then an add-on cover can help protect your bike from potential accidents.
- If you live in an area with harsh weather conditions, then an add-on cover can help protect your bike from damage caused by the elements.
Summing It Up
A comprehensive two-wheeler insurance policy costs more than third-party insurance. Now, if you want a zero-depreciation cover on it, it can increase your bike insurance premium. So, judge wisely whether you need it or not. You can browse all bike insurance policies and bike insurance prices on Tata AIG’s website. Further, we suggest you use our bike insurance calculator to calculate your premium before you choose any of our plans.