Bumper to Bumper Bike Insurance

Bumper-to-Bumper bike insurance, more commonly known as the Zero Depreciation or Nil depreciation cover, is an add-on to your comprehensive policy. As we are aware, a comprehensive policy includes third-party bike insurance and own damage bike insurance policy, offering holistic coverage. The Bumper-to-Bumper or Zero depreciation insurance add-on complements existing coverage so that depreciation is not deducted when you file a claim.

Under a standard comprehensive bike insurance plan, when parts are damaged and need replacement or repair, insurers reduce the claim payout by applying depreciation rates, based on several factors. In effect, you bear part of the cost. Buying a Bumper-to-Bumper bike insurance means that the depreciation is waived off, meaning you receive a higher settlement, closer to the full cost of replacement or repair (subject to deductibles and policy limits).

This add-on is especially useful when dealing with parts made of rubber, plastic, nylon or fibre, that is, materials that depreciate faster and often bear steep deductions in a regular policy. In real-life scenarios, such as after a collision, a fall or damage during traffic, many parts often require replacement. A Bumper-to-Bumper insurance for a bike ensures you do not end up with large depreciation costs.

Typical Depreciation Costs

In bike insurance, depreciation directly reduces your claim payout as insurers deduct depreciation before settling the claim. The Insurance Regulatory and Development Authority of India (IRDAI) sets standard depreciation rates for two-wheelers.

The following is a table to describe the depreciation percentage applied to bike parts:

Here is a table that shows depreciation based on the vehicle age:

Coverage for Plastic, Rubber, and Fibre Parts

One of the primary advantages of a Bumper-to-Bumper (zero depreciation) add-on is that it covers parts typically excluded or heavily depreciated under regular policies. These include plastic, rubber, nylon and fibre components.

Under TATA AIG’s zero depreciation cover, the depreciation deduction on replaced parts is
compensated fully, meaning the policyholder receives reimbursement for the full value of those parts.

No Depreciation Deduction During Claims

A core feature is that depreciation is waived entirely when making claims. That means the insurer does not reduce the claim amount based on age or usage of parts.

For example, under normal policies, a plastic or rubber part may be subject to a 50% depreciation deduction. With a bike insurance Bumper-to-Bumper add-on, such deductions are eliminated.

Cashless Repair Facilities at Network Garages

To make the claim process smooth, opting for repair work at network garages is a convenient option. While TATA AIG’s standard comprehensive two-wheeler policy already supports cashless repairs, adding zero depreciation means the full cost of replacement parts at their listed depreciation-free values is honoured at those garages.

Usually Offered as an Add-On to Comprehensive Policies

Bumper-to-Bumper is not a stand-alone bike insurance in India. It is an add-on that enhances your base comprehensive or own-damage cover. You can opt for the zero depreciation rider with own damage or comprehensive bike insurance.

Limited Claim Eligibility Per Year

Under TATA AIG’s zero depreciation bike insurance, policyholders can typically avail the zero depreciation benefit for up to two claims per policy year. This means that for the first two claims, depreciation on covered parts is fully waived, ensuring maximum claim settlement. Any additional claims within the same policy term will follow the standard depreciation rules as per the base comprehensive bike insurance policy.

Age Restriction on Vehicles

Eligibility for Bumper-to-Bumper typically depends on the age of the bike. With TATA AIG, zero depreciation cover is offered for bikes that are no more than five years old.

Opting for the bike insurance Bumper-to-Bumper with TATA AIG offers riders more than just financial support. It provides confidence and financial security. Here are the key benefits.

Higher Claim Settlement Amount: Since depreciation deductions are waived, your claims are settled at a higher value. This ensures you receive the actual cost of repairing or replacing damaged parts, not a reduced amount.

Savings on Costly Replacement of Plastic/Fibre Parts: Parts like mirrors, mudguards and fairings made of plastic or fibre attract steep depreciation under standard policies. With these add-ons, you save significantly on replacement costs.

Ideal for New and Premium Bikes: If you own a new or high-end bike, repairs and part replacements can be expensive. Zero depreciation cover ensures that your investment stays protected.

Reduced Out-of-Pocket Expenses: Without this add-on, policyholders typically bear a significant portion of the repair costs themselves. With TATA AIG’s cover, these expenses are minimised.

Confidence for Long-Distance Riders: For riders who frequently travel long distances or through high-traffic zones, the assurance of maximum claim coverage adds extra confidence on every ride.

While Bumper-to-Bumper insurance for bikes offers comprehensive coverage, it is important to understand its limitations and exclusions before opting for it.

Higher Premium

The biggest drawback is the Bumper-to-Bumper bike insurance price. Since depreciation is waived during claims, the premium for this add-on is higher than a standard comprehensive policy.

Restrictions on the Age of the Bike

The availability of Zero Depreciation cover for your bike is determined by the bike’s age. You can buy this add-on only if your bike is not older than 5 years.

Limited number of claims

The number of claims you can make under this add-on is restricted. With TATA AIG, the Zero depreciation benefit applies to only the first two claims in a policy year. Subsequent claims follow normal depreciation rules.

Does not Cover Mechanical Breakdown or Wear and Tear

The add-on does not cover losses due to mechanical breakdown, engine failure or general wear and tear. It applies only to accidental damage.

Adding a Bumper-to-Bumper (Zero Depreciation) Cover to your TATA AIG Bike Insurance policy does increase the premium, but the extra cost is often worth the benefits. Typically, the Bumper-to-Bumper bike insurance price makes your overall premium higher than your stand-alone own damage insurance premium or comprehensive insurance premium. The amount that increases depends on several factors, such as:

• Bike’s age and model: New and premium bikes attract a higher premium for the add-on, while older bikes may not be eligible.
• City of Registration: Repair costs vary across cities, influencing the premium calculation.
• Claim History: Frequent claims may impact how much you pay for the add-on.

While the upfront cost is higher, the long-term savings on claims are substantial. Without this cover, depreciation on plastic, fibre and metal parts can significantly reduce the claim settlement.
With TATA AIG’s Zero Depreciation cover, you get the full claim amount without depreciation deductions, which is especially valuable for new or high-end motorcycles.

When buying bike insurance from TATA AIG, you can choose between a standard comprehensive bike insurance policy and an enhanced Bumper-to-Bumper cover. While both protect you against damages and third-party liabilities, there are some important differences.

Which One Should You Choose?

A standard comprehensive policy is suitable for older bikes or those looking for an economical premium.

Zero depreciation or Bumper-to-Bumper is ideal for new or premium motorcycles, where repair costs are high and riders want maximum claim value.

With TATA AIG, adding this cover ensures that your bike’s repair costs are reimbursed without depreciation deductions, offering better financial protection.

Buying bike insurance online with TATA AIG is a swift and easy process. You can purchase your policy with Bumper-to-Bumper add-ons with just a few simple steps.

• Visit the TATA AIG website and select two-wheeler insurance.
• On the page, navigate to bike insurance under the Personal Insurance tab.
• Fill in the bike details, including the registration number, bike make and model to get an accurate quote.
• Select a comprehensive bike insurance policy and tick on the zero depreciation add-on from the list.
• You can add other add-ons to your policy.
• Review the premium and other inclusions and exclusions of the plan.
• Make payment with a secure mode of payment and receive the policy documents in your inbox.
• You can also choose the add-on during the bike insurance renewal process.

Choosing the right two-wheeler insurance is more than just meeting legal requirements. It is about ensuring your financial security every time you are on the road. A standard comprehensive bike insurance policy from TATA AIG offers robust protection, but adding the Zero Depreciation cover takes it a step further by removing the depreciation deduction during claims.

For new and premium motorcycles in particular, this add-on can translate into significant savings and reduced out-of-pocket expenses.

While the premium is slightly higher, the enhanced coverage and financial security often make up for the additional cost. Riders who value maximum coverage, especially those who commute daily or own high-value bikes, will find this add-on particularly worthwhile.

With TATA AIG’s trusted claims process, wide cashless garage network and quick settlements, opting for a Bumper-to-Bumper policy ensures your bike and your finances are well-protected on every journey.