Zero Depreciation Bike Insurance

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Zero Depreciation Bike Insurance

Having bike insurance is mandatory in India as per the Motor Vehicles Act, 1988. However, simply having insurance for a bike does not promise its complete protection.

When you buy two-wheeler insurance, you must consider the depreciation value of your bike. Depreciation means a reduction in the value of your bike and its parts due to wear and tear.

Comprehensive insurance for bikes pays according to the Insured Declared Value (IDV) – the current market value of your bike. Additionally, your insurance provider only partially pays for the cost of replacing the bike’s rubber, plastic, and metal parts.

To prevent this from happening, it is recommended that you purchase a Zero Depreciation Cover along with your comprehensive bike insurance.

Zero Depreciation in Bike Insurance Meaning

Zero depreciation in bike insurance allows you to get the complete claim settlement amount of your insurance policy without any depreciation deductions.

Depreciation reimbursement meaning here stands for the out-of-pocket costs you would normally have to pay during a claim when the insurer deducts the depreciation amount for repairs/replacement of bike parts.

However, the full cost of repairs/replacement of insured parts can be covered under a Zero or NIL Depreciation Cover in insurance.

Zero depreciation bike insurance is the perfect enhancement to your bike insurance policy, especially if you have bought a new bike or a luxury bike with expensive parts.

Understanding Depreciation in Bike Insurance

The primary reason why you buy two-wheeler insurance is to secure your bike against financial liabilities that may occur in the future. Considering this, the depreciation value is an important component in evaluating your bike insurance cost.

The reduction in the value of your bike as it gets older with use is termed depreciation. For example, if the value of your bike was ₹50,000 at the time of purchase, and its current market value is ₹30,000, then you have suffered a depreciation value of ₹20,000 on your bike.

This current market value is determined considering the IDV. IDV is the maximum amount your insurance provider will pay if your bike is damaged beyond repair or if you are a victim of total vehicular theft.

Benefits of Zero Depreciation Bike Insurance Cover

Following are the benefits of opting for a Zero Depreciation Cover along with your comprehensive two-wheeler policy:

  • You don't have to bear a lot of out-of-pocket expenses.

  • By adding the zero depreciation cover, you can enhance the scope of your existing two-wheeler insurance policy.

  • Your claim amount will not be reduced, which can be a big relief.

  • If you have a premium bike, the add-on cover will provide the maximum claim amount for the costly spare parts, too.

  • You can receive the maximum claim amount after considering the deductibles.

  • You can add zero-dep cover to your comprehensive or standalone own damage insurance policy for two-wheelers.

  • You can purchase the Zero Depreciation two-wheeler insurance cover when you buy bike insurance and at the time of bike insurance renewal.

The above reasons make it clear that zero depreciation is one of the most beneficial add-on covers for your bike insurance, especially if you have an expensive bike or a bike with expensive spare parts.

Inclusions of Zero Depreciation Cover For Two-Wheeler Insurance

Inclusions are those expenses that are included and covered under the zero depreciation cover. Following is the list of inclusions:

  • It offers complete compensation for depreciable parts that require replacement.

  • The entire cost of repair and replacement is borne during the settlement of the claim.

  • Selective insurance providers also cover partial battery damages and tyres without considering the depreciation.

  • You can claim the entire cost of repair or replacement of plastic and fibre parts, which is not available under regular insurance coverage.

Here are the clauses to keep in mind before buying insurance for a bike along with Zero Depreciation Cover:

  • Check with your insurance company how many claims are permitted under this cover.

  • Only certain two-wheeler models are allowed to claim the NIL depreciation without the excess.

Exclusions of Nil Depreciation Cover in Two-Wheeler Vehicle Insurance

  • Exclusions are those losses/expenses that are not covered under a zero depreciation add-on.

  • Losses or damage occurring due to regular usage or wear and tear of the vehicle.

  • Any damage due to events or perils that are outside the scope of the insurance policy.

  • Total loss or damage to the vehicle is not covered by the ND cover in bike insurance.

  • Any damage due to mechanical fault in the two-wheeler.

  • Damage or loss caused to uninsured bike parts (the engine) and items, such as gas kit, bi-furl kit, etc.

Things to Keep in Mind Before Buying a Zero Depreciation Cover

  • The benefits of Zero Dep insurance for a bike are not applicable if your bike is completely damaged or gets stolen.

  • The insured bike must not be more than five years old.

  • Any damage or breakdown due to mechanical faults will not be covered.

  • With zero depreciation cover, you can get a high claim value for the bike without any loss due to the depreciation factor.

When Should You Opt for a Zero Depreciation Cover?

Individuals who have newly purchased a vehicle and for those who are new to riding must buy zero dep bike insurance. Also, NIL Depreciation Cover is necessary if you have a luxury two-wheeler as the parts and components of such bikes are expensive to repair or replace. Considering that India reports the highest number of road-related accidents, a Zero Depreciation Cover can be helpful for every bike rider.

Standard Bike Insurance vs Zero Depreciation Bike Insuranc

Parameter Standard Bike Insurance Zero Dep Bike Insurance
Cost of Premium The cost of the premium is low  The cost of the premium is high as it gives more benefits in the long run.
Age of the Vehicle You can purchase standard insurance for old and new two-wheelers. You can purchase bumper-to-bumper bike insurance for bikes that are less than five years old.
Depreciation Consideration The depreciation of the vehicle is deducted at the time of claim settlement. The depreciation of the vehicle is not deducted at the time of claim settlement.
Repair cost & Cost of Plastic Fibre It is paid by the insured. It is paid by the insurer.
Who Should Buy It? Anyone can purchase standard bike insurance. Luxury bike owners, new bike owners and new riders can benefit from zero dep insurance.

Bike Insurance with Zero Depreciation Vs Without Zero Depreciation

Parameter Bike Insurance Without Zero Depreciation Bike Insurance With Zero Depreciation
Premium The premium is lower as there is no depreciation cover. The premium amount is higher as there is a zero-dep add-on.
Depreciation Depreciation is considered at the time of claim settlement. At the time of claim settlement, depreciation is not considered. 
Age of the Vehicle The age of the two-wheeler does not affect the claim amount. The age of the two-wheeler affects the claim amount.

Steps to Avail Zero Depreciation Bike Insurance With Tata AIG

You can buy zero dep bike insurance from Tata AIG in a few simple steps as mentioned below:

  • Open the official website of Tata AIG.

  • Locate the “Bike” tab on the page and click on it.

  • Enter the vehicle details, such as the registration number, in the box provided.

  • If you already have a policy, click on “Renew Existing Tata AIG Policy.” If you wish to purchase a new policy, click on “Get Price.”

  • On the next page, you must provide your details as asked. Here, you can choose to include the zero depreciation insurance cover.

  • Next, you will see a quote for your insurance premium.

  • If you are happy with the quote, you can pay the premium online and get the policy in a few minutes.

Will Your Premium Increase After Availing a Zero Depreciation Cover?

Yes, the zero dep bike insurance price will increase the cost of your premium. As a Zero Depreciation Cover is an additional rider to complement your comprehensive bike insurance policy, you will be expected to pay an extra premium.

While your overall bike insurance cost will increase with the Zero Depreciation Rider, its benefits in the event of an accident far outweigh the negligible premium you pay for it.

Zero Depreciation Cover with Tata AIG Bike Insurance

The Tata AIG two-wheeler insurance policy protects your bike from all possible road risks. It comes with a choice of seven unique riders, enabling the customisation of your two-wheeler policy.

While our depreciation slabs are always pre-declared, policyholders have the option to waive the depreciation value by opting for a Zero Depreciation Cover. The Zero Depreciation Cover by Tata AIG compensates the insured bike with the entire amount of depreciation deducted on the value of replaced parts as part of the own damage claim.

To Conclude

A zero dep insurance for bike is an excellent add-on to your bike insurance policy if you want to enjoy added benefits. With the help of this add-on, you can get a high claim amount which is unaffected by the depreciation of your bike.

Zero depreciation insurance also allows you to save money as you do not have to incur any out of pocket epenses. However, you must be aware of the inclusions and exclusions of the cover, to make the right choice. You must also compare two-wheeler insurance plans and pick one with maximum benefits.

Tata AIG is a renowned name in the insurance industry, offering affordable and beneficial two-wheeler insurance. If you are looking for bike insurance with comprehensive coverage, a cashless garage facility and the freedom to customise your insurance, then Tata AIG is the right provider.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

What is covered in Zero Depreciation bike insurance?

What is covered in Zero Depreciation bike insurance?

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The inclusions for the zero-depreciation two-wheeler policy are:

Compensation for a bike’s depreciable parts such as nylon, rubber, plastic, etc.

Repair and replacement compensation at the time of claim settlement

Some insurance providers also cover damages to the battery or tyres

What is not covered under Zero Depreciation insurance?

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The exclusions for the zero-depreciation two-wheeler policy are:

Damages owing to mechanical breakdowns and faults

Routine wear and tear owing to ageing

Total loss or total damage to the vehicle

Should I take Zero Depreciation insurance?

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The Zero Depreciation Cover is particularly beneficial for individuals who have recently purchased a bike, are new to riding, or have a luxury car with costly components.

Which is better – zero-depreciation or comprehensive insurance?

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A Zero Depreciation Cover is an add-on that offers the complete claim settlement amount and compensates for the repair and replacement of depreciable bike parts.

A comprehensive insurance policy is a motor insurance plan that offers own-damage cover, third-party cover and personal accident cover to the owner-driver. It is better to buy a comprehensive motor insurance plan and enhance its coverage with a Zero Depreciation Cover.

How many cashless garages are available with Tata AIG two-wheeler insurance?

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Tata AIG two-wheeler insurance offers 4200+ cashless garages for bikes all across the country.

Should you purchase a two-wheeler zero depreciation add-on online?

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Yes, you can purchase a zero depreciation bike insurance online in a few simple steps by visiting the Tata AIG official website.

Can I convert third-party insurance for my bike to zero depreciation insurance?

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No, a third party insurance cannot be converted into a zero depreication insurance. Nil depreciation is a add-on that can be added to your comprehensive or standalone own damage insurance plan for bike.

What is zero depreciation for bike insurance?

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A zero depreciation is a cover or add-on that saves the insured from depreciation losses at the time of claim settlement. In the absence of a zero dep cover, the insurance company will pay you a claim amount after deducting the depreciation of your vehicle.

However, with the inclusion of this cover, the insurer will pay you the full value of the car, excluding certain parts on which 50% depreciation will be charged.

Can we get zero depreciation insurance beyond five years for a bike?

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No, zero depreciation insurance is available only for new bikes that are less than five years old.

Is zero depreciation good or bad?

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Zero depreciation or nil depreciation is good as it exempts the insured from bearing the depreciation liability at the time of claim settlement.

How many times can I claim zero-dep insurance?

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You can claim zero-dep insurance two times in a policy year.

Does IDV matter with zero depreciation?

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Yes, the IDV matters in a zero-depreciation cover, as the premium is decided based on it.

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