Zero Depreciation in Two-Wheeler Insurance

Two-wheeler insurance zero depreciation meaning is the coverage that ensures policyholders receive the full claim amount without any deduction for depreciation.

Also called bumper-to-bumper or nil depreciation cover, it is available with comprehensive or own-damage two-wheeler insurance policies. It helps you get complete compensation for repair or replacement costs.

Depreciation is the reduction in your bike’s value over time, determined by its Insured Declared Value (IDV), which is the maximum amount payable in case of total loss or theft.

Normally, insurers deduct depreciation costs when you file a claim for repairs or replacements. However, with bike insurance with zero depreciation add-on, the insurer pays the entire cost of the depreciated parts, considering your bike as good as new in claim settlements.

Zero depreciation bike insurance cover cannot be availed with a third-party insurance policy and can be purchased only with a comprehensive or standalone own damage policy. You can claim a limited number of times during the policy term, as mentioned in your policy document.

TATA AIG two-wheeler zero dep insurance offers maximum protection against repair costs, including for new or premium bikes.

Depreciation is the gradual loss in a two-wheeler’s value over time due to its regular wear and tear. In bike insurance, it significantly impacts the claim amount you receive for part repairs or replacements.

When a bike is damaged, the insurance does not usually pay the full repair cost. Instead, a specific percentage is deducted based on the part’s material type.

Components like rubber, plastic, and fibre deteriorate faster, leading to higher depreciation, while glass parts retain their value.

Standard Bike Insurance Depreciation Rates for Different Bike Parts

Since depreciation lowers the claim amount, many bike owners choose a Zero Depreciation add-on. It ensures the insurer pays the full repair cost without deducting depreciation, offering complete protection against part value reduction.

The rate of depreciation for all other parts, including wooden parts, will be as per the schedule mentioned in the following section.

Rate of Depreciation in Bike Insurance as Per the Age of the Bike

Please note: For painting, a 50% depreciation rate applies only to material costs. If the painting bill is consolidated, 25% of the total painting cost is treated as material for calculating depreciation.

No depreciation applies to Non-OEM (Original Equipment Manufacturer) or Non-OES (Original Equipment Supplier) parts used during bike repairs under the zero depreciation insurance policy.

Also Read: Best Bikes Under 10 Lakhs

The table below highlights how depreciation rates differ with and without the bike insurance 0 depreciation add-on under TATA AIG’s bike insurance policy.

This cover is available for bikes up to 5 years old. For older bikes, this benefit may not apply.

Please note: With a zero depreciation bike insurance add-on, policyholders receive complete claim benefits without any depreciation deductions, ensuring maximum financial protection for their two-wheelers. However, mandatory deductibles and the cost of any uninsured parts still apply.

Also Read: Fibre Parts Covered in Bike Insurance

Bike insurance plans can be categorised into three types:

• Comprehensive Two-Wheeler Insurance
• Standalone Own-Damage Bike Insurance
• Third-Party Liability Insurance

Third-Party Liability Insurance

As per the Motor Vehicles Act, 1988, every two-wheeler owner in India must have a Third-Party Bike Insurance policy. This cover protects against legal and financial liabilities arising from injuries, death or property damage caused to a third party due to your bike.

However, it does not cover damage to your own bike. This policy offers basic financial coverage and fulfils the mandatory legal requirement for all riders.

Standalone Own-Damage Bike Insurance

A standalone Own Damage Bike Insurance Policy protects your bike from accidents, fire, theft, and natural or man-made disasters. While this policy does not cover third-party liabilities, it ensures that your bike is safeguarded against natural disasters, man-made incidents, fire-related damages, and bike theft.

An own damage bike insurance policy allows useful add-on features such as Zero Depreciation and Roadside Assistance for better coverage. It is ideal for existing third-party policyholders.

Comprehensive Two-wheeler Insurance (with Add-ons)

A Comprehensive Insurance Policy combines third-party and own-damage coverage for complete protection. It covers losses due to accidents, natural calamities, theft, fire and vandalism, ensuring financial security for the bike owner.

You can enhance this plan with valuable add-ons like Zero Depreciation, Roadside Assistance,
and Return-to-Invoice. Understanding the two-wheeler insurance zero depreciation meaning helps you see how it ensures full claim value without deductions.

The zero depreciation cover from TATA AIG is an add-on and not a standalone policy. It must be purchased along with a Comprehensive or Standalone Own-Damage Bike Insurance plan. A comprehensive policy provides wide coverage, while adding Zero Depreciation enhances your claim benefits. It removes depreciation deductions, ensuring you receive the full claim amount for repairs and replacements.

Key Differences Between Comprehensive and Zero Depreciation Add-on

• Full Claim Settlement: With a zero depreciation add-on, you get coverage for the entire cost of repairing or replacing damaged parts without deducting depreciation, ensuring maximum claim value.
• Higher Claim Settlement: With Zero Depreciation Cover, the insurer bears the entire repair and replacement cost without factoring in depreciation, leading to a higher claim payout.
• Coverage for Battery and Tyres: TATA AIG may also cover partial battery and tyre damages without considering depreciation.
• Reduced Out-of-Pocket Expenses: Bike owners do not need to pay for depreciation-related costs, making accident repairs more affordable and financially stress-free.
• Better Value for New Bikes: The add-on is especially useful for new or high-end bikes, helping owners maintain their vehicle’s value even after years of use.
• Covers Expensive Parts: It includes coverage for costly components like plastic, rubber, and fibre, which otherwise attract higher depreciation in regular policies.
• Improved Vehicle Maintenance: Since the insurer covers complete repair costs, owners can ensure high-quality repairs using genuine parts.
• Enhanced Financial Security: The add-on offers stronger protection against unexpected repair expenses after an accident.
• Greater Riding Confidence: Riders can enjoy their journeys confidently, knowing they will receive complete financial support in case of accidental damage.
• Flexibility in Purchase: You can opt for Zero Depreciation Cover when purchasing a new policy or at the time of renewal.

• Eligibility and Bike Age: Zero depreciation cover is available only for new bikes or those less than five years old. Always check your bike’s eligibility before purchasing.
• Coverage Scope: Confirm whether all parts - metal, plastic, rubber, and fibre - are covered, as inclusions may vary between plans.
• Not Applicable for Total Loss or Theft: This add-on does not apply if your bike is completely damaged beyond repair or stolen.
• Policy Type: The add-on is available only with comprehensive or own-damage insurance, not with third-party policies. Ensure you have the right base plan.
• Claim Limit: Some bike insurance policies restrict the number of times you can claim zero depreciation benefits during the policy term. Review these limits in your policy document.
• No Coverage for Mechanical Failures: Damages caused by mechanical breakdowns or wear and tear are not covered under this add-on.
• Premium Cost: Adding this cover increases your insurance premium slightly, but the added protection often outweighs the extra cost.
• Deductibles and Exclusions: You will still need to pay compulsory deductibles and costs for uninsured parts. Review the terms carefully before opting in.
• Ideal Usage: This add-on is highly recommended for new, premium, or frequently used bikes, as it offers complete financial protection against depreciation losses.

• Owners of New Bikes: If your bike is brand new, a zero depreciation cover helps protect its full value without any deductions during claim settlements.
• Premium or High-End Bike Owners: Riders who own expensive bikes with costly parts should choose this add-on to avoid paying high repair or replacement costs after accidents.
• Bikes Less Than 5 Years Old: You can buy this add-on only for bikes that are up to five years old. If your bike falls within this range, opting for this cover is a smart choice.
• Daily Commuters: Individuals who use their bikes regularly for work or travel are more exposed to road risks, making this cover a smart choice for complete protection.
• Riders in Accident-Prone Areas: If you frequently commute through high-traffic or accident-prone zones, this cover helps you minimise repair costs for accidental damage.
• New or Inexperienced Riders: New riders may lack experience handling accidents and repairs. This add-on ensures maximum financial support during accidents or damage.
• Those Who Want to Avoid Out-of-Pocket Expenses: With Zero Depreciation Cover, the insurer pays the full claim amount for the repair or replacement of depreciable parts, reducing your financial burden.
• Owners Planning Long-Term Use: If you plan to keep your bike for several years, this cover helps maintain its value and reduces overall repair expenses.
• Owners Who Want to Maintain Their Bike’s Aesthetics: If you cannot tolerate even minor dents or scratches on your bike and want it always to look new, this cover ensures that repairs are taken care of without factoring in depreciation.
• Safety-Conscious Riders: Anyone who wants worry-free protection and complete coverage against depreciation-related losses will benefit greatly from a zero depreciation policy.

Step 1: Go to the official TATA AIG website and navigate to the Bike Insurance section.
Step 2: Enter basic details such as your bike’s make and model, registration number, and year of manufacture.
Step 3: Choose between a Comprehensive Bike Insurance Policy or a Standalone Own Damage Policy. Both options let you add the Zero Depreciation Cover.
Step 4: From the list of available add-ons, select the best zero dep bike insurance to enhance your policy benefits.
Step 5: Review your premium amount after adding the cover. Once satisfied, make the payment online through secure payment options.
Step 6: After successful payment, you will receive the Zero Depreciation Bike Insurance policy document via email. You can also download it anytime from the TATA AIG website for future reference.

Yes, your premium will go up a bit when you add zero depreciation cover to your bike insurance. But that small increase comes with a big advantage, you get the full claim amount without any deduction for depreciation.

Since your insurer takes on more financial responsibility for repairs and parts, the zero dep bike insurance price is adjusted for that. Still, the extra cost is quite small compared to what you could save during a claim.

If your bike needs expensive parts like plastic, rubber, or fibre replaced, zero depreciation can save you a lot of money. It acts like a safety net by protecting you from heavy out-of-pocket expenses.

If you own a new or high-end bike, choosing this add-on can be beneficial. A slightly higher premium now can save you from major repair bills later, and helps keep your bike’s value intact.

Also Read: How Zero Depreciation Affects Your Two-Wheeler Insurance Premium

• Return to Invoice (RTI): Covers the difference between your bike’s IDV and its invoice price or replacement cost in case of theft or total loss.
• Consumable Expenses Cover: Reimburses costs of consumables like oil, nuts, bolts, and grease used during authorised repairs.
• Emergency Medical Expenses: Covers hospitalisation, ambulance, and treatment costs for you and your pillion after an accident.
• Roadside Assistance: Offers 24x7 help for flat tyres, breakdowns, towing, and emergency fuel delivery.
• Engine Secure: Covers water, oil, or gearbox damage with prompt reporting.
• Tyre and Rim Secure: Pays for tyre and rim repairs or replacements due to blowouts or potholes.

Also Read: Zero Dep Vs Return to Invoice

A bike insurance plan with zero depreciation add-on gives complete financial protection, letting you claim the full repair cost without any cut for wear and tear. It works best for new, premium, or regularly used bikes, helping you keep the vehicle’s value and ride without worry.

At TATA AIG, we offer bike insurance plans built around your needs. With years of trust, a solid claim record, and flexible add-ons like Zero Depreciation, we make sure your two-wheeler stays protected always.

Whether you pick a third-party bike insurance plan for legal safety or a comprehensive policy for wider cover, our plans promise security and peace of mind.

Buy your TATA AIG bike insurance India plan today and enjoy complete protection every time you ride.