Zero Depreciation Bike Insurance

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.

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 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 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.

• 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.

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.

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.

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.

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.

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.