Depreciation refers to the reduction in a vehicle’s actual worth due to the gradual wear and tear that takes place with time. A standard two-wheeler insurance considers the depreciated value of your bike while settling an insurance claim. Therefore, you might have to spend some money from your pocket to carry out the repair works or to replace the spare parts. However, if you want to avoid that, you can add the zero-depreciation bike insurance cover to your existing bike insurance as an add-on cover. Some of the main benefits of subscribing to this add-on cover are explained below:
A zero-depreciation bike insurance cover helps you to get the complete value of the claim as reimbursement regardless of how old your bike is. The depreciated value will not be considered even while replacing the spare parts of your vehicle. You will have to pay an extra premium for this cover, but it is certainly beneficial and offers greater coverage in the long run.
Inclusion of depreciable components
A bike contains many depreciable components or parts made of rubber, plastic, fiberglass, nylon, etc. Most bike insurance policies do not include the replacement or repair costs of these parts while settling the claim. As a result, you will have to pay the repair costs on your own.
However, if you have added the zero-depreciation cover, you need not pay this amount by yourself as it will be included in the insurance settlement itself.
Some zero cover insurance policies also provide coverage for the repair costs of tyres and battery of your bike without considering their depreciated values. Therefore, you will always benefit from this add-on cover as it saves your money each time irrespective of the types of damages that have been inflicted on your bike during an accident.
Things to be considered while availing of a zero-depreciation bike cover:
Age of your bike
You can purchase this add-on cover immediately after purchasing your bike. To continue receiving the benefits of this add-on cover, you will have to keep renewing it year after year. You can also purchase it at a later point whenever you feel it necessary for your bike. However, if your bike is very old or in a bad condition then you might not be eligible for this additional cover.
Also, if your bike is damaged to the extent that it cannot be repaired, then you will not be able to add the zero-depreciation cover to your existing policy.
Third-party bike cover
You will not be able to add the zero-depreciation bike insurance cover as a top-up to your third-party bike insurance cover. This is because it is only possible to add it to a standard or comprehensive two-wheeler insurance policy.
Zero depreciation cover for the bike comes with a specific claim limit depending on your insurance provider or policy that you have subscribed to. Therefore, even if you have added it as a top-up to your bike cover policy, you may not be able to use it every time.
Also, you might not get the repair services at all the garages and service points in your area after availing of this add-on cover as most insurance providers provide these services only in the garages that are included in their network.
Moreover, the terms and conditions of a zero-depreciation bike insurance policy might vary from insurer to insurer. Therefore, you should compare various types of bike insurance policies and add-on covers by visiting an online insurance aggregator like Bajaj Finserv. This will not only give you a clear idea about different types of bike insurance policies, but you will also be able to understand the benefits of zero depreciation and other add-on covers properly.