Two-wheeler Insurance Policies provide financial protection from incidents such as theft, natural disasters, vandalism, and third-party liability. When you buy an insurance policy, be aware of the difference between a zero-depreciation policy and a comprehensive policy. We give you some pointers to remember these terms correctly.
What is Zero Depreciation?
As time passes, the value of your bike decreases due to wear and tear. To avoid bike depreciation decreasing your insurance claim amount, a policy called Zero Depreciation Cover can be added. This policy is also known as Nil Depreciation Cover or Bumper to Bumper coverage.
The most popular add-on cover is due to it being able to secure the depreciation amount of your claim. Generally, it covers bikes up to 5 years old, however, the eligibility criteria vary from insurer to insurer. With this cover, all parts of your bike will be insured at 100% except tubes, tyres, and batteries, which are covered at 50%.
Though, this add-on allows you to gain a higher claim amount because the automatic depreciation would no longer be applied and most parts would be covered at 100% once you have this add-on.
The benefit of the Zero Depreciation Bike Insurance Policy
A two-wheeler’s value tends to depreciate as it ages. This is problematic for bike insurance policyholders, as they will receive a lesser amount as compensation after an accident or theft. The zero-depreciation add-on cover is offered by different two-wheeler insurance companies, as a result of which your bike or scooter will be considered to be as valuable as the day when you bought it.
When you have zero depreciation added to your bike insurance policy, if your bike or scooter is damaged as a result of an accident or mishap, the default depreciation that may arise due to wear and tear of your vehicle’s body parts will not be considered while assessing the claim amount. With this add-on cover, the insurance company will pay 100% of the repair expenses of any damaged body part of the vehicle, after deducting the deductible, if any. In short, the zero depreciation will let you get the amount for a complete loss.
What is a Comprehensive Bike Insurance Policy?
A comprehensive bike insurance policy will provide you with extensive coverage against all kinds of unforeseen events so that you can drive worry-free. It combines third-party liability insurance with own-damage cover.
What is covered?
- Covers accidental damage to your bike or third party
- Coverage against any theft, loss, and damage
- Any damages caused by natural calamities
Benefits of Comprehensive Bike Insurance
- Following are the benefits of a comprehensive bike insurance plan:
- Personal accident cover
- Offers protection for costs incurred due to damages
- Coverage against third-party liability
- Coverage against rider’s injury
- All the benefits of Third-Party Insurance i.e. damage to a third party’s property or vehicle and also any personal damages to a third party like hospitalisation, death, or disability.
Which is better, Zero depreciation or a Comprehensive Insurance policy?
The two-wheeler insurance market is flooded with several options with their own benefits. The Comprehensive Bike Insurance Plan provides coverage against damages to your bike and third-party liabilities. Purchasing the Comprehensive Bike Insurance Plan is recommended for broader coverage. The Zero Depreciation Plan add-on can extend the insurance coverage.
