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Zero Depreciation Cover for Two Wheeler Insurance

Buying a two-wheeler is of high expense. If you are the owner of a bike you might have gone through the stages of tracking your finances while managing your savings to buy a two-wheeler. You might already have noted the impact of lifestyle on your vehicle. You can’t prevent your car from regular aging or any unforeseen damage caused while commuting. These damages or aging of the vehicle have a significant amount of impact on your pocket. These situations make an appropriate insurance with higher coverages important for your two-wheeler.

Zero Depreciation - What is it?

Depreciation is a reduction of the value of an asset or a possession with its use. Your brand new bike values more than your old bike. Insurance companies take this aging into consideration while calculating your claim amount. A standard coverage plan gives you the claim amount while deducting the value of the part considering its age. The zero-depreciation plan offers full coverage on the part that is to be replaced without any deduction in its market value. It extends the coverages on the type of material like fiber, glass, rubber, and plastic. A standard plans’ deduction rate normally ranges between 0 to 40% on the part to be replaced, while in Zero Depreciation plan you can avail full amount on the replaced part without any deduction leading you to utilize an optimum benefit.

With an increase in demand on Zero Depreciation plan, many prominent insurers in India offer this plan to their policyholders.

When is it an ideal time to buy a Zero Depreciation plan?

Zero depreciation is given on the vehicles which are new and the plan does not cover the two-wheelers which are more than 3 years old. The plan can deliver an optimized benefit if it is taken on any brand new bike. It is advised to choose Zero Depreciation plan while you are buying a new insurance for your vehicle. If you are interested in buying Zero Depreciation plan, you can choose it while renewing your standard policy.

The insurance companies hold a limitation on the number of claims opted during the policy period without depreciation which is generally 2 claims.

Exclusions in Zero Depreciation Plan

Every plan has its coverages and exclusions; zero depreciation plan is no different. Here are some of the exclusions where the plan can't your vehicle.

  • Regular wear and Tear of the two-wheeler.
  • Damage caused by un-insured accessories.
  • Damage caused by uninsured peril
  • Damages caused by mechanical breakdown

Do you know the benefits you enjoy with Zero Depreciation Plan?

Zero Depreciation plan comes with many benefits to avail while you are insured with it.

  • If you have a zero depreciation plan, you are safe from Out-of-pocket expenses.
  • This value-added plan avoids the depreciation charged on the parts that required replacement.
  • It settles most claims without charging depreciation on the insured parts.
  • Your investment on your bike becomes zero with this plan.

See the conditions upon which Zero Depreciation plan can be availed

Increased coverage means, increased cost likewise, Zero Depreciation cost a bit more than a standard insurance plan, but it is worth investing in this plan to enjoy an extended period of benefits. The plan points out some conditions which you need to notice before claiming.

  • The vehicle which is insured by zero depreciation plan needs to be repaired in one of the network garages provided by the insurance company.
  • You can avail the zero depreciation cover only for 2 times during the policy tenure.
  • No coverage is offered to the vehicle if it is completely damaged or loss caused by theft.

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