As per the Motor Vehicles Act in India, every bike owner must have a basic third-party insurance policy covering damages to a third party’s life or property.
Riders are increasingly seeking comprehensive coverage that minimises out-of-pocket expenses when purchasing bike insurance. A zero-depreciation policy is a popular choice, as it ensures that depreciation costs are not deducted from claim settlements.
What is zero depreciation in bike insurance?
A zero depreciation cover is an add-on to comprehensive bike insurance that ensures full claim payouts without deducting depreciation. In case of an accident or damage, the insurance company covers the entire repair and replacement cost.
Are tyres covered in zero depreciation bike insurance?
While depreciation is covered for most parts of a vehicle, tyres are typically not covered for the following reasons:
- Wear and tear
Tyres are subject to constant wear and tear. Parts of a bike that need to be regularly replaced or refilled, like oil, filters, and tyres, are considered consumable items. As this is more of a natural process, it is generally not covered under zero depreciation.
- Cost of replacement
The cost of replacing tyres is considered rather inexpensive to most people when compared to other parts. Moreover, tyres are replaced more frequently when compared to other parts.
- Industry standards
Most insurance companies provide coverage only for the main structural components of the vehicle, like the engine, exhaust, transmission, etc. Tyres typically do not fall under this category as they require frequent replacement.
What happens if your tyres are damaged?
If your tyres are damaged, consider:
- Standard bike insurance: Covers tyre damage but deducts depreciation.
- Add-on coverage: Covers tyre damage and labour costs. Check policy details for specific coverage.
Conclusion
Zero depreciation policies cover most vehicle parts but exclude tyres due to frequent wear and replacement. For tyre damage, standard coverage or third party bike insurance may help. Some insurers offer tyre add-ons for repairs or replacements, so reviewing policy terms is essential.
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