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What is Zero Depreciation Bike Insurance?

A complete guide on zero or nil depreciation cover for bike insurance providing full coverage to motorcycle.

  • 21 Aug 2023
  • 3 min read
  • 119 views

Are you a proud owner of a sleek, powerful motorcycle you have poured your heart and soul into? Do you spend hours polishing its chrome and tinkering with its engine, ensuring it is always in top-notch condition? If so, then you know that the upkeep of your prized possession can be expensive. And, let's face it, regardless of your efforts, the value of your bike depreciates each year, and after a few years, reselling it will hardly get you any money. Furthermore, in the event of an accident while riding your bike, the insurer will only pay out after accounting for depreciation. If you are curious about the percentage of depreciation your bike experiences each year, refer to the table below for assistance.

Bike’s Age

Depreciation

0-6 months

5%

6-12 months

15%

12-24 months

20%

24-36 months

30%

36-48 months

40%

48-60 months

50%


The zero depreciation add-on kicks in to help you avoid depreciation and get the most out of your two-wheeler insurance. Zero Depreciation Cover is a type of add-on or rider to a comprehensive bike insurance policy that provides complete coverage without accounting for any depreciation in the value of the insured bike or its parts. In case of an accident or damage to the bike, the insurance company will cover the entire cost of repair or replacement of the damaged parts without any deduction for depreciation.

Also read:

What gets covered in zero depreciation bike insurance?

This policy's inclusions are straightforward. Here's what you should learn about.

  • This rider compensates for the cost of replacement and repair at the time of claim settlement without considering the depreciation of the parts, including fibreglass, nylon, plastic parts, and rubber.
  • Few insurers may also compensate for the battery and tires without taking into account the depreciation.
  • You can buy this cover only at the time of purchasing a new policy or renewing an existing plan.
  • The number of claims allowed under zero depreciation rider in a policy year can vary based on the insurance company and the policy’s terms and conditions.


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