Updated on - 30 Dec 2025
Zero depreciation in bike insurance is one of the most popular add-ons riders look for today. It’s designed to offer stronger financial protection and a smoother claim experience than a standard policy. Before choosing this cover, it is essential to understand what it is, when it is beneficial and how it adds value to your bike insurance policy. This guide walks you through everything you need to know, so that you can make a confident and informed decision.
What is a zero depreciation add-on?
The zero depreciation cover kicks in to help you avoid depreciation and get the most out of your two-wheeler insurance. It is a type of add-on or rider to a comprehensive two-wheeler insurance plan that provides complete coverage, accounting for no depreciation in the value of the insured bike or its parts. In the event of an accident or damage to the bike, the insurance company will cover the entire cost of repairing or replacing the damaged parts without any depreciation deduction.
Difference between comprehensive policy and zero depreciation bike insurance
While both the comprehensive plan and the zero depreciation cover aim to provide extensive coverage, they differ in terms of claim settlements and cost implications. Here’s a table with the differences outlined:
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Differences
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Comprehensive Bike Insurance
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Zero Depreciation Bike Insurance
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Depreciation Deduction
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In a standard comprehensive plan, the insurer deducts depreciation on parts. So, you will get the replacement costs based on the depreciated value.
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With the zero depreciation add-on, the insurer does not deduct the depreciated value of parts during claim settlements, ensuring you receive the full claim amount for repairs or replacements.
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Premiums
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Lower premium.
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Higher premium.
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Example:
Suppose the replacement cost for your bike’s plastic part is ₹ 2,000.
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If the depreciation rate for plastic parts is 50%, the insurer will deduct ₹1,000 as depreciation.
You'll receive ₹1,000 from the insurer and bear the remaining ₹1,000 yourself.
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The insurer will cover the full ₹2,000 replacement cost without any depreciation deduction, resulting in no out-of-pocket expense for you.
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When can you avail yourself of zero depreciation bike insurance?
Opting for a zero depreciation add-on is particularly beneficial for:
- New bike owners: If you've purchased a new bike, especially a high-end model, the zero depreciation cover ensures that the full value of parts is covered without depreciation deductions.
- Expensive or premium bikes: Owners of premium bikes with costly parts can benefit from this add-on, as it covers high replacement costs without considering depreciation.
- Riders in accident-prone areas: If you frequently ride in areas with high traffic density or poor road conditions, the likelihood of accidents increases. The zero depreciation cover can be advantageous in such scenarios.
- Inexperienced riders: New or less experienced riders with a higher risk of minor accidents can find this add-on useful to minimise repair costs.
Factors affecting zero depreciation bike insurance premium
Your zero depreciation bike insurance premium depends on several important factors. Here’s what insurers usually look at:
- Age of the bike: The newer the bike, the higher the zero-depreciation premium. As a bike ages, its value decreases, so insurers charge a lower premium.
- Make and model: Premium bikes cost more to repair, which increases the zero-depreciation premium.
- Engine capacity: Bikes with higher cubic capacity (CC) tend to have higher premiums due to the expense of parts and increased repair costs.
- Location: Riders in busy cities pay more because accidents, thefts and claims are more common.
- Insured declared value (IDV): A higher IDV in bike insurance leads to a higher zero depreciation premium, as the insurer’s risk increases.
- Add-ons and modifications: Extra accessories or custom parts enhance the bike’s repair value, which in turn increases the premium.
How to buy or renew zero depreciation bike insurance online?
Buying or renewing zero depreciation bike insurance online is a quick and easy process. Start by visiting the insurer’s website or a trusted online aggregator and enter your bike details or your existing policy if you are renewing. You should look for a comprehensive insurance plan, as zero depreciation cannot be added to a third-party-only policy.
After you have selected the type of policy you will go for, check whether your bike falls within the insurer’s eligible age range for this add-on. Then go to the add-on section, select the zero depreciation cover, and review the updated premium. Once everything looks correct, make the payment and download your new or renewed policy instantly.
Why should you choose zero depreciation cover for your two-wheeler?
Choosing a zero depreciation cover for a two-wheeler is helpful as it allows you to claim almost the full repair amount without any depreciation cuts on replaced parts. Costly components like plastic, rubber and even fibreglass are fully covered, making repairs more affordable.
As a bike gets older, regular policies reduce payout, but a zero depreciation cover ensures you receive the full replacement value as per the policy terms. This makes the claim process smooth and stress-free. It is especially useful for premium or customised bikes that have expensive parts. This add-on can be purchased when buying a new policy or during renewal, and the number of zero-depreciation claims allowed in a year depends on the insurer and the policy’s terms and conditions.
Conclusion
Zero depreciation coverage adds real value to your bike insurance by protecting you against unforeseen maintenance costs and depreciation cuts. It protects your two-wheeler financially, especially if the parts are expensive or custom-made. If you want stronger coverage and a smoother claim experience, choosing a comprehensive bike insurance with a zero-depreciation add-on is a smart step. For expert guidance, fill out the form provided on this page, and our experts will connect with you.
FAQs
1. Can zero depreciation be added mid-policy?
Most insurers allow zero depreciation only at the time of purchase or renewal, not during the policy period.
2. Can you claim zero depreciation for cosmetic damage?
Only if repair or replacement of parts is required, minor superficial scratches without part replacement may not qualify.
3. Is zero depreciation cover transferable to another owner?
Yes, the zero depreciation cover can be transferred to the new owner when the car is sold, since the add-on is linked to the vehicle rather than the policyholder. The transfer is allowed as long as the car’s registration number remains unchanged.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.