What are the benefits of the Zero-Depreciation Policy?

A standard / general insurance policy provides protection for your vehicle against the losses/ damages caused due to accidents or thefts. When filing a claim against the losses, the insurance company will provide you with compensation after the deduction of depreciation (loss in value of an asset over time).

Zero depreciation, also known as Nil depreciation, is an add-on cover that offers comprehensive coverage without considering the factor of depreciation. The insurance company will pay for the entire cost of the body part for replacement.

• For example, if you own a bike purchased at an initial IDV (Insured Declared Value) and in case the bike comes across an accident, then under the policy of Zero Depreciation, the insurance company will cover the entire settlement including the cost of the replaced part.

Advantages:

• Unlike Normal Bike Insurance, wherein the claim amount is based on the current value of the vehicle, which factors in depreciation, Zero Depreciation Cover offers a full settlement coverage without taking into account the depreciation factor.

• The owner of the bike gets benefited from both; benefits that zero-depreciation cover offers along with the advantages of the existing policy.

• You will receive the actual claim amount after standard deductions.

• It is the best policy for those who own a bike with expensive spare products.

• It helps in saving more money as you will get the entire claim amount without spending much from your pocket.

• You can avail Zero depreciation cover at the time of purchase or renewal of the policy.

• Covers compensation for parts such as plastic, rubber, nylon, and fiberglass.

• Though the premium paid is slightly higher than the standard bike insurance, the coverage reduces your expenses to almost zero.

• Control expenses incurred as per the current market value.

• Adds value to the basic cover and offers security and peace of mind to the bike owner.

Though the Zero depreciation cover offers varied benefits, certain factors are to be taken into consideration before opting for this policy:

• This policy is valid for only two claims in the entire policy cover period and is applicable for two wheelers with a maximum age of two years.

• The policy is not applicable in case the two-wheeler is severely damaged or beyond the scope of repair. In case the bike is stolen, the insurance provider will not pay you the entire claim unless your policy document has a specific mention in it.

• Compensation for the damages caused due to the mechanical breakdown of the bike is excluded.

• To file a claim, you need to get your bike repaired only at the available network garage.

• The policy is valid for two wheelers of specific makes and models. Check with the insurance provided when opting for this add-on cover.