You can add additional coverage, a Zero Depreciation add-on, to your comprehensive Two-Wheeler Insurance policy. Depreciation refers to the decrease in an asset’s value brought on by normal wear and tear; it worsens over time. That’s why when settling a claim, insurance companies consider a lower asset value. However, with a Zero Depreciation add-on, this value of the two-wheeler will not be considered depreciated. Hence, your two-wheeler bike insurance claim value will be based on a higher IDV.* Claims are subject to terms and conditions set forth under motor insurance policy.
Depreciation In Bike Insurance: What Is It?
Depreciation is the decline in a two-wheeler’s value over time. Depreciation prevents fully covering the repair or replacement cost of the vehicle and its parts. The insurer will partially cover the repair or replacement of such positions. The owner of the insured bike is responsible for the remaining depreciable portion of the bike part(s) cost. The depreciation cost is deducted and varies depending on the part’s material.* Claims are subject to terms and conditions set forth under the two-wheeler insurance policy.
The Table Listed Depicts The Percentage To Be Paid By The Owner Of The Bike:
| Depreciable Bike Parts | Deducted Depreciation |
| Nylon, Rubber, Plastic Parts | 50% |
| Tubes and Tyres | 50% |
| Fibreglass | 30% |
| Glass | 0% |
The depreciation rate is based on the age of the bike. Let’s see the following table to understand this better:
| Age of the vehicle | % Depreciation |
| Does Not Exceed 6 months | Nil |
| When Exceeding 6 months but not exceeding 1 year | 5% |
| When Exceeding 1 year but not exceeding 2 years | 10% |
| When Exceeding 2 years but not exceeding 3 years | 15% |
| When Exceeding 3 years but not exceeding 4 years | 25% |
| When Exceeding 4 years but not exceeding 5 years | 35% |
| When Exceeding 5 years but not exceeding 10 years | 40% |
| When Exceeding 10 years | 50% |
Various Two-Wheeler Insurance Options
Two-wheeler insurance can be divided into the following categories for ease of understanding:
- Third-party liability insurance
- Comprehensive insurance
- Comprehensive two-wheeler insurance plus add-ons
Vehicle owners in India are required by the Motor Vehicles Act of 1988 to, at the very least, buy a Third-party liability insurance policy. This kind of insurance coverage is made to protect other drivers, pedestrians, and other road users from potential damage caused by your vehicle. A comprehensive two-wheeler insurance policy covers the vehicle’s third-party liability and some other risks. You can choose add-on covers like Zero Depreciation, Two-Wheeler Roadside Assistance, Pillion Rider Cover, Return-to-Invoice, etc., with your comprehensive two-wheeler insurance.*
Claims are subject to terms and conditions set forth under the two-wheeler insurance policy.
Difference Between Zero Depreciation Bike Insurance And The Comprehensive Policy
A Comprehensive Bike Insurance policy will pay for third-party liability (accidental passing away or disability to a person or damage to property) and damage to the insured bike (Under the Own Damage component). A comprehensive policy only partially covers the cost of repairing or replacing depreciable bike parts like rubber, plastic, metal, glass, nylon, or fibre. While adding zero depreciation, two-wheeler insurance ensures you don’t pay additional money when filing a claim. The cost of depreciable parts is entirely covered by Zero Depreciation cover.*
A two-wheeler insurance premium calculator is an easy-to-use tool to check your premium.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
