Few things can come close to the feeling of riding a brand new bike out on the open road. And as a bike owner, you would want to do everything you can to ensure your two-wheeler stays in prime shape. Afterall, the longer your bike stays in good condition, the more trips and memories you can enjoy with your companion on the road.
However, as we all know, vehicles go through the natural process of ageing through wear and tear from usage. This depreciation impacts the settlement you receive from a claim on your bike insurance policy. The compensation that you receive will be based on the depreciation that your bike parts have gone through. This can see you get lesser of an amount than what you expected or actually suffered losses for.
This is where the zero depreciation cover comes in to help you. This add-on is one of the most valuable covers in bike insurance. If you opt in for this add-on, your insurer will not consider the depreciation that your bike has gone through while settling a claim. Now, if you are hearing about the zero depreciation cover for the first time, you may have certain queries about what this add-on can do for you. To help you out, this article answers 5 common questions on the zero depreciation cover in bike insurance.
- What are the added inclusions to two-wheeler insurance when I buy the zero depreciation cover?
If you sign up for the zero depreciation cover, you receive compensation for all the parts of your bike that undergo depreciation through wear and tear. These include parts of rubber, plastic, fibreglass, glass, and nylon. Without this add-on you would have to pay for these parts out of your own pocket and this can turn into a huge expense during repair. Make sure to read the policy details as the inclusions of the add-on may vary slightly between insurers.
- Should I buy the zero depreciation cover for a used bike?
If you are buying a second hand bike, do note that insurers often place a limit on the age of vehicles that are eligible for this add-on. For instance, most insurers do not offer this add-on for bikes that are older than 5 years. However, you may inquire with your insurer if they will offer this add-on for a bike that is older than 5 years; if yes, it is definitely worth including in your bike insurance policy.
- Are there any exclusions in the zero depreciation cover?
This add-on generally does not provide coverage for mechanical problems suffered by the bike. It may also not cover the tyres and bi-fuel kit. The exact specifications of the exclusions can vary between insurers so, do read your policy document for more information.
- How can I buy the zero depreciation cover?
You can easily opt in for this add-on while buying bike insurance through an agent or online. You can also opt in for this add-on during policy renewal in case you missed out on it the first time. Remember that the zero depreciation add-on is only available with comprehensive bike insurance policies.
- Who is this add-on suitable for?
Any bike owner whose vehicle age is deemed eligible for coverage should buy the zero depreciation cover. For a minimal additional payment in your two-wheeler insurance premium, you enjoy much more coverage. This add-on is particularly useful for those who have just bought a brand new bike or for those who own costly two-wheelers.
We hope that these answers have helped improve your knowledge of the zero depreciation cover in bike insurance. Always renew your bike insurance policy on time and ride safely while abiding by the road rules.