What is zero depreciation bike insurance

zero depreciation


zero depreciation cover is the add on with which you get insulation against the depreciation amount that is deducted when you register an insurance claim.

 Depreciation is the decrease in the value of a bike as it gets older. So, if your bike was worth Rs. 1 lakh when it was new and is worth Rs. 50,000 now, Rs. 50,000 is the depreciation you’ve suffered on the bike.

The process of losing the value of a Two Wheeler in terms of money over a period of time due to factors such as age, wear and tear etc is commonly known as depreciation for bikes.

At the time of filing a claim, people end up paying a good sum of the overall cost due to depreciation deduction. A zero depreciation cover helps in situations like these. It provides a comprehensive coverage without fa consideration for depreciation. For example, if your bike was involved in road accident and hence suffered damages due to the collision, your insurance provider will cover the entire cost of the losses incurred when you file a claim.

What is zero depreciation bike insurance

Key benefits of opting for zero depreciation cover

Most claim settlements looks of no use to the customers as they observe deductions in actual loss amount assessed. A major deduction isdue to depreciation charged on parts requiring replacement after an accident. By chossing a zero depreciation bike insurance​ you can avoid this concern. There are various other benefits of availing the zero depreciation add on cover:

  • You have a sense of security and complete peace of mind after opting for the zero depreciation bike insurance.
  • There is no worry regarding the protection of your vehicle
  • Your out-of-pocket expenses are low to a bare minimum if you sign up for a zero depreciation cover.
  • Zero depreciation cover adds value to the basic cover.
  • Depreciation is not taken into consideration while settling claims for insured parts of the vehicle.


you must also keep in mind that zero depreciation is an additional benefit (add-on) that can be availed by paying an extra/higher premium. The premiums are calculated based on the vehicle’s model, its age and the location you’re based out of. The zero depreciation cover is generally not a part of the standard two wheeler insurance policy.


What is included in zero depreciation insurance ?

Let’s go through the conditions that are included and excluded from a zero depreciation cover:

  • Zero depreciation cover is applicable on both new and renewal of two wheeler insurance policies.
  • zero depreciation insurance Offers coverage on all rubber, nylon and plastic parts and also on all fiberglass components.
  • The standard depreciation rate in two wheeler policies vary between 0% to 40% but with a zero depreciation plan, you can claim the full amount.
  • The zero depreciation add-on cover is designed for new bikes or bikes with a maximum age of up to 2 years. It is valid for up to 2 claims during the term of the policy or 1 claim annually. The clause regarding the limit on the number of claims can vary from company to company.
  • It is valid for select makes and models so, read your policy carefully.
  • Damages caused due to an uninsured normal wear and tear are excluded from the zero depreciation policy.
  • Damages caused due to mechanical breakdown or to uninsured items such as bi-fuel kit, tyres and gas kits are excluded from the zero depreciation policy.
  • Policyholders must renew the zero depreciation cover annually to continue enjoying its benefits. This add-on cover is best suited for people with luxury bikes, new drivers, owners of a bike with expensive spare parts, people living in accident-prone areas etc.