We all want to protect the things that we love, it’s human nature and especially if it’s your two-wheeler that you’ve just recently bought! Imagine if there was something that could ensure that the things dearest to us always stayed as good as new.

Of course, magic doesn’t exist but in comprehensive bike insurance, we have something called the zero depreciation cover, and that kind of aims to do something like that. To keep your bike as good as new, as young as it was when you just got it. Think of it as your bike’s very own anti-ageing cream. Don’t get it? Hang on, we’ll explain.

Zero Dep insurance for bike add-on cover, also known as bumper-to-bumper or nil depreciation cover, available with a comprehensive or own damage insurance policy, ensures that you get the complete claim amount.

If you have this add-on cover, the insurer will not deduct the depreciation amount on the assessed two-wheeler parts as per the policy document, so in simple words, your bike will remain as good as new.

However, remember that the zero dep bike insurance benefits can only be utilized up to a specified number of times during the policy period.

Is Zero Depreciation a Policy Type or an Add-on?

Zero dep is an add-cover that can be purchased with comprehensive and own damage bike insurance policy, rather than a standalone policy type. It allows policyholders to claim the full cost of depreciated parts of a two-wheeler.

Is Zero Depreciation Add-on Cover Available for All Types of Vehicles?

Zero dep bike insurance is available for most types of vehicles; however, it comes with certain conditions. Most insurers do not offer zero depreciation add-on for vehicles older than 5 years, as depreciation is more significant in older vehicles.

Check: Use Bike Insurance Calculator to calculate the premium with different add-ons.

Before we explain what zero depreciation means, let’s first learn what depreciation means. Depreciation in bike insurance comes into play when you make a claim for damage to your two-wheeler.

It refers to the decrease in the market value of a two-wheeler over time due to its natural wear and tear. Thus, the older your bike, the higher is its depreciation, implying that the owner will have to bear the cost of depreciation.

So, if your bike was worth ₹1 lakh when it was new, after 2 years its worth will reduce to ₹70,000. This implies that you suffered a depreciation of ₹30,000 on the bike.

Here's why you should get zero dep bike insurance add-on:

• It helps you maximize your savings during bike insurance claims as you won’t be spending much from your pocket.
• You get the benefit of getting the full claim amount (after compulsory deductions), since your insurer will no longer subtract your depreciation from your claim amount.
• The add-on acts as a layer of protection for your new bike and its expensive spare parts.
• It acts as an enhanced financial protection cover on your existing bike insurance policy.

Here are the zero dep bike insurance depreciation rates fixed by IRDAI, on the basis of which the total depreciation of your two-wheeler is calculated:

Depreciation Rate in Two-Wheeler Vehicles Based on Age

Depreciation Rates for Different Parts in Two-wheeler Vehicles

The cost of zero dep bike insurance cover depends on various factors such as the two-wheeler's model, make, policy premium, age of the vehicle, depreciation on bike parts, etc.

The cost of zero dep in bike insurance makes sense only if your vehicle is comparatively new or has expensive bike parts, as then you get back the cost of depreciation on your bike parts. However, if the two-wheeler is older than 5 years, spending extra on zero dep add-on cover may not be a good decision.

Following things are covered under zero depreciation add-on cover:

• Compensation for depreciable bike parts i.e. nylon, rubber, fiberglass and plastic parts at the time of claim settlement.
• Your zero-depreciation cover is applicable on all your bike insurance claims, as long as your bike insurance is valid.
• The number of claims allowed under zero dep bike insurance vary based on the insurance company.

Under Zero Depreciation add-on cover, certain things in addition to the general exclusions listed under two-wheeler insurance are not covered, such as:

• If the bike insurance policy has expired.
• If the damage caused to the two-wheeler can’t be inspected before it is repaired, the claim will not be filed.
• Loss claimed for damage caused to the covered vehicle under different types of insurance policy.
• A claim will not be payable under Zero Depreciation add-on if it is not covered under OD section of the policy.
• If there is a delay of more than 30 days since the damage was caused.
• Zero dep insurance for bike is not applicable to parts like battery and tyres of the insured vehicle as per the policy.
• Damage caused due to mechanical faults.

1. Third-party Liability Plan

Third-party bike insurance policy is one of the most common types of motor insurance that covers damages and losses caused to a third party, including injury, death, or property damage, due to an accident involving your vehicle.

It is mandatory by law in India and the third-party premium is predetermined by the IRDAI.

2. Comprehensive Insurance

Comprehensive bike insurance plan covers both third-party liabilities and damage to your own two-wheeler as well. It also allows you to purchase various add-ons with it to help enhance your bike insurance coverage.

3. Standalone Own-Damage Insurance

This plan covers damage to your own insured two-wheeler due to accidents, theft, fire, natural disasters, and other unforeseen events. It does not cover third-party liabilities; however, it works as an added protection with the third-party car insurance policy.

Repair Cost Table

If you are in any of the following categories, it is best to buy a zero dep insurance for bike.

• If your two-wheeler is not older than 5 years.
• If you live or drive frequently in an accident-prone area.
• If you have recently learned to ride a bike.
• If you cannot bear the sight of small dents and bumps on your two-wheeler.
• If you own a new/luxury bike or have expensive spare parts.
• If you wish to reduce your out-of-pocket expenses in case of any damage.

• Zero dep insurance for bike add-on cover will not be valid once you have claimed for the specified number of times as mentioned in the policy document.
• The add-on covers only the cost of your two-wheeler's part depreciation at the time of filing claim and doesn’t cover your compulsory deductibles.
• Claims made by the insured under zero depreciation bike insurance add-on are subject to the terms and conditions of your two-wheeler insurance policy.

Thus, you can enhance the benefits of your standard two-wheeler insurance policy by opting for zero depreciation add-on cover, as it will help you get the full claim amount without considering the cost of depreciation.