Though the awareness about 2-wheeler insurance is increasing, many people are still unaware of the finer nuances of it. For example, not many people know that a particularly attractive add-on for a 2-wheeler insurance policy is what is called the zero-depreciation add-on. You have to pay an extra premium for buying this add-on while purchasing your bike insurance policy, but it is worth every penny of it because in the unfortunate eventuality of an accident, say, a few years down the line, the value of your bike will be calculated without factoring in its depreciation. This add-on is very useful, particularly for bikes which are very expensive, sturdy and with good expected longevity.
Use-Case Scenario of a Zero Depreciation Cover
You can avail zero depreciation if you have bought this add-on with your 2-wheeler insurance policy in the following scenarios:
- If your bike is not more than two years old.
- Normally a policyholder can claim up to 40 percent of the IDV, or the insured declared value, but if you have bought the zero-depreciation add-on, you can claim the full value of the bike.
- You can claim zero-depreciation only during the tenure of the policy or one claim per year in case of a multi-year 2-wheeler insurance policy.
- This zero-depreciation add-on is applicable only to specific high-end bikes.
Salient Features of a Zero Depreciation Cover
- You can buy this zero-depreciation 2-wheeler insurance policy add-on while purchasing your policy at the first instance, or while renewing your policy but not if your bike is more than two years old.
- This zero-depreciation add-on will cover all components of your bike, even those made of plastic, rubber, nylon or fiberglass.
- Normally the depreciation of a two-wheeler ranges between 0-40 percent of the bike’s original value, but if you have purchased the zero-depreciation add-on while purchasing your 2-wheeler insurance policy, you can claim the original invoice value of your bike in the case of any untoward eventuality.
- However, this zero-depreciation add-on can only be purchased for bikes which are less than two years old and for high-end models which are expected to last many years without much wear or tear.
- Most insurance companies will limit your zero-depreciation claims to one per year.
- Probably the only downside of this very attractive 2-wheeler insurance cover is that you cannot claim it in cases of a mechanical breakdown, or in scenarios which are not explicitly included in your 2-wheeler insurance policy. Also, remember that parts susceptible to normal wear and tears like gas kits or tires are not covered in the zero-depreciation add-on.
In conclusion, it is fair to say that purchasing the zero-depreciation add-on while purchasing your 2-wheeler insurance policy is highly recommended as once you have done so, you can rest easy in the knowledge that normal depreciation is not going to affect your insurance claims in case of an accident. You may want to check out one of the most attractive 2-wheeler insurance policies on the market, offered by Bharti AXA.
