What is Zero Depreciation Bike Insurance

What is Zero Depreciation Bike Insurance

This is known as depreciation. When a claim is made due to zero depreciation individuals pay an immense amount of entire amount out of their pockets Zero depreciation bike insurance offers an extensive and complete insurance coverage , without incorporating the depreciation. In the event that the bike involved was in an accident and sustained significant damage as a result of collision and you own zero depreciation insurance, the insurance company will pay the total cost of the damage. Zero depreciation insurance for bikes is more expensive than regular bike insurance policy to provide the additional protection.

Zero depreciation is available for newer bikes insurance, and the coverage can be purchased for an duration of 2 up to five years. Also, there is a limit on the amount of claims per year that varies between companies. The damages resulting from mechanical breakdowns or wear and tear are not covered from zero depreciation bicycle insurance. Zero depreciation insurance for bikes is ideal for riders who own expensive bikes, spare parts, an area or travel route that is prone to accidents, beginners or new bikes.

Depreciation in Bike Insurance

What is Zero Depreciation Bike Insurance
What is Zero Depreciation Bike Insurance


The costs of repair or replacement of a bike’s steel nylon, plastic rubber, and other parts that are depreciable are not covered fully. The depreciated value of such components must be paid by the insured when they make claims.

The amount of depreciation the policyholder has to pay will vary based on the kind of material. The table below illustrates the percentage the policyholder pays in the event of repair or replacement in the event of a claim:

Take a look at a scenario in which there is a need to replace the nylon parts of the bike. The first 50% of the expense will be covered by the insurance company , and the remaining cost is paid by the owner of the policy.

But…if you own an add-on for zero depreciation and you’re not required to shell out a dime for depreciable items.

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Learn the distinction between a comprehensive policy and zero depreciation insurance on a bicycles

Here’s a table that demonstrates clearly the difference between a comprehensive policy that includes and does not include a zero depreciation added-on coverage.

The difference between a comprehensive policy with zero dep and one that does not have zero dep

Take a look at a bike that has an IDV of the price is Rs. 58,870. The price for a complete policy is at. 1,285 while a comprehensive policy that has no depreciation is at. 1,635 (i.e. only 350 extra. 350 extra).

The total repair costs come to around Rs. 4000, including repairs and replacement of depreciable components at Rs.800.

Here is the true benefit of the zero depreciation protection in the bike insurance the picture. You can see how the zero depreciation insurance can help save cash during claims because insurance companies cover the depreciable cost of components.

The above example illustrates savings of Rs.450 The figures shown are only indicative and may fluctuation based on various variables.

What happens to a policyholder of a bike insurance plan that has no dep add-on gain?

  • Repair or replacement costs for depreciable items is covered completely. Therefore, the out-of-pocket costs are reduced to a minimum minimal amount.
    • Completely pay repairs to your garage when you claim.
  • You should consider buying a new bike if have a brand new and expensive bicycle.
  • It is recommended to buy one if you don’t want to wind up having to pay hefty garage expenses related to repairs or replacement of parts that are depreciable when you the claim.
  • You should consider buying a bike if are a fan of your bike and would like to save some money.

Here’s an overview of the limitations under a zero-depreciation motorcycle insurance policy:

  • Wear and tear on the depreciable components of the bike caused by age is not covered.
  • Damage resulting from an uninsured incident.
  • Damage to objects that are not covered such as bi-fuel kits or gas kits.
  • Damage caused by an engine failure.

Additionally, a zero-depreciation coverage is offered for bikes with a lifespan of between 2 and 2 years. Maximum 2 claims can be allowed during the policy time.

To purchase or not purchase a zero-depreciation protection is a query that every bike owner asks themselves. All bike owners who are passionate about their bikes and want to save money should opt to purchase a zero-depreciation insurance policy when purchasing the bicycle insurance policy.

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