Zero Depreciation Cover in Bike Insurance

What is Zero Depreciation Bike Insurance?

In standard bike insurance policies, depreciation is deducted from the claim amount, leaving the owner to cover part of the cost. With a zero-depreciation add-on cover, the insurer pays the depreciation cost, providing full coverage for the bike’s parts, including plastic, rubber, and fibre components. This is especially beneficial for new and luxury bikes.

Key Features

1. Full Coverage: Covers the full cost of repairs or replacements without depreciation deductions.
2. Higher Claim Settlement: Ensures higher payouts in case of accidents or theft.
3. Eligibility: Ideal for new bike owners, those in accident-prone areas, or owners of expensive bikes. Typically available for bikes up to two years old.

What is Depreciation Meaning in Bike Insurance?

Depreciation Rates Based on Age

Benefits of Zero Depreciation Coverage

1. Full Claim Amount: Unlike standard policies, zero depreciation bike insurance means no deductions for depreciable parts, meaning you get a higher payout.
2. Covers All Parts: This includes plastic, fibre, and rubber components, often excluded under basic plans.
3. Financial Savings: Reduces repair costs significantly for high-value or luxury bikes with expensive spare parts.
4. Peace of Mind: Ideal for accident-prone areas or new bike owners, this coverage ensures stress-free claims.
5. Flexibility: The add-on can be included during the purchase or renewal of a car insurance policy online or a bike insurance plan.

How is Depreciation Calculated in Bike Insurance?

Depreciation in bike insurance is calculated to determine the current market value of a motorcycle, which affects the Insured Declared Value (IDV) used for insurance coverage.

Here’s how depreciation is typically calculated:

The IDV is calculated by deducting depreciation from the bike's value:

IDV = Manufacturer’s Price - Depreciation Value

For accessories, their value and depreciation are also factored in.

Example: A ₹1,00,000 bike, 2 years old, has a 20% depreciation.

• Depreciation: ₹20,000
• Current IDV: ₹1,00,000 - ₹20,000 = ₹80,000

With Zero Depreciation Add-on, the claim would be settled at ₹1,00,000.

What’s Covered in Zero Depreciation Bike Insurance Add-on?

1. Depreciable Parts: Plastic, rubber, fibre, and nylon components are covered at full value without considering depreciation.
2. Accidental Damage Repairs: Repair costs for damaged parts after an accident are reimbursed fully, without factoring in depreciation.

What’s Not Covered in Zero Depreciation Bike Insurance Add-on?

1. Normal Wear and Tear: Parts that naturally deteriorate over time, like worn brake pads or rust, are not covered.
2. Mechanical or Electrical Failures: Issues like engine breakdowns or electrical failure are excluded.
3. Total Loss or Theft: Coverage doesn't apply to total loss or theft when depreciation is considered.
4. Tyre Damage: Damage to tyres may not be covered, especially in cases like wear or punctures.

In summary, the Zero Depreciation Add-on ensures full coverage for certain parts but does not apply to wear mechanical failures or loss due to theft.

Bike Insurance with Zero Depreciation V/S Without Zero Depreciation

Benefits of SBI General Zero Depreciation Bike Insurance Cover

1. Full Claim Amount: Policyholders receive the full claim amount without depreciation deductions, covering the entire repair or replacement cost.
2. Financial Savings: No depreciation deductions on parts, leading to significant savings, especially for high-value bikes or costly spare parts.
3. Enhanced Coverage for All Bikes: Available for new bikes and bikes up to two years old, offering flexibility for different riders.
4. Peace of Mind: Provides full compensation for damages, reducing worries about depreciation, especially in accident-prone areas.
5. Limited Claims Benefit: Typically allows up to two claims per policy term, promoting responsible usage while ensuring coverage.
6. Add-On Flexibility: This can be added at the time of policy purchase or renewal, offering customisation based on needs.

How to Buy/ Renew Zero Depreciation Bike Insurance Add-on?

Purchasing or renewing a Zero Depreciation Cover for your bike online is straightforward and convenient. Insurers like SBI General have a simple process which you can follow:

• Visit the Provider’s Website: Visit the two-wheeler insurance section on your insurer’s website.
• Opt for the Zero Depreciation Add-On: Select this add-on with a comprehensive bike insurance policy.
• Complete the Formalities: Upload the necessary documents and make the payment. The policy will be sent to your registered email.

SBI General makes the process easy, allowing you to secure full coverage for your bike’s depreciable parts without stepping out of your home.

Who Should Buy Zero Depreciation Bike Insurance Cover?

1. New Bike Owners: Ideal for new purchases, ensuring full compensation close to the original value without depreciation.
2. Owners of High-Value or Luxury Bikes: Protects against high repair costs and expensive spare parts, covering them fully without depreciation.
3. Frequent Riders: Riders who travel daily or long distances, providing peace of mind with minimised out-of-pocket repair costs.
4. Riders in High-Traffic Areas: Beneficial for those in urban areas with frequent minor accidents, helping reduce the financial costs incurred.
5. Inexperienced Riders: New riders prone to minor accidents can benefit from financial protection against damage.
6. Owners Concerned About Future Expenses: Prevents unexpected repair costs as the bike ages, offering long-term financial security.

Which Add-ons to Buy with Zero Depreciation Cover?

1. Emergency Roadside Assistance: Offers services like towing, battery jump-start, flat tyre changes, and fuel delivery to assist during breakdowns.
2. No Claim Bonus Protection: Protects your No Claim Bonus, allowing you to retain discounts even after making a claim.
3. Personal Accident Cover: Provides financial compensation for injuries or death resulting from an accident, ensuring security for you and your family.
4. Engine Protection: Covers damages to the engine due to water ingress or leakage, protecting costly components.
5. Theft Coverage: Enhances theft protection, offering higher compensation limits or extra recovery services.
6. Comprehensive Natural Calamity Cover: Protects against damage caused by natural disasters like floods, earthquakes, and storms.
7. Coverage for tyres and Tubes: Provides full coverage for tyre and tube damage, including punctures, without depreciation deductions.

Things To Consider Before Buying a Zero Depreciation Bike Insurance Cover

1. Age of the Bike: Typically available for bikes under two years old. Older bikes may not qualify.
2. Premium Costs: Zero depreciation coverage comes with higher premiums. Ensure it fits your budget and provides value.
3. Claim Limits: Most policies allow up to two claims per term. Understand the limits before purchasing.
4. Inclusions and Exclusions: Know what’s covered (e.g., depreciable parts, repair costs) and what’s excluded (e.g., mechanical failures, wear and tear, theft).
5. Coverage for Accessories: Check if accessories are included or additional coverage is needed.
6. Type of Policy: Zero depreciation can be added to comprehensive or standalone damage policies. Choose the one that suits your needs.
7. Renewal Process: Coverage must be renewed annually. Assess long-term viability and potential premium increases.
8. Financial Implications: Weigh potential repair savings against the cost of the add-on to ensure it’s financially worthwhile.
9. Insurance Provider Reputation: Research the provider's claim settlement ratio and customer service for peace of mind.

Zero depreciation insurance is an essential add-on for bike owners seeking enhanced coverage and financial security. Whether you're a new bike owner or frequently ride in high-traffic areas, this cover eliminates depreciation-related deductions, providing peace of mind. To enjoy reliable and customer-friendly insurance, opt for SBI General’s zero dep add on cover—a trusted choice for hassle-free claims and comprehensive protection.