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When you buy bike insurance, there are a couple of things you might think about. First and foremost, and quite obviously, you check out the amount of premium you would be shelling out for insuring your precious two-wheeler ride. When you buy a new bike, most often than not, you go with the two wheeler insurance cover that is being offered by the vehicle dealer. Also, when the time comes for renewing your existing two wheeler insurance cover, high chances are you continue with the same bike insurance provider since you are more worried about missing the deadline for renewal.
However, while you are renewing or buying a new two wheeler insurance cover, it makes sense to think to think about a feature called as “Zero Depreciation Cover”. Let’s find out why –
What is Zero Depreciation insurance cover?
To begin with, zero depreciation is also called as ‘nil depreciation’ or sometimes even referred simply as ‘nil-dep’. Nil depreciation offers protection or coverage against a reduction in the asset value of a two wheeler. For instance, you have a bike purchased in 2010. The value of this bike will go down as the years roll on. All two wheeler insurance providers take into consideration the depreciation factor during claim settlements. They will deduct the depreciation figure from the claim compensation that may leave you with significantly lower benefit. If you have a zero depreciation bike insurance cover, you need not worry about this since the depreciation amount won’t be deducted from the claim settlement you are entitled to. This will ensure that you get the maximum benefits out of your bike insurance cover.
Eligibility to avail zero depreciation cover
The zero depreciation cover looks quite promising, doesn’t it? But there’s a catch. There are certain conditions that need to be fulfilled in order to be eligible for the cover. Let’s take a look –
- Your bike or two-wheeler must not be more than two years old.
- In case your bike is totally damaged, you cannot claim zero depreciation cover
- Zero depreciation is not applicable if your two-wheeler gets stolen
- You can only claim this benefit twice during the policy period
- The two-wheeler must be taken to any of the garages that have a tie-up with the insurance provider for repair.
Features of zero depreciation cover
Now that we know the conditions for getting a zero depreciation cover, let’s check the overall features and benefits that are on offer. This will help you gauge the viability of availing this add-on insurance cover.
- All the plastic, rubber and nylon components are covered along with fiberglass parts
- Most bike parts associated with wear and tear are covered with zero depreciation
- Your out-of-pocket expenses for the two-wheeler become almost nil
- You secure peace of mind since there is no deduction in the claim amount
- This add-on cover offers great value to your standard bike insurance cover
This was all about the zero depreciation cover that enhances your bike insurance cover to the maximum.