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What is Zero Depreciation in Two Wheeler Insurance?

Depreciation refers to the decrease of value of assets. There are some assets which appreciate, or increase their value over time. These are assets such as land and property. However, two wheelers value depreciates over time. This is disadvantageous for owners of two wheelers taking insurance.

Zero Depreciation in Two Wheeler Insurance

With the usual passing of time, a two wheeler goes through unavoidable wear and tear. The cost of maintenance and repair can be quite a costly affair for two wheeler owners. However, zero depreciation in two wheeler insurance can protect customers from depreciation factor when filing in a claim. There are several benefits that benefit policy holders when opting for a zero depreciation or Nil depreciation cover.

At the time of filing a claim, two wheeler owners end up paying a large sum of money extra on the overall cost in order to cover up the depreciation deduction.

What does a zero depreciation policy cover?

  • Coverage on plastic
  • Rubber
  • Fibreglass parts
  • Nylon
  • Available on new as well as renewal of old policies
  • The policy is designed for old and new bikes of a maximum age of up to two years

What things do a zero deprecation policy not cover?

  • Damage on the bike due to uninsured peril
  • Damage on the bike due to mechanical breakdown
  • Normal wear and tear
  • Damage on the two wheeler items that are uninsured; such as tyres, gas kits and bi fuel kits.

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What sort of two wheeler owners should opt for a zero depreciation policy?

  • New drivers
  • People owning luxury vehicles
  • Those riding in accident prone areas
  • For those having a vehicle with expensive spare parts

What kind of factors affect your zero depreciation policy?

  • The age of your two wheeler
  • The location in which the owner is based
  • The model of the two wheeler

What are the conditions on which an owner can apply for a zero depreciation policy?

It is important for every individual to read the policy documents very minutely. You must read the wordings very carefully and understand the terms of your policy. These are the basic conditions that come with a zero depreciation cover policy:

  • If the two wheeler is damaged completely or stolen, then the zero depreciation policy is not applicable.
  • If the two wheeler has suffered from damage, the repairs must be done from a garage which is partnered with the insurer.
  • The zero depreciation policy can be availed only twice during the policy cover.

What are the benefits associated with a zero depreciation policy?

  • Your two wheeler is completely protected after opting for a zero depreciation policy.
  • A zero depreciation cover adds value to the basic cover of your two wheeler
  • An owners out of pocket expenses can be reduced to a minimum when he opts for a zero depreciation cover policy.
  • No cost of depreciation will be charged when a two wheeler owner makes a claim
  • The depreciation value of your two wheeler will not be considered when you go for claims.
  • Your investment in your two wheeler is made almost nil
  • The zero depreciation policy cover adds more value to the basic two wheeler insurance cover.
  • A two wheeler owner can enjoy a safe, protected and peace of mind experience after opting for a zero depreciation policy cover.

It is extremely important in this day and age to opt for a zero depreciation policy cover for their two wheelers. With the rising expenses of two wheelers and the cost of maintenance and repair, a zero depreciation policy cover can greatly be advantageous to policy holders as it will save them a lot of expenses. The two wheeler owners can also save out of pocket expenses as well as get a greater cover value on their two wheeler.

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