Team AckoSep 20, 2021
Many different options are available when you set out to buy a bike insurance policy. Each provides useful coverage. One of the most popular motor insurance plans is a Comprehensive Policy with Zero Depreciation add-on cover. Selecting the right plan from the multiple options can be confusing for you. So, in this article, we will talk about the benefits of buying the Zero Depreciation add-on, how it enhances the coverage and most importantly is it really worth the additional premium? Read ahead to know more.
A Comprehensive Two-wheeler Insurance Policy is a standard plan that offers coverage for Third-party Liabilities and Own Damage. Confused? In simple terms, if your insured bike damages someone else’s property or causes injuries (covers death as well) to someone else, then you are covered under the Third-party Liability plan. In India, it is compulsory to own this basic plan while riding your bike.
On the other hand, if your insured bike gets damaged due to accidents, fire, man-made calamities, natural calamities, or even if your bike gets stolen - all this is covered under the Own Damage plan. Comprehensive Bike Insurance policy offers both coverages to ensure you get all-around insurance that fulfils the mandatory aspect and financial protection against bike damages.
Note that buying a Comprehensive Plan is not compulsory but rather a logical choice to get holistic coverage.
Zero Depreciation Bike Insurance is not a plan, it is an optional add-on cover. Add-on covers are additional coverages available with a Comprehensive Bike Insurance policy. Zero Depreciation add-on, covers the cost of depreciation on your bike in case you raise a claim for damages.
Here, insurance companies (say ACKO) will consider depreciation on your bike. Depreciation is a reduction in the value of your bike due to wear and tear with time. Since insurers consider depreciation, this reduces the claim amount. But with a Zero Depreciation add-on for bike, you can claim the full amount (apart from deductibles) without factoring in the depreciation on bike parts. It is important to note that you can only purchase this add-on cover only if you have purchased a Comprehensive policy.
Take a look at the following table to understand how this add-on can make a difference in a basic Comprehensive plan.
|Factors||Comprehensive policy||Comprehensive plan + Zero Dep add-on|
|Cost of insurance||More than the basic Third-party Bike Insurance policy||Higher than a Comprehensive Bike Insurance plan|
|Coverage||Covers third-party liabilities, loss due to theft, fire damage, total loss, natural and man-made calamities, accidents, etc.||No depreciation on bike parts in case of damage from accidents or other situations as per the coverage|
|Claim settlement amount||Lower||Higher than standard Comprehensive plan|
|Age||As long as the insurance plan is active||Available for bikes aged below 5 years. Coverage for bikes aged more than 5 years is mutually decided between the bike owner and the insurer.|
|Type of bike||All||Usually, new bikes are covered|
|Depreciation on bike parts||Not covered and must be borne by the bike owner||Covered and will be borne by the insurance company|
A bike insurance add-on must be included in a Comprehensive policy only when it seems useful to the bike owner. This goes for buying the Zero Depreciation add-on as well. The bike owner must weigh different options and scenarios before making the final decision of adding the Zero Depreciation add-on to the bike insurance plan. It is more advisable to go in for a Zero Depreciation add-on if you are in the following situations.
You own a brand new bike
The cost of the bike is more, for example, you own a high-end model and the parts are expensive
You often park the bike on the side of a road with higher chances of accidents
You have less experience in bike riding
If small dents or minor damages bother you
You want to reduce out-of-pocket expenses during claim settlement
Also, read: Things You Didn't Know About Bike Insurance
A Comprehensive Bike Insurance policy adds a blanket of financial protection if ever the bike suffers damage. Moreover, strengthening Comprehensive Insurance with a Zero Depreciation add-on provides an additional layer of protection when you raise a claim. The best part about this add-on is, it can increase your claim amount by escaping depreciation cutbacks. Thus, if you notice that the Zero Depreciation add-on is available for purchase when you buy or renew the insurance plan, then you must definitely consider opting in.
When you buy on ACKO, everything gets simple. You just have to visit the website or download the app, answer a few questions related to the bike and previous policy to get your vehicle insured. Plus, you can also customise Comprehensive Bike Policy with the help of add-ons (such as Zero Depreciation and many more exciting covers) at the tap of a button. You don’t have to indulge in any paperwork or exhaustive form-filling while insuring your bike.
Here we have answered some common questions related to Comprehensive Bike Insurance and the Zero Depreciation cover. If you have more queries, get in touch with us by sending an email at [email protected]
Does the premium increase while buying the Zero Depreciation bike insurance plan?
Yes, since this is additional coverage available with a Comprehensive Bike Insurance plan, the insurance company provides more coverage at an additional premium amount.
Is the Zero Depreciation cover included in a Comprehensive Bike Insurance policy?
No, Zero Depreciation is a bike insurance add-on that you can buy to enhance the coverage of your Comprehensive Bike Insurance policy. You need to pay an extra premium for this cover. But this amount is negligible as compared to the coverage you get at the time of claims.
How to buy the Zero Depreciation add-on?
You can buy the Zero Depreciation add-on while buying or renewing your Comprehensive Bike Insurance policy, provided your insurance company is offering this cover. If not, then you can speak to the insurer and get the add-on.
I had purchased my bike insurance policy from a dealer. How can I check if I am covered with a Zero Depreciation add-on cover?
You must go through your Bike Insurance policy document to know the coverage of the plan. If you have this coverage, you will see a component called "Zero Depreciation" in the coverages table.
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