Check out the benefits of going for zero depreciation bike insurance.
In simple terms, depreciation refers to the loss in value of an asset caused by normal wear and tear over time. Every two-wheeler depreciates over time, reducing the value of your 2 wheeler insurance online claim. To avoid this reduction, an add-on feature called zero depreciation cover can be purchased when purchasing bike insurance. Under this option, you can purchase a cover for vehicles under 5 years old.
Why is there a zero depreciation coverage add-on?
Over time, vehicles lose value due to wear and tear, age, etc. You receive an amount after accounting for the depreciation of the metal and fiber parts in your claim. Coverage with zero devaluation eliminates the need to factor in depreciation. If your bike has damages caused by an accident, zero depreciation 2-wheeler insurance online ensures that you receive your insurer's entire cost of repairs.
Generally, the depreciation of a vehicle's parts will be deducted from Insured Declared Value in the event of a claim. However, remember that you are responsible for these costs. As an exception, if you have the Zero-Dep add-on, you will be covered for all losses without deducting depreciation value. Your 2 wheeler insurance online policy can include zero depreciation coverage as an optional extra. When you file insurance claims, having a zero depreciation cover protects you from being liable for the depreciation amount deducted from the claim.
How it works
As soon as you drive your vehicle out of the showroom, its value decreases. Depreciation occurs due to wear and tear, age, etc., and is caused by general wear and tear. This depreciation will be deducted when your bike insurance claims are processed. This will result in you not getting the full value of your insurance claim, and you will have to make some payments on your own.
A zero depreciation policy is a great additional feature to consider when buying motorcycle insurance, and it is a must if you own a new or expensive two-wheeler. Adding this feature to your bike insurance premium is the only thing you must do because it is an add-on feature.
Why do people opt for zero depreciation cover?
If you have a bike insurance policy that includes zero depreciation, the insurer won't consider the bike's value when settling claims. A vehicle's depreciation is not considered, providing comprehensive financial coverage. Following that, here are a few benefits you can get by choosing a 2 wheeler insurance online policy with zero depreciation:
When you make a claim, it minimizes your expenses.
You receive the actual claim amount following the deductions, so you don't have to worry about receiving a reduced amount.
You can add more coverage to your current two-wheeler insurance policy by doing this.
You can save money with a zero depreciation policy.
Adding this coverage to your policy may not be worth your time when you're insuring your new bike. However, your bike insurance policy benefit can be maximized if you pay a bit more premium in the long run.
As a result of zero depreciation cover, depreciation is deducted. If a claim is paid, depreciation is not taken into account. This add-on provides you with the following benefits:
As a result of this add-on, your primary 2-wheeler insurance online covers are improved.
Depreciation on the insured parts is not considered at the time of claim.
In addition to its benefits, this add-on has a few inclusions and exclusions. Here are some:
Both renewals, as well as new policies, are eligible for the add-on.
The zero depreciation insurance covers plastic, rubber, nylon, and fibreglass parts.
Unless you purchase a new bike or bike with a maximum life of two years, you can only cash out the add-on once a year.
Additional Read:- Top Advantages of Availing a Two-Wheeler Insurance