Zero Depreciation Bike Insurance Online

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Zero Depreciation Bike Insurance

Imagine you bought a new bike last year. One fine day, as you are driving along, minding your own business, someone comes out of nowhere and hits you! Thankfully, no one is hurt but there is substantial damage to your bike. In addition to some denting and painting, the bumper and one headlight unit will have to be replaced.

But you are not worried. You have comprehensive bike insurance, so you know the insurance company will foot the bill for the repair. Imagine your shock when you find out that you’ll have to pay thousands of rupees for the repair! So, what went wrong? Three simple words: zero depreciation cover, or to be more precise, the lack of it. If your policy does not include this cover, the insurance company only pays the depreciated value of the parts to be replaced. Leaving you stuck with a bill for thousands or even tens of thousands of rupees depending on the parts to be replaced!

What is Zero Depreciation Bike Insurance?

Before we explain what zero depreciation means, let’s first learn what depreciation means. Depreciation is the decrease in the value of your bike as it gets older. So, if your bike was worth Rs. 1 lakh when it was new and is worth Rs. 50,000 now, Rs. 50,000 is the depreciation you’ve suffered on the bike.

So, when it meets with an accident and parts have to be replaced, the insurance company pays for the depreciated value of the parts and you have to make up the difference. Because parts are expensive, your bill can easily run into thousands or tens of thousands of rupees!

But if you have zero dep insurance for bike, the insurance company will pay almost the entire cost of the parts to be replaced with nothing (zero) deducted for depreciation. As you can see, not having zero dep cover can prove to be a costly affair.

% of Depreciation in Vehicles

Age of Vehicle

% of Depreciation

Not Exceeding 6 months


Exceeding 6 months but not exceeding 1 year


Exceeding 1 year but not exceeding 2 years


Exceeding 2 years but not exceeding 3 years


Exceeding 3 years but not exceeding 4 years


Exceeding 4 years but not exceeding 5 years


Comparison of Bike Insurance with & without Zero Dep Cover

Bike insurance with Zero dep

Bike insurance without Zero dep

Claim Settlement Amount

This is higher as depreciation is not considered at the time of claim payment

This is lower as the insurer considers depreciation on the parts based on how old the car is

Depreciation on parts


Not covered

Age of car

With this addon, age of the car doesn’t make an impact as depreciation is not considered

The depreciation rates of the parts are decided on the basis of how old the car is

Applicable Rate of Depreciation On Two-Wheeler Parts

Bike components

Depreciation applicable (in percentage)

Nylon/rubber/tyres and tubes/plastic parts /batteries

50 percent

Fibre/Glass materials

30 percent

All other parts made of glass


Benefits of Bike Insurance with Zero Dep Cover

The reason is quite simple. In the unfortunate even of an accident, not having the zero-dep cover can set you back by thousands or even tens of thousands of rupees. But if you have the zero-dep cover, you can rest easy as most of the repair cost will be covered by the insurance company. So, a Zero Dep Insurance for bike ensures that you don’t have a to shell out money from your pocket when you are already in a crisis.

FAQ's related to Zero Depreciation Bike Insurance

What factors affect the zero dep cover premium?

Several factors affect your Zero Dep premium including the age of your car, the make and model of your car, and the location where you are based.

What are the inclusions in Zero Depreciation Bike Insurance?

  • This cover is applicable on both new bikes and renewal of two-wheeler insurance policies.
  • Offers coverage on all rubber, nylon and plastic parts and on all fiberglass components.

What are the exclusions of a Zero Depreciation Bike Insurance?

  • Damages caused due to an uninsured 2-wheeler and normal wear and tear are excluded from the zero-depreciation policy.
  • Damages caused due to mechanical breakdown or to uninsured accessories of the bike are excluded.

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