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 bike insurance, 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.

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.