Things about Zero Depreciation Bike Insurance you should Know


Struggled enough with your parents to get that first classic bike? Bikes will never leave their special place in the heart of youngsters. From the daily commute to long-distance rides, bikes soon became the necessity. You must have heard “Look twice. Drive nice.” wala advice nearly a thousand times. Buying a bike has always been a concern for the parents because of the severity of loss it may involve. Since when insurance has gained relevance this advice has taken a step ahead to “Tumhari Zindagi tumhare haath mein hai. Dheere chalana, usi mein samajhdari hai”. So, now the contention is about buying a Bike Insurance with Zero Depreciation.

What is Zero Depreciation Bike Insurance?

A Zero Depreciation Cover is when your insurance company pays the claim without deducting the value of the rubber, plastic, fibre and glass parts. You will not have to spend anything extra than the compulsory deductions under the Bike Policy.

In general, without this add-on cover, your insurance company will apply the deductions as applicable before settling the claim amount.

What is not covered under the Zero Depreciation Cover?

Under the Zero Depreciation rider, if your bike stops due to oil leakage or due to water clogging then it will not be covered.

Who do you think should buy the Zero Depreciation Bike Insurance?

Before you think of buying a Zero Depreciation Bike Insurance, it is important to know that life is precious. So you should not speed too much. Well you should buy a Zero Dep Bike Insurance if you:

  1. Own a luxury bike that has expensive spare parts.
  2. Live in an accident-prone area.
  3. Own a new bike.
  4. Are an amateur rider.

Bike Insurance with or without Zero Depreciation Insurance: Which is better?

To understand which cover is better, you will have to know on what scale does the two types differ.


Particulars Comprehensive Policy with Zero Depreciation Cover Comprehensive Policy without Zero Depreciation Cover
Savings in claim amount There is no deduction on the account of spare parts like rubber, plastics, and glass. There will be deductions on the value of the spare parts, hence you will have to pay the amount deducted from your savings.
Premium The premium for Zero Dep Add-on cover will be higher. The premium will be comparatively lesser.
Amount of payment for the depreciable parts Full Payment for replacement. Partial payment for replacement.


How to Calculate the premium of Zero Depreciation Bike Insurance Policy?

A bike insurance policy is a combination of third party and own damage cover. If you plan to choose both the covers, it is called as Comprehensive bike insurance. Further to extend the coverage, you can add different bike insurance add-ons.

You can calculate the zero-depreciation bike insurance premium using the Bike Insurance Calculator . It provides a complete breakup of premiums for third party cover, own damage cover, bike insurance add-ons and personal accident cover. No claim bonus and any discount on own damage premium is also considered here.

Advantages of a Bike Insurance Policy with the Zero Depreciation Rider

We buy bike insurance to seek possible benefits that fall under the purview of the policy. Right? Bike Insurance policy with Zero Depreciation cover will help:

  1. You to get the exact value of claim amount after the compulsory deductibles are processed.
  2. You will not spend anything on the repairs and hence you save money.
  3. The small claim amounts can also be taken care of.

What would happen if your Bike Insurance does not have a Zero Depreciation add-on?

Suppose you bought a Honda CB Shine after insisting your father in September 2019. Being wise, your father purchased the Comprehensive Insurance for the bike along with the Zero Depreciation cover because you lived in an urban area.

One evening, you took your bike and drove on high speed. You could see the truck coming from the opposite side due to which you applied a sudden brake, you lost control and slipped with your bike on the roadside. Luckily, you were safe but your bike was broken. You called up the insurance company and they helped in towing your bike. They evaluated the damage and estimated the total cost of repair to Rs.10,500/-. The mudguard was broken and the bike lost alignment with some dents on foot guard. Let us see how your bike insurance policy saved you some money at the time of claim.


Particulars Bike Insurance With Zero Depreciation Cover. Bike Insurance Without Zero Depreciation Cover
Policy Premium Rs.4,720 Rs.4,035
Cost of Repair of the depreciable part 0 Rs.2,000
Total Cost of Repairs that insurer will pay Rs.9,900 Rs.7,900
Compulsory Deductions Rs.600 Rs.600
Total money you invested till date Rs.5,320 Rs.6,635


You see just by paying Rs.685/- extra you saved Rs. 1315 (Rs.2000-Rs.685) from your pocket. The values in the example are indicative but it explains that buying a Zero Depreciation cover is beneficial in every way.

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