There is a notion about choosing the right two-wheeler insurance plans as a confusing process. While a newbie may find it confusing, a little knowledge will help in easing the selection process.
This selection is further eased by adding the right add-ons to your policy. It can be selecting a no claim bonus protector, or roadside assistance cover or more. But one such cover that you definitely should not miss is a zero depreciation cover. This add-on is often bundled in most plans and called as a ‘zero dep policy’.
Depreciation of the vehicle causes it to lose its value over time. At the time of making a two wheeler insurance claim, a significant amount is borne by the policyholder due to depreciation. The claim is sanctioned only for the amount of repairs after deducting the depreciation.
At such times a zero depreciation cover comes handy. Zero depreciation cover ensures the policyholder receives the full amount of claim without accounting for depreciation. Say, for example, your bike suffered damages in an accident, and you file a claim. The insurance company will reimburse the entire amount of damages as per the policy terms and conditions.
Here are a few key benefits of availing a zero depreciation cover –
- Most insurance claims are minimal for the policyholder. The primary reason is depreciation. Once depreciation is accounted on the spares, the reimbursement is minimal.
- By availing a zero depreciation add-on, you can avoid substantial deduction from your claim amount. Moreover, you have a complete peace of mind knowing that the claim will be accepted in full, and there will be no depreciation for spares.
- Your out-of-pocket expenses are limited to the compulsory deductible of your policy.
- This benefit is available at a fraction of the premium
Now that you know the various benefits, you should compare two wheeler insurance plans before zeroing down. Moreover, other necessary add-ons should be considered when purchasing a two-wheeler insurance policy.
Let us look at the common inclusions and exclusions under your two-wheeler insurance policy –
The parts made of rubber, nylon and plastic are covered under your zero depreciation add-on. Further, a few vehicles also use fibreglass, which is also included in the policy coverage.
This add-on is generally not available for two-wheelers which are more than two years old. The cover does not apply in case of theft or case of complete damage to your vehicle. The maximum number of claims permitted under this coverage is limited to two per policy-year. However, this number differs among each insurance company. Further, some insurers have the requirement of repairing your two-wheeler at authorized network garages for availing the benefit of zero depreciation insurance.
This way, zero depreciation add-on not only saves your out-of-pocket expenses, but also ensures you get the maximum benefit from your insurance plan. Don’t forget to make use of a two wheeler insurance premium calculator. This calculator facility will assist in estimating the premiums and comparing the various policies with the necessary add-ons. Make sure you continually renew your insurance using a zero depreciation cover. Ride safe and stay insured!
