Zero Depreciation Bike Insurance

Starting at only ₹1.5 per Day*

Two wheeler Insurance banner image
Enter Two Wheeler number to get Quote
By proceeding you agree to Terms & Conditions
Proceed without Two wheeler Number
  • compare buy Compare and buy at best price
  • instant policy Instant Policy Issuance
  • no unwanted calls No unwanted calls. We promise!
*T&C Apply  *TP premium only 

Zero depreciation or the ‘Nil depreciation policy’ is an add-on that permits the policyholder to claim the complete expenditure incurred at the time of repair of one’s damaged bike. The insurance company guarantees that the wear and tear costs i.e. the depreciation costs of the bike are not deducted from the final claim settlement amount.

Jaya is really happy that she purchased a zero depreciation cover for her brand new two-wheeler. She met with a minor accident and her insurance company is processing her claims to give her the whole amount without any depreciation costs being deducted. Wish to receive that same comfort and security that Jaya has? Read on to know-how!

The Insurance Regulatory and Development Authority of India (IRDAI) has assigned rates of depreciation for different parts as follows - 

Bike partsPercentage deducted as depreciation
Parts made out of glassNil 
Fibre or glass components30%
Plastic, nylon and rubber parts50%

The overall depreciation factor based on the age of the bike, as outlined by the IRDAI is – 

Age of the bikePercentage of depreciation for fixing Insured Declared Value
≤ 6 months5%
6 months – 1 year15%
1 year – 2 year20%
2 year – 3 year30%
3 year – 4 year40%
4 year – 5 year50%

In the presence of the zero depreciation add-on, one can save all the amounts that are highlighted above.

Features & Benefits of Zero Depreciation Cover 

  • Enhances coverage and secures the bike more holistically.
  • Full compensation for the damage suffered at the time of final settlement.
  • Some insurance companies offer coverage for key replacements, roadside assistance, towing assistance, regular maintenance etc.
  • The add-on comes at an affordable price. It helps the bike owner to save on some money.

What is Covered?

The following is covered under the zero depreciation cover – 

  • Losses incurred due to depreciation of parts such as nylon, rubber, fibreglass etc.
  • Cost of replacement and repair of parts as mentioned in the policy.
  • Losses incurred due to partial damages to battery and tyres without subtracting depreciation.

What is not Covered?

The standard exclusions under this policy are as follows – 

  • Damages caused to uninsured bike parts namely, tyres, gas kits, fuel kits, etc.
  • Damages caused due to mechanical faults.
  • Cases of total damage or loss to the vehicle.
  • Losses incurred to uninsured perils.

Who Should Buy Zero Depreciation Add-on Cover?

  • Bike owners whose vehicle is less than 5 years old.
  • Bike owners who wish to save on depreciation costs and wish to derive maximum benefit from their policy cover.
  • Bike owners who live in accident-prone areas hence higher chances would be of claim. This is where a Zero Depreciation Cover would be helpful for them.

How Zero Depreciation Cover is Better Than a Normal or a Comprehensive Two-wheeler Policy?

BasisZero depreciation coverNormal cover
Claim settlementFull compensation will be provided to the policyholder in case of a zero depreciation coverThe claim amount is received after standard deduction of depreciation
PremiumThe premium amount will be higher than the normal insurance cover.

The premium paid will be of a lesser amount.

Repairing costsThe repairing costs of fibre, glass, rubber, and plastic parts are borne by the insurer in case of zero depreciation cover.The repairing costs have to be borne by the policyholder.
Age of the carMeant for new cars as the policy usually covers two claims during a policy term for cars up to the age of 5 years only.

Meant for cars that are older than 5 years.

Limit on the number of claims in the termUsually, a cap of 2 is placed for making claims.No such limit exists.

Factors to Keep in Mind Before Choosing Zero Depreciation Cover  

  • It should not be the enabling factor for careless driving.
  • It does not cover the car in case of total loss such as theft.
  • The cap on the number of claims that can be filed in a year depends on the bike insurance company.
  • This cover is available for designated two-wheelers having own damage or comprehensive policy.

Zero Depreciation Cover Bike Insurance FAQs

  • 1. What are the factors that affect zero depreciation cover premium?

    The age, make and model of the bike, place of registration are some of the factors that affect the premium. 

  • 2. Can one purchase a zero depreciation cover for a third party insurance cover?

    No, a zero depreciation cover can be availed only with a comprehensive or standalone own-damage policy.

  • 3. How many times can a zero depreciation claim be made?

    You can make the claim twice in a single policy year, but this can depend on the add-on or insurance provider so do read the fine print. 

  • 4. Should I buy a zero depreciation add-on if my bike is 6 years old?

    No, this add-on can only be availed for bikes up to 5 years old. 

Recent Articles

View All

3 Ways to Check Your Bike Insurance Expiry Date Online 

Check out the top 3 easy ways to find the expiry date of your bike insurance and renew it online.

Read More

How to Re-register Your Two Wheeler in India?

Know how you can process of re-registering your two-wheeler in India. Check complete details here.

Read More

Online v/s Offline Bike Insurance

Are you confused between online and offline bike insurance? Know here which bike insurance would be easy and s...

Read More

How Installing Anti-Theft Devices Help You Get Discounts In ...

The insurance company offers a discount on bike insurance premium on installing an ARAI ceritified anti-theft ...

Read More

How to Choose the Best Bike Insurance?

Choosing the best bike insurance is not a hassle now as this article will help you buying the best bike insura...

Read More

How Relocation Affects Bike Insurance Premium

People living in Zone A cities need to pay extra premium as compared to people in Zone B cities. Read the arti...

Read More

Anti Theft Device Discount in Bike Insurance

Did you know installing an anti-theft device can help you get discount on bike premium?Know everything how abo...

Read More

Bike Insurance Do's and Don'ts for New Bikers

Know do's and don'ts for new bikers before purchasing the bike insurance online.Keep these crucial pointers in...

Read More

How Modification Can Affect Your Two Wheeler Insurance?

Minor change would increase your bike insurance premium. Learn more about the types of two wheeler modificatio...

Read More