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5 Compelling Advantages of Opting for Zero Depreciation Add-on Cover for Bikes

By Juhi Walia
22 July 2022, 10:39 AM

Depreciation implies reducing the bike’s purchase value due to age or its used condition. Regular use of the bike over time induces wear and tear in spares. Depreciation has an adverse impact on the insurance claim settlement value if the bike meets with an accident. However, if you opt for a zero depreciation two-wheeler insurance add-on, along with your regular bike insurance plan, you will not have to worry about depreciation-driven loss.

Top Advantages of Zero Depreciation Insurance Add-on for Bikes

Zero dep bike insurance add-on offers stellar protection against damages caused to bikes by unforeseen and unpredictable incidents on the road. It provides many benefits, which have been discussed below.

Better Settlement Value for Insurance Claims

If you have registered a claim under a comprehensive bike insurance policy with your bike insurance company, you may not get a full settlement of the claimed value. This will happen even if the insurer’s surveyor certifies the total value incurred by you on bike repairs.

During claim settlement, under ordinary two-wheeler insurance, the insurer first calculates the value by which the repaired components of the bike have depreciated since the bike was purchased. The depreciation rate will vary based on bike models, age, condition, and other factors.

With zero depreciation:

  • The depreciation factor is eliminated, and then the insurance payout is calculated.
  • Claim settlement value will always be more than comprehensive bike insurance.

This implies that only compulsory deductions are made, and the remaining claim amount is fully paid. You need not pay anything out of your pocket, which will be a huge monetary relief.

Optimum Return in the Long Run

Zero dep insurance for bikes is an add-on. Hence, you need to pay slightly more to buy this, over and above the comprehensive plan. This discourages many bikers from opting for it.

If you evaluate the benefit of the bike insurance add-on from a long-term perspective, you will find that the returns exceed the nominal investment.

  • Significant increase in the scope of coverage
  • Faster claim settlement
  • No additional expense from your pocket

You will be under tremendous emotional and mental strain if an unfortunate incident involves your bike. This is when the add-on will prove to be your true friend.

Expensive Bike Components Can be Repaired or Replaced Free of Cost

If your bike’s costlier components get damaged during an accident, you will have to bear the majority of repair or replacement costs despite having a comprehensive policy. This is bound to take a toll on your financial health.

With a zero depreciation cover, the complete cost of the repaired component will be reimbursed. If the damage is beyond repair, a replacement will be done free of cost.

Additional Coverage for Your Bike’s Body Parts

A standard bike insurance policy does not compensate for damages to the below-mentioned bike parts :

  • Plastic parts
  • Nylon cover
  • Fibreglass components
  • Rubber elements
  • Tyres
  • Battery

Depending on the insurer, the zero dep cover will be offered for the items mentioned above. This added advantage will keep you monetarily insulated from any extra expenditure after an incident.

Host of Other Benefits

Zero depreciation coverage offers several advantages that allow you to earn rich dividends on the premium paid. These have been enlisted below :

  • Complete peace of mind while riding the bike, as you can rest assured that all monetary expenses in the event of an accident will be taken care of by the insurer.
  • Value addition to the basic bike insurance plan.
  • Claim settlement takes place faster than the basic plan.
  • If you have purchased a new bike, the zero dep plan prevents significant expenditure from your pocket if an incident mandates expensive parts replacement.
  • You will never get shocked seeing that only a small sum has been reimbursed during bike insurance claim settlement against a large repair bill.

Some Important Points to Remember about Zero Depreciation Bike Insurance Add-on

  • Zero dep reimbursement may not be given if your bike has been damaged beyond repair or if the damage is being written off as a complete loss.
  • During the policy period, you can usually claim zero depreciation coverage for a maximum of two times (however, the insurer may allow for a higher number of claims).
  • To claim zero dep cover, you must get your bike repaired at network garages stipulated by the insurer.
  • Zero dep cannot be purchased for bikes that are beyond 5 years or crossed the age threshold defined by the insurer.
  • Zero dep claim will be denied if the bike parts suffer damage because of a mechanical fault.
  • If damage to the bike has been caused by parts that have not been insured (gas kit, bi-fuel kit, etc.), zero dep claim may be denied.
  • The cost of replacing or repairing bike parts that have fallen prey to usual wear and tear induced by age will not be reimbursed.


Zero dep insurance for bikes is a must-have add-on for enjoying absolute peace of mind whenever you hit the road. The terms and conditions defining this add-on’s coverage will differ based on the insurer. It is advisable that you carefully go through the clauses mentioned in the document so as not to be caught unawares at the time of the claim. If you own a new or expensive bike, you cannot do away with zero depreciation cover.

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1. What is the most appealing advantage of a zero dep cover for a bike?

The depreciation of damaged components is not factored in when settling the claim. This results in a higher payout. In a normal policy, the claim amount is paid after a standard deduction of 0% - 40% on the cost of the repaired components.

2. Can I avail of the zero depreciation cover if my bike has been damaged beyond repair?

No. If the severity of the damage is very high or beyond repair, the insurer can deny the claim under zero depreciation cover.

3. I had not availed of the zero dep cover earlier. Can I apply for it while renewing my policy?

Yes. Zero dep bike insurance coverage can be taken for a new bike as well as for the bike whose insurance plan is being renewed.

4. If a spare of my bike needs repair or replacement due to damage caused by wear and tear induced by age, will its cost be reimbursed under zero dep cover?

No. Such repairs or replacements are excluded from the coverage of a zero dep add-on.

5. Will I have to pay extra for availing of zero dep add-on protection?

Yes, you will have to pay a little extra to opt for this add-on along with your basic insurance plan.

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