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Which is Better: Comprehensive or Zero Dep Two Wheeler Insurance Policy

By Vikas Chandra Das
21 July 2022, 11:46 AM

The two-wheeler insurance market in India is filled with choices. This makes it very difficult for a bike owner to make the right decision. Before buying, it is important to consider the coverage you are getting for your precious bike. 

Out of the various choices available, Zero Depreciation Cover and Comprehensive Insurance policy are the most discussed products. Both of these products have their own pros and cons. Therefore, deciding which one to opt for can be a real challenge.

In this article, we will tell the difference between both these terms and help you make the correct decision while buying a bike insurance plan.  

What is Zero Depreciation Bike Insurance? 

You must be aware of the fact that your bike is a depreciable item. Depreciation refers to the reduction in your bike’s market value over time. As time passes, the valuation of your bike drops. Under a comprehensive bike insurance plan, your insurance provider will only compensate a maximum of your bike’s IDV (Insured Declared Value)

Usually, in the case of claims, the insurer takes into consideration the depreciation of the insured car. This results in a mismatch between the actual claim amount and the compensated amount. Choosing a zero depreciation add-on Cover guarantees that the claim amount will be received in full without any depreciation. 

Zero Depreciation Bike Insurance Add-On Cover – Inclusions 

Zero devaluation bike add-on cover can be coupled with a Comprehensive insurance plan 

As it is an extra cover, it widens your benefits when bought with a bike insurance plan. You can also look for zero depreciation cover at the time of renewing your bike’s insurance policy.  

Zero Depreciation Bike Insurance Add-On Cover – Exclusions 

A zero depreciation cover is not a complete insurance plan. The following are exclusion from the cover – 

  • Damages to the pieces of the bike that are not protected like tires, bi-fuel unit, gas pack, etc
  • General mileage of the insured bike
  • Damages caused due to mechanical issue
  • Claims against theft or complete loss of the bike

What is a Comprehensive Insurance Cover? 

On the other hand, a Comprehensive Cover offers a wider inclusion against various dangers. For example, mishaps, robbery, natural calamities and even Third Party Liabilities. As such, a Comprehensive Two-Wheeler Insurance plan offers total inclusion against critical dangers. 

Key Characteristics of Comprehensive Two Wheeler Insurance Cover 

A Comprehensive Insurance will cover you against both Third Party as well as Own Damage liabilities. It can be claimed in case of the following :

  • Partial or Complete damage to your car due to an accident
  • Damage to the vehicle or property of the third party due to an accident
  • Injury to the policyholder during an accident
  • Injury to a third party (person) during an accident
  • Car Theft
  • Partial or Complete damage to your car in case of fire
  • Partial or Complete damage to your car in case of natural disasters

Significance of Comprehensive Two Wheeler Insurance Cover 

Under the Motor Vehicles Act of 1988, all bike owners need to purchasing a mandatory Third Party Protection plan for their bike. Aside from this mandatory cover, a Comprehensive bike insurance cover has the following advantages – 

With comprehensive bike insurance, you will be secured during unexpected functions that lead to financial losses. You can also made use of the premium services in case of an emergency. 

Moreover, your insurance provider will compensate the cost of repairing your bike, if you meet with an accident. You can claim for cashless servicing at the network garages. This will help you save out of the pocket costs during times of trouble. 

Although the premium for a Comprehensive plan is higher, it is worth the extra services provided.

Difference Between Comprehensive Policy and Zero Depreciation Insurance Policy

Factors Comprehensive Policy with Zero Depreciation coverComprehensive Policy without Zero depreciation cover
Premium AmountMore than a normal comprehensive policyLess than a policy with the Zero Depreciation addon
Claim AmountAlmost zero deductionsDeductions based on the total depreciation of all parts that need repairing
Repair PartsNo depreciation consideredDepreciation is considered on such parts
Insured bikeageDepreciation is zeroDepreciation increased up to 50% with age

Let’s understand these concepts with an example: 

Raj Malhotra purchased a new bike worth INR 2,00,000. On the way to work, he meets with an accident. The tentative cost of damage to his bike and its parts including the depreciation would be -

ParticularsCost of Damage (in INR)Cost of Depreciation (in INR)Cost of Damage with Zero Depreciation (in INR)
Metal Parts9,0004500.05
Plastic Part10,0005,0000.5
Fibreglass Parts3,0009000.3
Labor Cost4,00000

Would it be a Good Idea for you to Buy Zero Depreciation Cover? 

Both zero depreciation cover and comprehensive cover for two-wheeler insurance have their own advantages. Buying a zero depreciation add-on cover along with Comprehensive cover is the smartest investment. It helps you save the extra money spent on depreciating parts along with the mandatory Third Party coverage. This means, in case of an accident you will have all-round protection.

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