National Zero Depreciation Bike Insurance

After the purchase of the product, it starts losing its value bit by bit. It is a gradual process and common with all the products. The same is also true for the vehicle. These insignificant losses can increase your problems at the time of the claim settlement. In insurance terms, this is referred to as vehicle depreciation. While settling the claim, the insurer does calculate the depreciation cost of the vehicle under the claim amount. Hence, this cost has to be borne by the policyholder. 

National Two Wheeler Insurance Zero Depreciation Cover

Zero Depreciation is not included in the base policy of any National bike insurance. However, it comes as an add-on cover with the National comprehensive and the standalone policy. There are two types of covers specifically curated by the National Insurance company, especially for the bike insurance holders. Both provide protection against the depreciation of the vehicles, if zero depreciation is added. 

Benefits of National Two Wheeler Insurance Zero/Nil Depreciation Add-on Cover

Following are the benefits of the National two-wheeler insurance zero/nil depreciation add-on cover: 

• Allows Higher Claims:

Without National two wheeler insurance zero/nil depreciation add-on cover insurer will provide the claim amount after deducting the depreciation cost of the vehicle. However, you get to file for higher claims with this cover, and the insurer will have to pay the whole amount to you. 

• Additional Savings:

By purchasing this National two-wheeler insurance zero/nil depreciation add-on cover, you may have to pay a slight increase in the premium amount. Premiums are the monthly installments you pay to the insurer for the benefits. This slight increase does not appear to be a burden on you. The increased amount is still minimal if you compare it with the depreciation cost that you will otherwise have to pay in case of an eventuality. So, ultimately you save more money than you spend.

• Monetary Benefits: 

When you file a claim to the insurer, you get monetary compensation for the parts that are depreciated. The insurer cannot reject the claim or cannot deny the compensation amount under this cover. 

Depreciation Rate Applicable on National Bike Insurance Policy With and Without Zero/ Nil Depreciation Add-on

Following are the rates of depreciation with and without National two-wheeler insurance zero/nil depreciation add-on cover. 

What is Included Under a National Two Wheeler Insurance Policy with Zero/Nil Depreciation Add-on Cover?

Below mentioned are the benefits that are included with the National two-wheeler insurance zero/nil depreciation add-on cover:

• Policyholders are reimbursed for the depreciating parts that were repaired or replaced. 
• The tyres and engine or battery are also considered depreciation. If they are partially damaged, then they are included in the insurance cover. 
• The parts that are made up of nylon, rubber, fiberglass, and other plastic parts are included in the National two-wheeler insurance zero/nil depreciation add-on cover.

What is Excluded Under a National Two Wheeler Insurance Policy with Zero Depreciation Cover?

National bike insurance zero depreciation add-on cover does not include the following things: 

• At the time of the accident, if the driver is driving without a proper licence, the insurance claim gets rejected. 
• Driving under the influence of intoxicants is another reason to reject an insurance claim. 
• No mechanical or electrical breakdown of the vehicle is covered under this insurance. 
• The vehicle above the age of 5 years from the original purchase will not be eligible for National bike insurance zero depreciation add-on cover. 
• Complete damage or the loss of the deductible parts are not covered under the National bike insurance zero depreciation add-on cover. 

Factors Affecting National Two Wheeler Insurance Zero Depreciation Cover

National bike insurance zero depreciation add-on cover is affected by the following factors:

• Benefits of the National bike insurance zero depreciation add-on cover can be availed only twice during the tenure of the insurance policy. 
• Repetitive wear and tear of the product are not applicable under this cover. 
• A second-hand vehicle or vehicle with the age of more than 5 years is not eligible under this insurance cover.