A Step-by-Step Guide to Claiming Zero Depreciation Bike Insurance

Understanding Zero Depreciation Cover

Before we discuss the zero depreciation add-on, let’s understand how depreciation works and what is included in zero dep insurance. The Companies Act 2013 outlines the depreciation rates for motorbikes, which typically last 10 years.

The applicable depreciation rates under the Act are as follows:

For mopeds, scooters, and motorcycles:

• 9.50% under the Straight-Line Method (SLM)
• 25.89% under the Written Down Value (WDV) Method.

Here’s a quick look at how depreciation chops off big portions of your vehicle’s value.

Bumper-to-bumper insurance is another common name for zero depreciation bike insurance. Actually, this is the most popular add-on that most car/bike insurance companies offer with a comprehensive policy. This add-on allows the policyholder to avoid bearing the cost of depreciation on the insured bike. With this cover, the insurance company covers the full cost of replacing any damaged parts due to an accident. This means that when making a claim, no depreciation amount is deducted, and you will be reimbursed for the total cost of the parts replaced.

Benefits of Zero Dep Insurance for Bike

Zero depreciation bike insurance serves as an absolute favourite for individuals with new vehicles or expensive bikes. Here are some of the benefits of having zero-depreciation bike insurance:

• You get full coverage on replaced or repaired parts, and the depreciation costs are not deducted.
• Better coverage ensures better protection for your vehicle.
• Better financial security for your bike's maintenance.
• Easy and profitable claim settlements with no depreciation deductions.

Inclusions and Exclusions of Zero Depreciation Bike Insurance:

Now that you know what zero depreciation bike insurance is and what its benefits are, let's move ahead. Here is a list of what comes included in your zero-depreciation bike insurance plan:

• Comprehensive coverage of complete costs related to damage or repairs without depreciation cuts.
• Complete replacement expenses for rubber, fibre, and plastic parts.
• Comprehensive coverage for metal components, like parts of the engine, and so on.
• Cost of labour related to damage repair.

However, it is important to note that these inclusions may differ based on your add-on policy and your insurance provider. So, don't forget to check what is not included in your plan.

Costs of Zero Depreciation Cover

Zero dep cover is an add-on. You need to purchase it in addition to your comprehensive policy, so you will have to pay a little extra for it. The coverage can increase your premium by about 15% to 20% of the base premium. While this may be on the higher side, keep in mind that the depreciation of your vehicle can increase your share during a claim. Zero Dep can save you from that. So, choose wisely.

Eligibility criteria for Zero Depreciation Cover

Zero depreciation cover is usually available for new bikes or bikes under 5 years old. However, some insurers may offer zero dep cover for bikes older than 5 years, but with certain conditions!

Step-by-step Process to Purchase a Zero Depreciation Bike Insurance Plan:

With Jio Insurance Broking, buying the perfect 2 wheeler insurance online coverage for your beloved bike is super easy. Consider following this step-by-step guide that helps you understand how to purchase zero-depreciation bike insurance:

1. Understand Your Needs
   Understand what kind of coverage you need. You can do so by analysing your bike details, age, design, and riding style. Also, see if you need any kind of extra coverage for a distinct part.
   
2. How is Zero Depreciation calculated?
   Once you're able to gauge your needs, it's time to fix a quote for your insurance plan. You may use the online insurance calculator or go to “Get Free Quotes” to calculate premiums and choose instantly.
   
3. Fill in Your Bike Details
   Now, to make sure you get the best policy based on your bike model, consider filling in the accurate details. Keep your bike details handy, as this step includes details like manufacturing year, registration number, model, and so on.
   
4. Compare Plans
   Jio Insurance Broking makes it so convenient to check out different plans and make a comparison. You can see what features they offer, their benefits, prices, and more. Also, double-check what is included in your plan and what isn't. Further, see if you'll need other add-ons as well. These add-ons offer coverage related to engine security and more.
   
5. Make Customisations
   Before you complete your claim, read all the policy terms and conditions. Also, make sure to see if you want to make any customisations based on your requirements. Don't forget to assess that the policy you chose provides adequate coverage for all major potential risks.
   
6. Complete the Process
   Once you've read the policy details, made price comparisons, filled in your vehicle details, and completed your policy purchase by choosing a suitable payment option. Once the payment is done, you'll soon get your policy.
   
7. Claim Settlement Process
   With zero dep cover, the insurance company covers the full cost of replacing any damaged parts due to an accident. This means that when making a claim, no depreciation amount is deducted, and you will be reimbursed for the total cost of the parts replaced. Make sure you understand the claim procedure and keep your details updated and handy in case of emergencies.

Bottom Line

A zero depreciation bike insurance could come in handy in several ways. However, before you make a purchase decision, make sure to assess a few things. See the premium cost of your plan, what add-ons are best for your bike, the claim procedure and how easy it is to claim these add-ons. Additionally, with Jio Insurance Broking, you may also review 2 wheeler insurance online, the insurance company, their inclusions, exclusions, exceptions, and other relevant information. Carefully read the terms and conditions and choose what best matches your requirements.

Wait no more. Keep your favourite bike well-maintained with zero depreciation bike insurance. But one today!

• How many times can I claim zero dep insurance
• Is zero DEP useful after 5 years
• How is zero depreciation calculated

FAQs