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Zero Depreciation Cover for Bike Insurance


Everything You Need to Know about Zero Depreciation Cover for Bike Insurance

With time, the value of your two-wheeler (like any other tangible asset) decreases. This is known as depreciation. Although buying a two-wheeler can be a solid monetary investment, it is nevertheless prone to mishaps— road accident and disasters (natural or man-made). This further leads to an increase in expenses for the repair and replacement of damaged parts of your vehicle. To protect you from these damages, a two-wheeler insurance is a must.  The advantage here is that most two-wheeler insurance companies offer add-on covers like the  zero-depreciation cover which compensates for the depreciated value.  Depreciation in a tangible asset’s value is a financial loss for the individual.

Understanding Zero Depreciation Cover

Let’s take the following situation as an example. Ravi has met with a road accident while riding on his motorbike. However, he is protected by a two-wheeler insurance policy. He files for an insurance claim for the same, but to his disappointment, he gets a compensation which is 40% lesser than the actual amount he expects. On asking his insurer, he realized that a standard two-wheeler insurance policy does not provide for the depreciation amount. This means that Ravi received compensation as per the current market value of the two-wheeler.  Had Ravi also purchased a zero-depreciation cover as an add on (at the time of buying his bike) he would have received the full amount without any deductions. This means that the insurance provider would have compensated Ravi for the value of depreciation. Under zero depreciation cover, depreciation is considered for claim payment by all insurance companies.

A zero depreciation cover is applicable when you buy a new policy and at the time of renewal of an already existing policy.

What does Zero Depreciation Include?

  • The depreciation rate for the two-wheeler insurance policy rages from 0%-40%. However, if you have a zero-depreciation cover, you can claim the full amount.


  • A zero-depreciation cover is applicable for new bikes or bikes with a maximum age of two years. You can make up to two claims during the term of the policy or one claim annually. That being said, the clause regarding the number of claims made is subjective from one company to the other.


  • Make sure to read the terms of the policy as this add-on is valid for selective two-wheeler models.

What Does Zero Depreciation Exclude?

  • Any uninsured peril is not covered by a zero-depreciation cover.
  • Uninsured items like tyres, fuel and gas kits, etc. are not considered by the zero-deprecation policy.
  • General wear and tear of the two-wheeler or damage caused due to mechanical fault are not covered by the zero-depreciation add-on.

Terms and Conditions Under a Typical Zero Depreciation Cover

Terms and Conditions Under a Typical Zero Depreciation Cover


 Make sure to thoroughly understand the terms and conditions of the policy and in case of any doubts, clarify with your insurer. The following conditions fall under a zero-depreciation cover-


  •  The zero depreciation cover is not applicable in case your insured vehicle in completely damaged or is lost or stolen.
  • You can make only two claims during the term of the policy
  • You can avail zero deprecation cover only if the two-wheeler is repaired at a garage which is part of the insurance provider’s network.


Talk to your insurance company to completely understand the terms and conditions at the time of buying an add-on zero depreciation cover.


Benefits of Zero Depreciation Cover

You can avail the following benefits from a zero-deprecation cover:

  • You can save yourself from paying for the damages to your bike as a zero-deprecation cover negates the depreciation cost.
  • If you make a claim with a zero deprecation add on, no depreciation amount is considered at this point.

Save yourself from the hassle of paying huge amounts while making claims or paying for the repairing cost of your two wheelers. Zero depreciation takes care of it all. Make sure to buy two-wheeler insurance online or renew the same from Bharti AXA, today.

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Disclaimer :The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice for Travel/Health/Motor. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.

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