According to the Motor Vehicle Act 1988 in India, it is mandatory to have at least third-party bike insurance for a bike on Indian roads. However, the third-party insurance covers only third-party liabilities.
To get coverage for their own damages also, policyholders go with the plans with the extensive coverage along with the other add-on benefits like zero depreciation, road assistance and more.
With the introduction of several other plans and add-ons, the buyers can now make a rational decision and select the plan and coverages which give them extensive coverage and required protection.
So, in this article, for better clarity between the two prominent choices i.e, comprehensive policy and zero depreciation coverage, we will do a comparative analysis.
Basically, zero depreciation is an add-on- which you can opt for with the comprehensive policy. But how will you decide whether you would invest in the zero depreciation bike insurance or the basic comprehensive policy, and which one is superior and how? To know this, keep reading this article.
What is the Comprehensive Policy for Bikes?
A comprehensive bike insurance policy is an insurance policy which provides extensive coverage to the bike and its owner against the wide range of risks that occur due to accidents, collisions, theft, natural calamities and more.
It allows you to add additional riders and covers to create a more comprehensive plan tailored to your bike needs. However, in this, you pay a premium according to the type of coverage and limits you opt for.
Comprehensive Policy: Inclusions
- Coverage for a wide range of risks
- Protection against property damage
- Liability coverage for third-party claims
- Coverage for theft and vandalism
- Personal injury protection
- Coverage for natural disasters
Comprehensive Policy: Exclusions
- Deliberate acts of harm or illegal activities
- Wear and tear, gradual damage, or maintenance issues
- Specific high-risk activities (e.g., racing)
- Intentional damage to your own property
- War or nuclear incidents
- Certain types of business-related activities
A comprehensive bike insurance policy provides extensive coverage but cannot save you from depreciation. So there is a provision of Zero Depreciation add-on. Let us explore this in brief.
What is Zero Depreciation Bike Insurance?
Zero Depreciation, also known as Nil Depreciation and Bumper-to-Bumper Insurance cover, can be opted for during the initial two-wheeler insurance purchase or at the time of renewal.
Opting for this cover will help you save costs as the insurance provider doesn’t consider the depreciation amount while providing the claim. It is highly beneficial for luxurious and new bikes.
However, to opt for this benefit, you have to pay a higher premium than the standard comprehensive policy.
***Depreciation Amount: The amount of wear and tear and ageing of the vehicle with time.***
Benefits of Zero Depreciation Bike Insurance Policy:
- Complete compensation for depreciable parts in need of replacement.
- Full coverage of repair and replacement costs during claim settlement.
- Some providers cover partial battery and tire damages without factoring in depreciation.
Considerations before opting for Zero Depreciation Cover:
- Inquire about the allowable number of claims from your insurance company under this cover.
- Note that only specific two-wheeler models qualify for claiming NIL depreciation without excess.
Table: Zero Depreciation or a Comprehensive Bike Insurance Policy
| Aspect | Zero Depreciation Insurance | Comprehensive Insurance |
| Coverage for Depreciation | Depreciation is not considered | Depreciation is considered |
| Cost of Premium | Higher premium costs | Lower premium costs |
| Coverage for Repairs | Full coverage for repairs without considering depreciation | Coverage may factor in depreciation, and you may bear a portion of repair costs |
| Ideal for | Highly recommended for brand-new and high-value or luxury bikes | Applicable for a wide range of bike types and values |
| Claim Payout for Total Loss | Pays the full invoice price (excluding registration and insurance costs) | Pays the current market value of the bike, considering depreciation |
| Policy Duration | Typically available for new bikes for a limited number of years | It can be renewed for the lifetime of the bike |
| Premium Discounts | Limited discounts on premiums | Various discounts are available, such as a No-Claim Bonus, safe riding, etc. |
| Claim Settlement Process | Faster and simpler due to fewer depreciation-related calculations | It may involve more complex claim settlement calculations |
| Cost of Repairs After an Accident | Minimal or no cost for repairs, depending on the policy | It may require the policyholder to cover a portion of repair costs |
Conclusion- Bike Zero Dep Insurance Or Comprehensive Insurance: Which is Better?
It is quite difficult to say which one is superior, but it is recommended to assess your needs first. For instance, if you are looking for bike insurance for your brand-new luxurious bike, opting for zero depreciation is beneficial. It is because if your bike gets damaged or stolen by someone, you will get the full claim without the deduction of the depreciation.
On the other hand, if you want extensive coverage for your old bikes, opt for the comprehensive policy without depreciation coverage, as every additional benefit comes with a cost. So, evaluate your unique needs precisely, then invest in the best insurance policy to leverage the maximum benefits at affordable prices.
