Tips for Policyholders to Understand Depreciation of Bike Components and Ensure Adequate Coverage

Your two-wheeler’s Insured Declared Value (IDV) doesn’t stay the same as the years roll by. With the passage of time, this vehicle-specific metric is subject to depreciation, due to the inevitable wear and tear/aging of the parts that collectively make up your vehicle. Hence, when you file a bike insurance claim, you may receive a reduced amount, as per your two-wheeler’s IDV at that point in time.

While some people may not mind settling for a lower disbursement, it is not the norm. If you don’t fall into this category of policyholders, there’s one way for you to evade such periodic depreciations. To ensure that your bike retains its original IDV, simply opt for the ‘Zero-Depreciation Cover’ when you’re purchasing/renewing your two-wheeler insurance policy. There exist some highly exhaustive plans in the market, including the bajaj allianz bike insurance plan, which you can go for, to obtain optimal coverage.

Benefits of Going for a Zero Depreciation Rider

By going for a zero-depreciation bike insurance rider, you can boost the coverage of your policy and open doors for the following benefits:

• Obtaining the complete claim amount promised to you at the time of purchase
• High coverage amount = reduced out-of-pocket expenditures
• Shielding your hard-earned savings from being drained amidst unforeseen adversities
• Getting expensive parts repaired or replaced, without spending a penny

Wait, there’s more! If you wish to know more about other viable inclusions offered by this add-on, then keep reading.

Zero Depreciation Cover: Inclusions

Once your bike insurance plan has been enhanced by a zero depreciation add-on, you can sit back and relax. With this rider in action, you’re eligible to benefit from the following inclusions:

• Costs of repair/replacement of depreciable components made of rubber, nylon, fiberglass, or plastic
• Expenses related to the repair/replacement of your bike’s battery and tyres

Typically, you’ll be asked to make the payments for the necessary restorations. Then, at the time of claim settlement, your respective insurance provider will reimburse you for the same.

Zero Depreciation Cover: Exclusions

Whilst purchasing a comprehensive bike insurance plan that’s tailor-made to suit your unique needs, it’s important to educate yourself about some exclusions posed by this add-on as well. Some expenses that aren’t covered by the zero-depreciation rider include:

• Costs related to uninsured deterioration
• Overheads caused by mechanical malfunctions
• Costs associated with the organic wear and tear of the bike
• Financing required to address total vehicular loss/damage
• Overheads centric to uninsured parts, which may include the bike’s gas tank, tyres, or bi-fuel kit

Some things to remember

There are some specific policy terms which you stay aware of, especially when you raise a claim for a zero-depreciation bike insurance policy:

• You cannot file a zero-depreciation bike insurance claim if your two-wheeler is damaged beyond redemption
• Typically, this add-on comes with a limit of two claims per policy year
• You’re only permitted to get your bike repaired at certain, pre-specified network garages. If you get the repairs done by a third-party technician, your claim may be dismissed

Why You Should Still Opt for the Zero Depreciation Rider

Despite the abovementioned exclusions being applicable at the time of claim settlement, going down the zero depreciation cover route still remains the viable alternative. Why? Read through this section to find out.

Higher Claim Settlement Amounts:

When you go for a standard bike insurance policy, your claim settlement disbursal will be influenced by the age of your bike and the routine depreciation of its components’ valuation. This is not the case when you’ve opted for a bike insurance plan with a zero-depreciation rider, as the same will ensure that you obtain complete compensation, without being subjected to any IDV-related deductions.

Cost of Premiums:

For a negligible price, you can enhance the coverage of your standard bike insurance policy by a considerable amount. Doing so will ensure that your hard-earned savings remain largely untouched, irrespective of the degree of damage incurred.

Repair/Replacement of Plastic and Fibreglass Parts:

Usually, costs associated with the repair or replacement of plastic and fibreglass components are borne by the policyholder. However, when you choose a zero-depreciation cover, the burden of such financial inconveniences is shifted to your respective insurer’s shoulders, with you not having to spend even a single rupee!

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