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What Is Zero Depreciation in Bike Insurance?

By Finserv MARKETS - Aug 5,2019
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Zero Depreciation in Two Wheeler Insurance.

Depreciation refers to the loss of value of a vehicle, like a bike, owing to the wear and tear that naturally occurs over some time. Depreciation is the reason your vehicle’s resale value is always lower than the original price at which you bought it.

To circumvent this loss in value, some insurers offer zero depreciation cover which means they will not deduct the depreciation value of your bike or any of its parts at the time of settling claims; allowing you to save money since you get a higher claim amount for the damages incurred in case of accidents or any other unfortunate events.

The bike insurance plans available on Finserv MARKETS will provide you with a zero depreciation cover at a relatively low additional cost. You can avail a zero depreciation cover by paying a slightly higher premium than would have been applicable for your standard insurance policy, but the benefits you accrue are more than worth it.

Zero depreciation insurance is one of the best options available in the market today, especially when it comes to bikes which have expensive or imported parts which can cost quite a lot of money to repair or replace in case of an accident.

Finserv MARKETS also provides cover for repairs and for replacing any expensive parts, such as the engine, on your bike.

You can add a zero depreciation cover to your bike insurance policy either while opting for the plan, or even while you have your two wheeler insurance renewal online. You can apply for two wheeler insurance online through Finserv MARKETS transparently and seamlessly. Some benefits covered under the zero depreciation cover in a bike policy are:

  • Your out-of-pocket expenditure is lower at the time of an accident since your insurer will settle the actual claim amount without deducting any value for depreciation of the bike. By opting for a zero depreciation bike cover, you are actually saving money in the long run!
  • Many zero depreciation bike insurance policies include compensation for depreciable parts including parts made of nylon, rubber, fiberglass and plastic
  • The battery and tyres of a bike are the parts which largely incur depreciation. However, a zero depreciation two wheeler insurance policy will pay compensation for partial damages to these parts also during claim settlement. The benefits of this are enhanced on Finserv MARKETS, which also covers repairs and replacement costs incurred for any part of the bike. Apply for insurance online today and start availing these benefits at the earliest.
  • A zero depreciation bike insurance policy will ensure compensation for costs incurred for repairing and replacement of parts at the time of settling claims

Now that you understand the benefits that you avail by paying for a zero depreciation policy, it seems pertinent to examine the difference between a comprehensive bike insurance policy and a zero depreciation two wheeler insurance policy.

Continue reading to learn the difference between a comprehensive insurance policy and one with a zero depreciation cover, and what the best two wheeler insurance should cover:

  • The cost of the premium is bound to be of significance in the decision making the process. Availing the benefits of a zero depreciation cover on your bike insurance policy may require you to pay a premium higher than your comprehensive insurance policy would need, but the benefits far outweigh the costs. This is especially evident in case of accidents when a zero depreciation cover allows you to claim a higher amount while a comprehensive policy deducts money owing to the age of the vehicle as well as for depreciation in the vehicle’s parts due to regular wear and tear.
  • With a comprehensive standard bike insurance policy, the cost of repair and replacement of parts made of plastic fibre are borne mainly by the insured. However, with a zero depreciation cover on your two wheeler policy, you can save costs since the costs of repair and replacement of parts made of plastic fibre, which is a significant component of the vehicle, will be borne by your insurer.
  • The age of the vehicle is a major factoring every stage of availing an insurance policy. Most insurers offer up to two claims for the policy terms, which means that the zero depreciation bike policy is available only for vehicles up to a certain age. However, a comprehensive bike policy does not take the age of the vehicle into considering while providing cover since the amounts for depreciation are deducted at the time of settling claims. If your vehicle has passed a certain age, you may have the option of only opting for a standard comprehensive bike insurance policy.

To Conclude

A zero depreciation policy will cost you more money owing to higher premiums you will have to pay, but it will also save you a lot of expenses in case of accidents.

To learn more about the best options available to those looking for a zero depreciation cover on their bike policy, visit Finserv MARKETS and check out all the benefits you could have access to with different bike insurance plans.

Apply for bike insurance online, and along with zero depreciation two wheeler insurance being available at a fraction of the cost; you will have access to benefits such as round-the-clock assistance for towing of the vehicle, minor bike repairs, replacing lost keys or tyres, and dealing with dead batteries, fuel assistance, as well as accommodation and taxi benefits for you.

So, why wait? Get your motorcycle covered with comprehensive bike insurance at Finserv MARKETS, today.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522