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Zero Dep vs Comprehensive Two Wheeler Insurance Cover- Which One Is Better?

By Finserv MARKETS - May 2,2019
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Comprehensive and Zero Depreciation in Bike Insurance.

The Two-Wheeler Insurance market in India is flooded with innumerable options. As a responsible bike owner, you would definitely want to secure the best coverage for your precious bike.

Out of the numerous options available in the market for bike insurance, the Zero Depreciation Insurance Cover and comprehensive insurance cover are the most popular. Each of these policies has its own advantages and disadvantages, hence choosing the right one can be confusing.

When we consider comprehensive vs zero depreciation insurance, this article will help us understand the difference between both the terms, and help us make the right choice while purchasing a bike insurance policy.

What is Zero Depreciation Bike Insurance?

As you may already know, your scooter or bike is a depreciating asset. In simpler terms, the market value of your motorcycle reduces with time. Under a basic Bike Insurance policy, the insurance company provides coverage for damage repairs or replacement of various components only after deducting the applicable depreciation.

When you choose a Zero Depreciation Cover for your bike, you can secure the entire coverage without bearing the losses of depreciation.

Zero Depreciation Bike Insurance Add-On Cover – Inclusions

  • Zero depreciation two wheeler add-on cover acts as a protection against the expenses incurred due to rubber, plastic, fibreglass, and nylon parts of your bike
  • As it is an add-on cover, it can be availed at any time after purchasing a comprehensive two wheeler insurance
  • You can also seek zero depreciation cover when renewing your bike insurance policy

Zero Depreciation Bike Insurance Add-On Cover – Exclusions

The zero depreciation cover as a stand-alone policy comes with a few exclusions. The things that are not included in the cover are as follows –

  • Damage caused due to an uncovered risk
  • Damage to the parts of the bike that are not insured like tyres, bi-fuel kit, gas kit, and so on
  • General wear and tear of the insured motorcycle
  • Damage incurred due to any mechanical issue
  • It does not protect against theft or total loss of the bike

What is a Comprehensive Insurance Cover?

Unlike the basic third-party insurance, a Comprehensive Cover offers a wide coverage against numerous risks on the road such as accidents, theft, natural calamity, in addition to third-party liability coverage. In other words, a Comprehensive Two-Wheeler Insurance plan offers complete coverage against significant risks.

Key Characteristics of Comprehensive Two Wheeler Insurance Cover

The comprehensive bike insurance plan comes with numerous features and benefits, such as –

  • It will cover you against all third party liabilities. So, if you have comprehensive bike insurance, your insurer will take care of all the financial and monetary liabilities you owe to the third party in case of accidents, injuries, damage, or death.
  • It provides coverage for damages incurred due to natural disasters like floods, earthquakes, and so on.
  • It provides coverage for damage incurred due to man-made coverage like fire and theft.
  • It provides you and the pillion rider with personal accident insurance cover

Importance of Comprehensive Two Wheeler Insurance Cover

Although having third-party insurance is mandatory under the Motor Vehicles Act of 1988, a lot of people recommend buying a comprehensive insurance plan for your bike. The reason behind this is that comprehensive policy provides extensive coverage to your motorcycle.

Apart from this, you should opt for a comprehensive two wheeler insurance cover for the following factors –

  • With comprehensive bike insurance, you will be protected during unfortunate events that lead to hefty expenses and draining of your savings account
  • You can also avail bike roadside assistance anytime, anywhere, in case of a sudden break down.
  • The insurance provider will offer essential assistance when the insured bike is damaged or needs repair work. You can avail cashless services at the network garages, thus saving you from incurring significant repair expenses from your pocket.
  • Even though comprehensive insurance has relatively high premium rates, it offers coverage against an array of issues.

What is the Difference between Zero depreciation and Comprehensive Insurance?

  • Premium: 

Generally, comprehensive insurance cover is offered at a relatively lower premium by insurance companies when compared to zero depreciation cover.

  • Claim Settlement:

In case of a comprehensive insurance policy, the policyholder must bear losses caused due to depreciation at the time of claim settlement. However, with a zero depreciation cover, the policyholder need not worry about depreciation.

  • Repairs:

Under zero depreciation insurance, the insurer provides total coverage for repair expenses incurred inclusive of plastic parts. In case of two wheeler comprehensive insurance, the policyholder must bear the extra costs for plastic parts from his/her own pockets.

  • Period of Coverage:

A zero depreciation bike insurance cover offers coverage for a period of up to 5 years while a comprehensive cover provides coverage for two-wheelers up to 15 years.

  • Suitability:

A comprehensive Two Wheeler Insurance cover is suitable for anyone who wants complete protection. On the other hand, a two-wheeler zero depreciation add-on cover is ideal for policyholders who wish to save on depreciation.

Should I Buy Zero Depreciation Bike Insurance

As you can see, both zero depreciation cover and comprehensive cover for Two-Wheeler Insurance have their own advantages and disadvantages. Hence making the right choice entirely depends on personal preference and needs.

With Bike Insurance plans available on Finserv MARKETS, you can avail both the benefits together if you wish. However, you would need to pay an additional premium. Regardless, every penny spent on securing extra coverage is worth it!

So buy Two Wheeler Insurance online at Finserv MARKETS and give your two wheeler the protection it needs.

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"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522