Nil Depreciation Covers For Two Wheelers Insurance Policy- Facts & Benefits

Car policy are very known to the term Zero Depreciation plan wherein during the processing of claim the depreciation factor is not taken into consideration and policy holder saves himself from the out of pocket expenses which he /she would made otherwise. Similar in lines of Zero depreciation for car, Insurers have started given an add on cover over and above the standard two wheeler policy called the Nil Depreciation add-on. Looking the percentage rate of depreciation which varies between 0 to 40% this add-on cover can acts a boon for a two wheeler policy holder. But the first question that need to be answered in what is nil depreciation cover?

Say the case Mr. Ravi who duly filled his claims when his bike met with an accident. But the money that came as settled claim from his insurance company shocked him largely. The amount that he was expecting was a lakh of rupees but what he received was just 60% of the money and so he has to shed 40% of the repair cost from his own pocket. So the question is that where this 40% went away. This 40% actually went away because the valuation of the two wheeler which his insurance company did while settling his claim depreciating by the rate of depreciation. In case Ravi has opted for nil depreciation he would have saved the 40% of the money which he paid out of his pocket.

Now let us understand what are benefits if Ravi would have opted for Nil depreciation under his standard two wheeler insurance plan. Looking at the basic benefits if Ravi would have opted for the add on he would saved the money otherwise which he paid from his pocket. There are certain conditions under which the nil depreciation add on becomes more beneficial

  1. You should keep in mind if the bike is stolen or completely damaged the add-on would not be effective.
  2. You can avail the benefits in the initial two years or only two times during the period of the policy
  3. You can avail the benefit only if the two-wheeler is repaired in any networked garages of the insurance company. This list regarding which you can find in your policy document

The Nil depreciation for two-wheeler covers all plastic, rubber, nylon and fiberglass parts of your vehicle. Can be opted in brand new vehicles or during the process of renewal but you should always keep in mind that in there are some specific cases during which the add-on is not effective and which should be kept in mind while paying extra money for this add-on

  1. Damage due to insured peril or defect
  2. Few parts like bike fuel kit, tyres and gas kit are not considered under a nil depreciation add on
  3. The normal wear and tear happening due to regular use is not considered
  4. Any damage happening to your two-wheeler due to mechanical breakdown in covered under the nil depreciation add-on cover.

So we should always keep in that the add-on brings in lot of benefits for the two-wheeler Insurance policy holder but you should always judge the benefits with respect to the extra cost that you would as premium. Though generally in our country two-wheeler run uninsured but do keep in mind it is necessary and what add-on you consider should be looked into as per your driving patterns. Prefer looking at online insurance comparison portal for do effective comparison between two-wheeler insurance policy offer by different insurers before buy or Renew Two Wheeler Insurance Policy one. Effective comparison always leads to long term benefit and greater savings