Tata AIG Zero Depreciation Bike Insurance Policy
As your bike gets older, the value of some parts depreciates due to regular wear and tear. This, in turn, depreciates the overall bike's value. While settling the two-wheeler insurance claim, your insurance company deducts the depreciated value of these parts from the sum assured value for filing a claim for damages done to your bike.
However, in case you add the Zero Depreciation or Bumper-to-Bumper add-on cover from Tata AIG to your comprehensive bike insurance policy, then you are entitled to get the entire claim amount without deducting the depreciated value of your bike. Without this NIL depreciation add-on, you shall receive the depreciated value of your bike and the two wheeler insurance might not cover the complete damages.
Depreciation Rate of Bike - Without and With Tata AIG Zero Depreciation Add-On
| Age of Bike | Without Zero Depreciation add on | With Zero Depreciation add on |
|---|---|---|
| Under 6 months | Nil | 0% |
| 6 months to 1 year | 5% | 0% |
| 1 to 2 years | 10% | 0% |
| 2 to 3 years | 15% | 0% |
| 3 to 4 years | 25% | 0% |
| 4 to 5 years | 35% | 0% |
| 5 to 10 years | 40% | 0% |
| More than 10 years | 50% | 0% |
Depreciation Rates According to the Parts of the Bike
| Parts of Bike | Without Zero Depreciation | With Zero Depreciation |
|---|---|---|
| Rubber/Nylon/Plastic parts | 50% | 0% |
| Fibre Glass Parts | 30% | 0% |
| Glass Parts | Nil | 0% |
Benefits of Tata AIG Zero Depreciation Bike Insurance Policy
1Full Coverage for Parts
Zero depreciation coverage covers the entire cost of the replaced parts in case of an accident without taking into consideration their depreciated value. This means complete financial protection.
2No Out-of-Pocket Costs for Depreciation
When you file a claim, you need not pay out of pocket for the depreciation of the bike parts. This reduces your overall cost at the time of making claims.
3Increased Claim Amount
Since depreciation is not deducted from the claim, you may get a higher claim amount. This helps keep your bike in good condition without worrying about costs.
4Cost-Effective in the Long Run
Although you need to pay a little extra for zero depreciation covers, it can be cost-effective as it lowers your financial burden during the time of claims.
What is Not Covered Under Tata AIG Zero Depreciation Add-On?
1Limited Availability
This add-on coverage is only available for certain types and models of bikes.
2Claim Limits
You can only make two Zero Depreciation claims during the period your policy is active.
3Age Limit for Bikes
Only bikes that are less than two years old can get this Zero Depreciation cover.
4Exclusions
This cover does not include regular wear and tear, damage from risks not covered by your policy or mechanical breakdowns.
FAQs
No, you cannot have Zero Depreciation with third-party insurance. This cover should be added to a comprehensive or own-damage bike insurance policy.
You should consider a Zero Depreciation Cover in case of either a new or an expensive bike or if you are concerned about the repair and replacement costs. This cover is excellent for maintaining low repair costs with no depreciation hassles.
No, the Zero Depreciation add-on does not usually cover replacements of tires unless they are damaged due to an accident covered under the policy.
Adding Zero Depreciation Cover will raise your premium a little bit since it gives broad coverage without considering depreciation, and this results in higher claim amounts.
Yes, even with Zero Depreciation Cover, there would be a deductible that you will have to pay on the claim.
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