It is a known fact that any vehicle is subject to depreciation. Be it a car, a truck or even a bike. The reason why this depreciation happens is because with time normal wear and tear of the vehicle is something which is really unavoidable. And thus with time a vehicle is sure to lose its usual shine and thus the depreciation factor comes to play. Anyone who goes for a standard policy will have to face depreciation deduction. Mostly because, any standard insurance policy will always make sure to deduct the amount of depreciation and give you the rest of the insurance amount and not what you had originally invested. It is in the nature of a standard insurance policy and the policy supplier to take the depreciation factor into consideration. But there is one way by which one can claim the full sum they have invested in the insurance by applying for something called zero depreciation insurance.
Zero depreciation insurance as the name clearly suggests does not deduct depreciation. Zero depreciation amount is deducted and at the time of claiming the whole amount is given to the person concerned. And like everything else something as desirable as a zero depreciation insurance comes with certain conditions,
- Unlike a standard insurance policy zero depreciation insurance policy is not claimable if the bike concerned has been completely damaged or has been stolen because to avail this insurance one needs to show proof of damage.
- The age limit of the bikes which can be insured is 2 years! A brand new bike can be insured and will be insured till it reached the age of 2 years. After that it will become ineligible for this kind of an insurance policy.
- If one thinks that they can take advantage of this policy and claim the insurance money for every small damage every now and then, then they would be wrong. It is important to know that within the two years during which the bike is insured under this policy a claim can be made for the insurance money only twice and more than that. Thus it is advisable to not claim it unless it is something very serious.
- It must be renewed annually. Just like any other policy
- And last but not the least because the insurers need proof of damage thus the bike concerned will be needed to be repaired at a network garage which can give honest feedback to the insurers not any garage will do.
Now the question may arise that what is not covered under this policy,
- Anything that does not fall under the insurance, that is uninsured damage or items
- If the bike has gone through normal wear and tear then the policy does not cover it
- Damage due to mechanical breakdown is also not covered by this policy.
Therefore the above things are needed to be kept in mind if one ever wants to apply for this policy.