When you buy a vehicle, say a bike, you also take an insurance policy for your bike. Not all insurance policies will cover fiber parts of your vehicle, the add ons, which you may buy during the purchase of your bike. The standard comprehensive insurance motor policy will cover only the basic parts that come along with the bike.
Photo by Giorgio de Angelis from Pexels
However, there’s an exception - unlike where your bike is not fully covered in case of standard comprehensive motor insurance policy, the zero depreciation policy will take care of such repairs. Suppose you encounter an unfortunate accident, and your bike is heavily damaged. With the zero depreciation policy cover, you can avail the benefit of repairing your bike completely free, because the zero depreciation policy cover will pay all the incurred repair expenses, no matter whether the body parts is made of fiber or any other metal.
With 1 party standard insurance, the company will pay 30% for fiber parts, which indicates that in case of an accident, you are entitled for 30% claim for any replaceable fiber parts, and the rest 70% will be on you. But, when you opt for zero deprecation add-on cover along with a comprehensive standard insurance policy, you will not have to bear any cost for your repairs, even for the add-ons.
Now the question that arises here is why only 30% claim with the standard insurance policy. The insurance firm takes into account the depreciation factor of the add-on fiber parts, while with zero depreciation policy the cover is 100%.
The only drawback with zero depreciation add-on cover is the higher insurance cost. Secondly, this cover is available for bikes unto two years old. The third and the most significant fact is that only two claims are allowed per policy period.
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