What Is a Zero Depreciation Add-On in Bike Insurance?
Imagine riding your bike out of the showroom. In minutes, it loses some value. That is called depreciation. In a regular bike insurance claim, insurers subtract that decline in value when replacing parts. A plastic guard might have lost 50 % value. A rubber grip might lose 40 %. Over time, those deductions add up.
A Zero Depreciation (Zero-Dep) add-on changes that. When you include this rider in your comprehensive or own-damage policy, the insurer agrees not to deduct depreciation for many parts when you file a claim. You get closer to full replacement or repair cost, subject to policy rules.
Here’s how it works in practice:
Suppose your bike’s plastic panel needs replacement for Rs. 2,000. In a standard claim, depreciation might reduce that by 50 %, so the insurer pays only Rs. 1,000 and you pay Rs. 1,000. With zero-depreciation, they cover the full Rs. 2,000 (minus deductibles). Some parts like tires, tubes, batteries, consumables, etc., may still see limited depreciation deductions or have special conditions.
Also, zero-depreciation is usually valid only if your bike is not too old (many insurers set an age limit, often 5 years or less). Why do insurers allow this option? Because you’re paying an extra premium to absorb those depreciation costs they would normally shift to you. So the risk is rebalanced.
The benefits are clear:
Lower out-of-pocket expense at claim time
Simpler claim experience, no haggling over depreciation
Better for expensive bikes or parts made from plastic, fiber, rubber
But there are caveats:
You typically can claim zero-dep benefits only a limited number of times per policy year (often 2 times).
It doesn’t protect against wear & tear, mechanical failures, damages, total loss or theft excluded by the main policy.
If your bike is old, depreciation is already high, so zero-dep may not bring much extra value.
In short, zero depreciation is like a shield against value loss in components. It costs more upfront, but in a collision, it often pays off.
Best Zero Depreciation Bike Insurance Plans
Below is a list of insurers in India known to offer zero depreciation add-ons or covers.
Insurer / Plan
Highlights
1
Bajaj Allianz – Two-Wheeler with Zero Dep
Provides zero depreciation as an add-on.
2
ICICI Lombard – Two-Wheeler / Zero Dep Add-On
Offers no depreciation deduction for many parts.
3
Tata AIG – Two-Wheeler with Zero Depreciation
A well-known option, customizable add-ons.
4
HDFC ERGO – Two-Wheeler Zero Dep Cover
Emphasizes full value repair without depreciation.
5
Shriram / Shriram GI – Two-Wheeler Zero Dep Add-On
Available as add-on; consider their network and terms.
6
Digit Insurance – Zero Depreciation Two-Wheeler
Known for user convenience and timely claims.
7
ACKO – Two-Wheeler with Zero Dep Add-On
Fully digital, clear terms on depreciation.
8
Universal Sompo – Zero Depreciation Bike Insurance
Recognized name in motor insurance.
9
Raheja QBE – Zero Depreciation Two Wheeler Insurance
Includes zero depreciation in their two-wheeler plan.
10
Kotak / Liberty / Reliance / National GI etc.
Many of these insurers offer zero depreciation riders as well.
Note: Availability, terms, and limits may vary depending on your bike, location, and the insurer’s policy.
Key Benefits of Zero Depreciation Bike Insurance
An insurance policy should take the stress out of unexpected costs and not add to them. A Zero Depreciation add-on does exactly that. It ensures you receive full coverage for many parts without deductions for depreciation. In short, you get more value when you need it most. Here’s what makes it worth considering:
1
Lower Repair Bills After Accidents
Normally, insurers reduce payouts based on part age and wear. With zero depreciation, those deductions disappear for covered parts. You pay only the mandatory deductibles, while your insurer covers the rest.
2
Predictable Claim Settlements
No surprises or last-minute calculations. You know upfront what your claim will cover, which means fewer arguments over part costs and faster settlements.
3
Ideal for New and Premium Bikes
The newer the bike, the steeper its depreciation. Zero depreciation protects that early drop in value - something especially useful if you ride a high-end or brand-new model.
4
Better Protection on Daily Rides
If you use your bike every day, minor damages are almost unavoidable. This add-on helps absorb those frequent repair costs and keeps your out-of-pocket spending low.
5
Simple Peace of Mind
Knowing your insurer won’t deduct depreciation makes a real difference. It’s a small upgrade that can save you thousands during a claim.
Bike Insurance with Zero Depreciation vs Without Zero Depreciation
Here’s a clear look at how the two options differ.
Feature
With Zero Depreciation
Without Zero Depreciation
Depreciation deductions
No deductions on most parts during claims
Depreciation deducted from part cost
Premium
Slightly higher
Lower
Out-of-pocket expense
Lower, since insurer pays full cost of covered parts
Higher, since you pay depreciation share
Eligibility
Usually for bikes up to 5 years old
Available for all bikes
Number of claims allowed
Limited (often up to 2 per year)
Unlimited, as per main policy
Let’s understand with an example:
If a damaged plastic part costs Rs. 5,000 and the depreciation rate is 30%, a standard policy pays Rs. 3,500 and you cover Rs. 1,500. With zero depreciation, you get the full Rs. 5,000 (minus deductibles). That’s how easily this add-on pays for itself.
How Zero Depreciation Works?
It’s simple once you know how it functions. Here’s how the process unfolds.
Choose the Add-on
When buying or renewing your comprehensive or own-damage policy, add the zero depreciation cover. Many insurers allow it only if your bike is within a certain age, often five years or newer.
Pay a Small Extra Premium
Zero depreciation increases your premium slightly because it adds extra protection. The cost depends on your bike’s make, model, and insured value.
Understand the Coverage
The add-on covers depreciation on parts made of plastic, rubber, nylon, and fiber. Some insurers extend coverage to batteries and tyres too. Regular wear and tear or mechanical failures remain excluded.
Know your Claim Limits
Most insurers limit the number of zero depreciation claims per year (usually two). Knowing this helps you plan how and when to use the add-on effectively.
File your Claim
If your bike is damaged, inform your insurer and submit the claim documents. Once approved, the insurer pays for repairs at full value for eligible parts, without applying depreciation.
Pay Standard Deductibles
You’ll still need to pay the compulsory deductible (and any voluntary one you’ve chosen). Zero depreciation removes only the depreciation, not every cost.
Renew and Reassess
Each year, review whether you still need the cover. For newer or high-value bikes, it’s often worth keeping. For older bikes, the benefit might reduce over time.
At SMC Insurance, we make this comparison easier. You can explore plans from top insurers, understand real claim scenarios, and pick the one that matches how and where you ride.
Who Should Buy Zero Depreciation Bike Insurance?
Zero depreciation bike insurance cover suits anyone who values their bike and wants stronger protection during claims. Still, there are a few kinds of owners who benefit the most.
Owners of New Bikes
If your bike is new, depreciation starts almost immediately. A small scratch or dent could lead to reduced payouts because the insurer factors in that early loss in value. With a zero depreciation add-on, you get near-full compensation for part replacements, keeping your new bike’s worth intact.
Riders of High-End or Premium Models
Premium bikes come with expensive parts like plastic fairings, alloy wheels, or electronic panels. Replacing them can be costly. Zero depreciation ensures that the insurer covers those parts at full cost, not their depreciated value.
Daily Commuters and Regular Riders
If you ride to work or college every day, your chances of minor damage are higher. This add-on keeps those repair costs predictable and manageable, so regular use doesn’t mean regular financial stress.
Riders in Accident-Prone or Rough Areas
If your route includes busy city traffic or rough terrain, accidents or scrapes can happen more often. Zero depreciation can help absorb those sudden repair bills and make claims smoother.
First-Time Bike Owners
If you’re new to riding or to insurance itself, it’s easy to underestimate repair costs. A zero depreciation cover adds a layer of protection that saves you from surprise deductions.
At SMC Insurance, we usually recommend this add-on for anyone whose bike is less than five years old or whose parts are costly to replace. It’s a simple step that prevents a lot of claim-time disappointment later.
Steps to Buy Zero Depreciation Add-On
You can buy the Zero Depreciation add-on both online and offline. The process is quick and straightforward once you know where to look.
Online Process:
Visit a trusted platform: Go to the insurer’s website or a comparison site like SMC Insurance, where you can view plans from multiple insurers in one place.
Enter your bike details: Add your registration number, model, make, and manufacturing year. This helps calculate your premium and eligibility for the add-on.
Choose a comprehensive or own-damage policy: Zero depreciation can be added only with these types of covers, not with third-party-only plans.
Select “Zero Depreciation Add-On”: When customizing your policy, tick the option for zero depreciation or “nil depreciation.” The system will automatically update your premium.
Review inclusions and exclusions: Check which parts are covered and if there’s a claim limit per year. At SMC Insurance, we make this easy with side-by-side comparisons and clear summaries.
Make payment and get your policy instantly: Once you’re satisfied, pay securely online. Your policy document will be sent to your registered email address.
Offline Process
Contact an insurance advisor or SMC Insurance representative: Our advisors can guide you through the available plans, explain the differences between insurers, and check if your bike qualifies for the add-on.
Submit your documents: Provide your registration certificate, ID proof, and any previous policy documents if you’re renewing.
Choose your cover and pay: Select the plan with zero depreciation included, pay via your preferred mode, and receive your printed policy document.
Whether you buy online or offline, SMC Insurance makes the process transparent and simple. You can compare quotes, understand what each plan covers, and make sure you’re getting the protection that actually matches your bike and your routine.
How to Buy Zero Depreciation Add-On from SMC Insurance?
Buying a Zero Depreciation Add-On through SMC Insurance is easy and quick. You don’t have to juggle multiple insurer websites or guess which plan fits your bike. We simplify everything in one place. Here’s how you can get started:
Provide basic information like your bike’s make, model, registration number, and manufacturing year. These details help us fetch accurate quotes from multiple insurers instantly.
Step 3
Compare and select your plan
You’ll see different insurers and their plans in the next options with clear pricing, coverage details, and add-ons like Zero Depreciation. Take a moment to compare benefits as our interface makes it simple to spot what’s included and what’s not.
Step 4
Add the Zero Depreciation Cover
Once you’ve chosen a policy, select the Zero Depreciation Add-On from the list of available options. The premium will update instantly so you can see exactly how much extra you’re paying for the added protection.
Step 5
Proceed to payment and download your policy
Review your details and make a secure payment. The policy document arrives in your inbox within minutes.
Step 6
Get free post-purchase assistance
Our support team is available if you need help understanding claims, renewals, or how the add-on works in real-life situations. We stay with you even after you’ve bought the policy.
Depreciation Rates on Bike Parts: With vs Without Zero-Depreciation Cover
Depreciation affects how much the insurer pays for damaged parts. Every material like rubber, plastic, metal, etc., loses value over time. Without a Zero Depreciation cover, those percentages are deducted from your claim amount. Here’s how:
Type of Part
Without Zero Depreciation (Standard Depreciation Rate)
With Zero Depreciation (Nil Depreciation)
Plastic parts, rubber, nylon, fiber components
50%
0%
Tyres and tubes
50%
Tyres and tubes are often excluded or partially covered, depending on the insurer.
Batteries
50%
Coverage may vary; many insurers exclude batteries.
Glass parts
0%
0%
Metal parts
Depreciation as per bike’s age (usually 5%-30%)
0%
So if your bike’s side mirror or plastic fender gets damaged in an accident, a standard policy will only cover half the replacement cost. With a Zero Depreciation add-on, the insurer pays the entire part cost without deductions. That’s why this add-on is often called a “nil depreciation” cover.
Depreciation Based on Bike Age: With vs Without Zero-Depreciation
As a bike gets older, its value drops each year. Insurers calculate this decline using fixed depreciation rates, which directly affect your claim amount if you don’t have the Zero Depreciation add-on. Here’s a simple comparison:
Bike Age
Depreciation Rate Without Zero Depreciation
Depreciation Rate With Zero Depreciation
Less than 6 months
5%
0%
6 months - 1 year
15%
0%
1 - 2 years
20%
0%
2 - 3 years
30%
0%
3 - 4 years
40%
0%
4 - 5 years
50%
0%
Above 5 years
50%+ (varies by insurer)
Usually not eligible for zero-dep cover
What this means:
If your 3-year-old bike meets with an accident and the repair cost is Rs. 10,000, a standard policy might pay only Rs. 7,000 after applying 30% depreciation. But with a Zero Depreciation cover, you’d get almost the full Rs. 10,000, minus the small compulsory deductible.
Note: Depreciation and deductibles are illustrative; check the policy terms.
Average Insurance Premium Cost on Bike: With vs Without Zero Depreciation
Adding a Zero Depreciation Add-On changes your premium, but it’s usually not as steep as people think. It’s a small extra cost for much higher claim protection. Here’s how it typically compares:
Type of Policy
Approximate Premium
Highlights
Standard Comprehensive (without Zero Dep)
Rs. 3,500 – Rs. 6,000 per year
Covers damages minus depreciation; lower upfront cost
Comprehensive with Zero Depreciation
Rs. 4,000 – Rs. 7,000 per year
Extra 10–20% of base premium; covers full replacement of eligible parts
Adding a Zero Depreciation Add-On typically increases your premium by approximately 10-20%. For instance, if a standard policy costs Rs. 5,000, the addition of zero depreciation might raise it to Rs. 5,500-Rs. 6,000, depending on factors like bike make and model. This relatively small increase can provide substantial savings during claims, especially for bikes with expensive parts.
Factors to Consider When Choosing Zero Depreciation Add-On
Zero Depreciation is valuable, but it’s not always necessary for every rider. Here are the key factors to keep in mind when deciding if this add-on is right for you:
Age of the Bike
Most insurers only allow zero-dep on bikes up to 5 years old. If your bike is older, the benefit decreases, and some insurers may not offer the add-on at all.
Value of the Bike
High-value or premium bikes have expensive parts. A small dent or scratch can cost a lot to repair. Zero Depreciation is especially useful here because it protects the real cost of replacement.
Riding Frequency and Route
If you ride daily or in busy, accident-prone areas, the chances of damage increase. Zero-dep helps reduce frequent repair costs, making claims predictable.
Cost of Parts
Plastic, rubber, nylon, fiber, and electronic parts depreciate faster. If your bike has many such parts, zero-dep ensures they are covered at full value during claims.
Number of Claims Allowed
Some policies limit the number of times zero-dep can be used in a year (commonly 2 claims). Consider whether this fits your riding pattern.
Premium Affordability
Check how much extra premium you’ll pay for zero-dep. If the cost is reasonable compared to your potential claim savings, it’s usually worth it.
Deductibles and Exclusions
Zero-depreciation removes depreciation deductions, but standard deductibles and excluded damages still apply. Make sure you understand the fine print.
Claim Experience and Support
Choose an insurer that processes claims efficiently. SMC Insurance not only provides clear zero-dep options but also guides you through the claim process so there’s no guesswork or hidden delays.
By considering these factors, you can protect your bike and your wallet at the same time. Zero depreciation is a small investment that can pay off big when you need it most.
Other Bike Insurance Add-ons
A Zero Depreciation cover is one smart way to boost your bike’s protection. But it’s not the only one. Depending on how and where you ride, a few other add-ons can make your insurance far more complete. Here are some you should know about:
Roadside Assistance
A flat tire in the middle of traffic, a dead battery miles from home. These things happen, and that’s where Roadside Assistance helps. With this add-on, help reaches you on the spot. Even if you need towing, fuel delivery, minor repairs, or emergency transport, help is just a call away. It’s especially useful for long-distance riders or those who travel frequently.
Engine and Gearbox Protection
Standard policies don’t usually cover damage to the engine or gearbox caused by water entry or oil leakage. Engine & Gearbox Coverage takes care of that gap. It pays for repairs or replacement if your bike’s engine or transmission suffers damage due to reasons like flooding or lubrication failure. This one’s a must if you live in a flood-prone or coastal area.
Personal Accident Cover for the Rider
It offers financial protection to the rider in case of accidental death or permanent disability. It provides a lump-sum payout to you or your family, ensuring financial stability during tough times. Every bike policy in India includes a basic level of PA cover, but you can enhance it for higher protection.
Theft Protection / Natural Calamities Coverage
Some losses are beyond anyone’s control like theft, fire, floods, or earthquakes. Theft Protection and Natural Calamities Coverage ensure your bike’s insured value is reimbursed if it’s stolen or completely damaged by such events. It’s essential for riders who park outdoors or live in areas vulnerable to natural disasters.
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Quick Response
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Zero Depreciation Bike Insurance is one of those add-ons that genuinely make a difference when you need it most. It removes the stress of depreciation cuts and helps you get the true value of your bike parts during claims. It’s especially useful for new or premium bikes, frequent riders, and anyone who wants peace of mind while on the road.
At SMC Insurance, we make it simple to compare, understand, and buy the right policy. With the right mix of add-ons like Zero Depreciation, you secure its value.
FAQs
Zero Depreciation, also called Nil Depreciation, is an add-on that lets you claim the full cost of replacing bike parts without any deduction for depreciation. It means your insurer pays for eligible parts at 100% of their value during a claim.
Yes. For new, expensive, or regularly used bikes, it’s absolutely worth it. The small increase in premium can save you a large sum during repairs after an accident.
Most insurers offer Zero Depreciation only for bikes up to 5 years old. Some may extend it after inspection, but this varies by insurer. It’s best to confirm eligibility before renewing.
It covers depreciation on parts made of plastic, rubber, nylon, and fiber. Some insurers also include batteries, tyres, and other components. Labour charges, deductibles, and damages excluded under the main policy are not covered.
Generally, no. The add-on is meant for newer bikes because older models already have high depreciation. However, a few insurers may allow it after inspection or for select models.
Yes, adding this cover raises your premium by around 10–20%, depending on your bike’s make, model, and age. But the extra cost often pays off in one good claim.
Coverage usually applies across India, but terms can vary by insurer. Always check your policy document or ask your advisor at SMC Insurance if you ride long distances or across states regularly.
Disclaimer: The information provided on this platform is intended for general awareness and educational purposes. While every effort is made to ensure accuracy, some details may change with policy updates, regulatory revisions, or insurer-specific modifications. Readers should verify current terms and conditions directly with relevant insurers or through professional consultation before making any decision.
All views and analyses presented are based on publicly available data, internal research, and other sources considered reliable at the time of writing. These do not constitute professional advice, recommendations, or guarantees of any product’s performance. Readers are encouraged to assess the information independently and seek qualified guidance suited to their individual requirements. Customers are advised to review official sales brochures, policy documents, and disclosures before proceeding with any purchase or commitment.
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