Digit Zero Depreciation Add-on

The reduction in the value of a bike with passing time is taken into consideration as a depreciation factor by every insurance company. Depreciation is the process of losing monetary value of the two-wheeler due to factors such as wear and tear, age of the two-wheeler etc. Process of depreciation takes place over a period of time. Due to depreciation deductions you may have to pay a large amount from your own pocket at the time of filing a claim. A zero depreciation cover in such circumstances can be very useful, this cover can help the policyholder avail a claim settlement amount without considering depreciation deduction.

There is a deduction of depreciation charges from the claim amount at the time of claim settlement. To prevent this deduction, the policyholders can opt for Zero Depreciation cover along with a standalone own damage or a comprehensive bike insurance policy. Digit Zero Depreciation add-on prevents the loss of claim amount in lieu of depreciation.

Availing Digit Zero Depreciation cover ensures maximum claim amount irrespective of the depreciation factor. It offers free of cost repair and replacement of the depreciable parts of the insured’s bike.

Benefits of Digit Zero Depreciation Cover

Although you may have to pay an additional premium for the Zero Depreciation add-on cover, this add-on helps in enhancing the existing cover. Below mentioned are some benefits of Digit Zero Depreciation Cover:

1. Adds More Protection: Zero depreciation add-on cover provides more coverage and helps in enhancing the existing cover offered under a two-wheeler insurance policy. This add-on cover provides extensive coverage as this add-cover helps in availing a claim settlement amount without considering the depreciation deductions.

2. Higher Claim: If you choose to opt for Zero depreciation cover with your two-wheeler insurance policy it will expand the coverage. Zero Depreciation add-on cover eliminates the out of pocket expenses that the policyholder may have to bear at the time of filing the claim. Zero depreciation cover reduces the risk of lower claim amount as claim amount for a two-wheeler insurance policy with a zero depreciation cover is calculated without depreciation deductions.

3. Saves Money: When you buy a zero depreciation add-on cover for your two-wheeler insurance policy, the premium of the policy increases slightly but in case an unforeseen event occurs, no depreciation deductions shall be included in the two-wheeler claim amount because the claim amount shall be calculated without considering the depreciation which helps the policyholder to save money.

Depreciation Rate Applicable on Bike With And Without Zero Depreciation Add-on

Below mentioned aspects shall be covered under a Digit Two-Wheeler Insurance policy with Zero Depreciation Cover:

• Compensation or Coverage for depreciable parts is provided to the policyholder for depreciable parts such as nylon, rubber, fibreglass and plastic parts.
• A two-wheeler policy with a zero depreciation cover may also cover partial damages to the battery and tyres without considering the depreciation.
• Cost of repairs or replacement born by the policyholder at the time of claim settlement shall be provided to the policyholder.
• You add the zero depreciation cover at the time of renewal of the purchase of the policy.

What Is not Included Under a Digit Two-Wheeler Insurance Policy with Zero Depreciation Cover?

Below mentioned are the aspects which shall not be covered under a Digit Two-Wheeler Insurance policy with Zero Depreciation Cover:

• Damage to insured vehicles caused due to mechanical faults/failure
• Loss or total damage to the insured vehicle shall be covered or compensated for.
• Damage to the uninsured items such as tires, gas kits or b-fuel kit of the two-wheeler shall not be covered or compensated for.
• Routine ageing/wear and tear will not be covered under a two-wheeler insurance policy with zero depreciation cover

Factors Affecting Digit Zero Depreciation Cover

Digit Zero Depreciation comes with multiple benefits provided that the following conditions are fulfilled:

• The age of the bike should not exceed 5 years.
• This cover can be claimed only twice in the entire policy tenure.
• Repair and replacement due to common wear and tear do not get covered.
• Coverage is not provided in cases of total loss, mechanical and electrical breakdown of the insured’s bike.