Are fibre parts of your bike covered under the bike insurance policy?

Posted on: Jul 6, 2023 | | Written by:

Are fibre parts of your bike covered under the bike insurance policy?

Published on July 06, 2023. EST READ TIME: 3 minutes

Are bike fibre parts covered under bike insurance

You must be aware of the fact that as soon as you purchase a bike, its value begins to diminish with time due to depreciation. Even if you maintain a bike cover, the entire cost of these depreciable components remains uncovered, except for the zero depreciation bike insurance plan.

This article highlights all the plausible aspects that fall under this category.

Understanding depreciation in bike insurance cover:

Depreciation is the technical term applied to the value reduction of every form of real asset (except land and building) over time. Your bike is no exception.

Because of this, under any accidental circumstances, the entire cost of the depreciable parts of your beloved vehicle is not fully covered by your insurance policy. You need to bear such costs out of your pocket.

Some of the most significant depreciable parts of a two-wheeler include the tube, tyres, plastic, nylon, fibre, etc. Moreover, the deducted value of depreciation of all these parts even varies from each other.

Deducted percentage of depreciation of the bike parts:

The percentage of the depreciation deduction depends on the material of the two-wheeler component are as follows:

Depreciable parts of the two-wheeler	Deducted percentage of depreciation
Nylon, plastic, and rubber components of the two-wheeler	50%
Tyres and tubes of the two-wheeler	50%
Parts made of fibreglass	300%
Glass parts	0%

This chart depicts the percentage of loss that will be borne by your insurance coverage. However, the age of the concerned vehicle also plays a significant role in this respect.

Age of the vehicle	Percentage of depreciation
Within 6 months	Nil
Between 6 months and 1 year	5%
Between 1 year and 2 years	10%
Between 2 and 3 years	15%
Between 3 and 4 years	25%
Between 4 and 5 years	35%
Between 5 and 10 years	40%
Above 10 years	50%

However, if you maintain a special add-on called the zero depreciation cover, you won’t need to spend anything from your pocket. However, you must ensure that this add-on facility is only available for comprehensive plans and not for third-party cover.

What is zero depreciation bike insurance add-on cover?

This is an additional benefit that you purchase along with the base comprehensive bike insurance plan with a nominal excess payment. You can buy this handy add-on to cover the depreciation costs.

Differences between the comprehensive bike plan and zero depreciation bike add-on cover

Some of the basic differences that exist between a comprehensive bike plan and zero dep add-on cover include the following:

Critical aspects of differences	Comprehensive bike plan	Zero depreciation add-on cover
Procedure for claim settlement	Depreciated deduction in per cent for every different part of the two-wheeler	Total payout for all the parts of the vehicle by the concerned insurance provider
Depreciable costs of the bike parts	Full coverage is not possible, the concerned policyholder needs to pay out a certain percentage of the total cost	Entirely covered
Suitability according to the age of the two-wheeler	Up to 15 years	Up to 2 years
Amount of premium	Comparatively lesser than the zero depreciation cover	The premium amount is comparatively 15-20% higher, as it ensures total coverage
Amount of claim	Limited according to the applicable depreciated value	Total payment against the entire garage bill

Advantages of having a zero depreciation add-on coverage

Zero depreciation add-on cover comes with a host of handy advantages, the most striking among them being that all the depreciable components of the concerned vehicle get covered under this. This frees you from paying the percentage of deductibles. This exclusive cover offer ensures your peace of mind, by covering the entire amount of garage bills when the need arises.

Exclusions of zero depreciation add-on coverage:

Although zero depreciation add-on comes with several advantages, yet there are certain drawbacks too. Certain typical aspects are excluded from this add-on:

1. You are eligible for a maximum of no more than 2 claims per year

2. This add-on does not cover the natural wear and tear of the parts of the two-wheeler that requires any replacing or repairs

3. This special cover is available for up to 2 years of the age of the concerned bike

4. In the case of a total loss of the two-wheeler, or theft or damage beyond repair, this add-on proves to be ineffective

5. Your concerned insurance provider will exclusively accept your own damage claim settlements in this respect.

Who should buy zero depreciation add-on cover?

If you have purchased a brand new two-wheeler, it is best that you opt for a comprehensive insurance policy for the bike that includes zero depreciation add-on. It will cost you slightly more on the premium payout front. However, it will competently reduce your out-of-the-pocket expenses when your bike fibre parts need replacement. This is also highly helpful if you own a sports bike.

Moreover, if your two-wheeler’s age is no more than two years, then also you can go for this add-on facility. If you reside or bike in any accident-prone zone or heavily trafficked locality, this add-on can prove to be highly helpful. It saves you plenty of time, money, and effort.

Conclusion

The above discussion sheds light on all the important aspects of zero dep add-on cover and the span of insurance coverage if you include it in your comprehensive cover. If you buy this cover all the depreciable bike components including the fibre parts will come under its coverage and you won’t be required to pay anything out of your pocket for repairs and replacements of these parts.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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