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Zero Depreciation Versus Comprehensive Two Wheeler Insurance Cover

Published on September 23, 2019. EST READ TIME: 5 MIN

Buying a two wheeler insurance policy is a legal mandate in India as per the Motor Vehicles Act, 1988. The Motor Vehicles Act, 1988 makes it mandatory for a two wheeler owner to insure his two-wheeler with a third party liability insurance policy. The coverage under third-party insurance is limited as it only covers the costs arising out of damages caused to third party or property. Due to this, many vehicle owners opt for a comprehensive cover as it is a mix of own damage and third party cover. Just by paying a little extra premium, one can insure his prized possession with a comprehensive two wheeler policy.

Since the insurance company offers a wide range of options for providing coverage to your two wheeler, you may often end up getting confused between comprehensive and zero depreciation cover. But ideally, owing to the different coverage offered under comprehensive cover and zero depreciation cover, these covers are completely different from one another and in fact zero depreciation cover is an add-on that you can purchase to supplement your comprehensive two wheeler policy. Read below in detail to understand the difference between the two.

What is zero depreciation cover?

Depreciation means the reduction in the value of your vehicle and its parts over the years of its usage. At the time of making a claim, you may end up paying a large amount of claim amount from your pocket since the insurance company deducts depreciation amount charged against the damaged parts . But opting for a zero depreciation cover can help you save on the out of pocket expenses as with this cover, the depreciation amount charged against the damaged parts would be borne by the insurance company.

Tyres and batteries are excluded and this add on cover can be exercised only in case of partial loss and not in case of total loss/theft

What is comprehensive insurance?

Comprehensive insurance is a type of insurance policy that protects your vehicle against any damage in addition to any third party liability in terms of death/bodily injury/property damage. Along with comprehensive insurance policy, you can opt for various add-on covers such as zero depreciation and , roadside assistance .

Exclusions of comprehensive insurance

  • Consequential damage is not covered

  • Coverage is not provided when driving under the influence of alcohol or drugs

  • If the policy is not in force

  • If the vehicle is used for commercial use

  • If the vehicle is used for malicious activity

  • The only difference is that in zero depreciation customer gets depreciation amount against the damaged parts and is available only up to 5 years old vehicles.

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

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle


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