Ever since the government of India mandated the possession of valid vehicle insurance for all drivers on Indian public roads, insurance providers took it upon themselves to curate varied policies to cater to their customers. Apart from the options available, they also allow the customers to customize their policies, as per their needs and requirements. But, most people are often confused as to what to opt for, because they are spoilt for choice. All these policies are similar, yet different in terms of their coverage, exclusions, and their benefits. If there are two policies that most people have difficulty choosing between for their bikes, then it is the Comprehensive and Zero Depreciation Bike Insurance. Read further to know more about these policies, their coverage, and their benefits.
Let us start by taking a look at both of these policies.
Zero Depreciation Bike Insurance:
Any vehicle is said to have depreciated, the moment it leaves the showroom. Further, the regular usage of bikes depreciates its value, due to wear and tear. The constant decline in the value of your bike due to the usage and age of the vehicle is depreciation. Due to this, every time you make a claim, your insurance provider will evaluate your bike for its depreciation value and then will compensate you accordingly. This is why insurance providers have come up with zero depreciation bike insurance to help negate the depreciation value and to derive the maximum amount during your settlement. This add-on is also known as Nil Depreciation cover or Bumper to Bumper cover.
Comprehensive Bike Insurance:
Comprehensive bike insurance, as the name suggests, provides exhaustive coverage to your bike. Often considered the ideal policy for bikes, the policy is a combination of third-party liability and own damage policies. Not only does it protect you against any and every legal and financial liabilities, but also any damages incurred by your bike in case of an accident or any other unfortunate events like natural calamities, theft, or fire.
Zero Depreciation Cover Vs Comprehensive Bike Insurance:
The following are some of the key differences between both covers.
- A comprehensive policy provides an overall coverage, whereas the zero depreciation cover only negates the depreciation value of the bike.
- Unlike the comprehensive bike insurance policy, the zero depreciation cover is an add-on and not a standalone policy.
- The premiums for the comprehensive policy are significantly lower when compared to opting for a basic policy and zero depreciation cover.
- The comprehensive policy takes into account the depreciation value of the bike, unlike the zero depreciation cover where you can receive a maximum amount for your claim.
- Since the comprehensive policy considers the depreciation value, a part of the bill will have to be borne by you, which is not needed in the zero depreciation cover.
The golden rule in choosing the right policy is to make sure that you haven’t overinsured or underinsured your vehicle. Whether you opt for a zero depreciation cover along with the basic policy or choose to go with the comprehensive policy, see to it that it fits right into this criteria.