Zero Depreciation Insurance Two-Wheeler Insurance: A Complete Guide
🔍 What is Zero Depreciation Insurance in Two-Wheelers?
Zero Depreciation (ZD) insurance is an add-on rider to a standard comprehensive two-wheeler insurance policy. It waives off depreciation deductions on parts during a claim settlement. That means if your bike gets damaged in an accident, your insurer covers 100% of the cost of replacing parts, excluding consumables, without reducing the payout based on age-related wear and tear.
🧾 Depreciation Rates Without ZD Cover (As per IRDAI norms)
| Bike Part Type | Depreciation % Applied |
|---|---|
| Rubber, Plastic, Nylon | 50% |
| Fiberglass | 30% |
| Glass | 0% |
| Metal Parts | 5%-50% (based on age) |
For example, if your plastic mudguard costs ₹1,000, you’d only get ₹500 with a regular policy (due to 50% depreciation). With Zero Depreciation? You get the full ₹1,000.
🛠️ What Does Zero Depreciation Insurance Cover?
Covered:
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Accidental damage to the bike
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Full cost of plastic, rubber, fiber, and metal parts
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Replacement without depreciation deduction
Not Covered:
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Engine damage due to water/oil entry (unless covered by engine protect add-on)
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Mechanical/electrical breakdowns not linked to accidents
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Normal wear and tear (e.g., brake pads)
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Damages due to driving under the influence or without a license
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Consumables like oil, coolant, nuts and bolts (unless consumables cover is added)
📈 Eligibility Criteria
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Typically available for bikes up to 5 years old
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Available with comprehensive insurance plans only
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Renewed annually, subject to insurer’s terms
⚠️ Some insurers now offer Zero Depreciation cover for bikes up to 7 years old under specific conditions.
💸 How Much Does It Cost?
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Premium Impact: Adds ~15-20% to your base comprehensive premium
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Example: If your comprehensive premium is ₹2,000, the ZD add-on might cost ₹300-₹400 more
It’s a cost-effective deal when compared to out-of-pocket expenses for part replacements after a crash.
🚦 When is Zero Depreciation Insurance Most Beneficial?
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You own a high-value or new two-wheeler
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You ride frequently in urban or traffic-heavy areas
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You’re a new or young rider (higher risk profile)
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Your bike has expensive parts (e.g., fairings, alloy wheels, disc brakes, ABS units)
🏍️ Real-World Example
Scenario:
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Your 1-year-old bike meets with a minor accident
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Replacement parts: Side fairing (₹3,000), Indicator (₹800), Footrest (₹1,200)
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Without ZD: Claim settled at ~₹2,500 (depreciation applied)
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With ZD: Claim settled at ₹5,000+
Savings: You recover the full cost, potentially saving ₹2,500+ in a single claim
🏦 Top Indian Insurers Offering Zero Depreciation Add-on
| Insurance Company | Max Vehicle Age | Notable Feature |
|---|---|---|
| ICICI Lombard | 2–5 years | Covers up to 2 claims/year |
| HDFC ERGO | Up to 5 years | Includes fiber/plastic parts coverage |
| Bajaj Allianz | Up to 5 years | Includes road assistance |
| Tata AIG | Up to 7 years* | Covers metal, plastic & fiber components |
| Reliance General | Up to 2 years | Fast claim process via mobile app |
✅ Pros and Cons
✅ Pros:
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Full reimbursement on part replacements
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Excellent for expensive or premium bikes
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Saves money during multiple small repairs
❌ Cons:
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Slightly higher premium
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May limit number of claims per year (usually 1–2)
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Not available for very old bikes
📝 How to Buy It
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During new policy purchase: Select “Zero Depreciation” add-on
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During renewal: Check for eligibility and add the rider
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Online Comparison: Use aggregators like insuremile to compare premiums with/without ZD
🛡️ Pro Tip: Combine with Other Add-Ons for Full Protection
To build an ultra-safe insurance portfolio for your bike, consider combining Zero Depreciation with:
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Engine Protect Cover
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Return to Invoice Cover
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Consumables Cover
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Roadside Assistance
🔚 Conclusion: Is Zero Depreciation Insurance Worth It?
If you want peace of mind, zero surprises during claims, and better value for your insurance premium, then Zero Depreciation is 100% worth it — especially in the first 3–5 years of your bike’s life. It’s a small additional cost for a significant increase in financial protection.
