What’s Zero Depreciation in Bike Insurance?

The saying, “Old is Gold”, cannot be applied everywhere. Age comes with its drawbacks. Just like how people start having ailments when they age, vehicles also face issues when they become old. Six months from when a bike is bought, the motorcycle’s value begins to drop. This drop is known as depreciation. It is a natural phenomenon that reduces the value of your asset over time, and hence the value of your two-wheeler also diminishes with time. By default, the responsibility to bear the depreciation cost amount rests with the owner and not the bike insurance company.

Moreover, when a bike must be sold after a few years, the depreciation value is taken into consideration, and the bike is sold for a rate accordingly. But how to maximise benefits without allowing this factor to diminish the value? Simply with an add-on cover known as Zero Depreciation cover. It is for all vehicles until they turn five years old.

While comprehensive bike insurance covers damage expenses and repairs without covering depreciation charges, a zero-depreciation bike insurance add-on would help protect against depreciation when a claim is filed. It provides compensation for financial burdens and losses incurred due to accidents.

Following are the inclusions and exclusions of a two-wheeler insurance policy with zero depreciation cover:


  • Compensation for depreciable parts such as nylon, rubber, fibreglass, and plastic parts.
  • Compensation for the cost of replacement and repair at the time of claim settlement
  • The number of permissible claims under the two-wheeler insurance policy’s zero depreciation cover can vary based on the insurance.
  • Some plans may also cover partial damages to batteries and tyreswithout depreciation calculation.
  • Zero depreciation without excess is available for designated two-wheeler models only, so read the policy documents carefully to avoid confusion later.


  • Any kind of uninsured perils
  • Total damage or loss of the vehicle
  • Routine ageing, wear, and tear are not covered
  • Mechanical fault damages are also not covered under this add-on
  • Damage caused due to uninsured bike items are not covered

Zero Depreciation is also known as Nil Depreciation or Bumper to Bumper Cover, and this add-on can be purchased at the time of buying a policy or at the time renewing a policy.

Zero Depreciation Cover broadens the basic comprehensive car insurance policy and settles repairs and replacements of insured parts without considering the depreciation value. While buying an insurance policy, consider including add-ons that would enhance your policy and benefit you. Keeping in mind the well-being and needs of the people, Cholamandalam MS offers its two-wheeler insurance with zero depreciation add-on option to protect your motorcycle better!

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