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Difference between comprehensive and zero depreciation bike insurance
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Difference between comprehensive and zero depreciation bike insurance

Imtiaz bought his first scooter for an on-road price total road cost of ₹76,000. Being his first vehicle, he maintained it meticulously.

Five years later, Imtiaz wanted to sell his scooter and put the money towards a down payment for a sports bike. He hoped for at least ₹60,000 for the sale of his scooter. Imagine his disappointment when the maximum price he could get for his scooter was ₹35,000!

What happened to Imtiaz’s scooter was a classic case of depreciation – which could have been avoided with the right policy.

You can get two types of insurance for two-wheelers: comprehensive insurance and zero-depreciation insurance. Let us first take a look at comprehensive insurance.

What Is Comprehensive Insurance?

When you renew the insurance for your bike, the insurance agent will most likely recommend that you buy a comprehensive insurance policy. And there’s a solid reason for it. 

A comprehensive two-wheeler cover protects you not only against the damage or theft of your vehicle but also natural calamities and third-party liability.

Third-party liability means that a third party is also entitled to compensation against any personal injury or property damage connected with your bike. It’s the cheaper option but lacks the additional benefits you get from a comprehensive insurance policy.

What Is Zero-Depreciation Insurance?

To understand zero-depreciation insurance, let’s review the concept of depreciation. Depreciation occurs when the face value of property reduces due to normal wear and tear over time.

You can get zero-depreciation insurance that protects your vehicle from depreciation. This is an add-on insurance policy that considers the un-depreciated original value of the vehicle at the time of making a claim.

In the case of Imtiaz, zero-depreciation insurance would have increased the resell insurance value of his scooter. Naturally, he would have had to pay a higher premium for this type of bike insurance policy.

Difference Between Zero-Depreciation and Comprehensive Bike Insurance

Other than the difference in cost, you may wonder what other differences exist in zero-depreciation vs. comprehensive insurance cover. Here’s what you need to know:

  •  Premium Rate: The cost of a standard comprehensive insurance policy is somewhat lower than that of a zero-depreciation policy.
  •  Claims Value: In a comprehensive insurance policy, your insurer deducts the depreciation amount from the vehicle’s original value. Conversely, a zero-depreciation policy excludes the depreciation amount from the total claim value.
  •  Repair Costs: A zero-depreciation policy covers the cost of all repairs, including the replacement cost of plastic parts. However, a comprehensive insurance policy will not cover certain costs. 

Benefits of Taking Zero-Depreciation Insurance Cover

A zero-depreciation insurance policy can benefit you in several ways. Here are a few of the major advantages of this policy:

All Spare Parts Replacement Is Covered

The primary advantage of zero-depreciation insurance cover is that ALL spare parts replaced for repairs are covered under the policy.

High-End Bikes

If you own a high-end bike, the premium you pay for a zero-depreciation policy will be much less than what you will have to shell out for replacing spare parts. This means you can save a lot of money with such a policy!

There is a spurt in the purchase of high-end bikes today. The Society of Indian Automobile Association (SIAM) claims that the sale of 500 CC to 800 CC motorcycles increased by 130% in 2019.

So, if you plan to join the ranks of these proud owners, then a zero-depreciation insurance policy might be an added benefit for you.

Accident-Prone Zones

If you regularly drive in accident-prone areas like in a heavily crowded marketplace, there is a higher likelihood of your bike suffering damage. Zero-depreciation insurance can help you in this case.

New Drivers

If you or a member of your family is a new driver, there is a high possibility of a collision and subsequent damage to your vehicle. A zero-depreciation insurance policy can benefit you greatly under such circumstances.

Benefits of Taking Comprehensive Insurance Cover

A comprehensive insurance policy can benefit you in the following different ways:

Includes Third-Party Cover

A comprehensive bike insurance policy includes a third-party cover which is made mandatory by the Government of India under the Motor Vehicles Act, 1988.

Accident Cover

If your bike has an accident and it gets damaged, your insurance company will cover part of the repair costs (not all). Thus, it provides you with some financial relief during such an unexpected crisis.

Rider’s Injury Also Covered

In the case of personal injury to the rider resulting in hospitalization, disability, or even death, your insurance company will pay an amount to cover the costs. An amount will be paid to the next of kin in the policyholder’s unfortunate demise in a bike accident.

Add-Ons Provided

You can opt for additional benefits from a comprehensive bike insurance policy that you do not get with other types of insurance policies by paying a nominal extra amount.


As we have mentioned at the beginning of this article, it is mandatory for your bike to be insured in India. You will be liable for prosecution if your two-wheeler is not insured. However, you are entitled to multiple benefits with an insurance policy.You may even discuss zero-depreciation car insurance vs. comprehensive car insurance with your agent. The key features of these plans for cars and two-wheelers remain similar, where the primary difference would be in the amounts involved.


Which policy is best: comprehensive or zero-depreciation?

The best insurance policy is one that fits your requirements. For example, a comprehensive insurance two-wheeler policy will provide you with multiple benefits. But if you have a major accident that needs major repairs, this policy won’t cover all the parts.
You pay more for a zero-depreciation policy, but if you have an expensive bike, you will save a lot on parts replacement because it covers all parts, even the plastic ones not covered by comprehensive insurance. So, always look for a policy that will meet your basic needs.

Is zero depreciation required for bike insurance cover?

Zero depreciation cover is not mandatory for insuring your bike. Instead, you can take this add-on policy if you have special requirements like a high-end bike with expensive parts, regularly driving in an accident-prone area, or if you are a learner.

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