NIL Depreciation is also known as zero Depreciation or Bumper to Bumper cover that leaves out the ‘depreciation’ factor from the coverage. It basically means that if your car or bike gets damaged following a collision, no depreciation is subtracted from the coverage of wear and tear of any body parts of your vehicle.
It provides a comprehensive coverage without factoring in for depreciation. … For instance, if your bike was involved in an accident and eventually suffered damages due to the collision, your insurance provider will cover the entire cost of the losses incurred when you file a claim.
We can opt this cover with a little additional premium to protect additional depreciation charges at the time of claim.
Inclusions under the Nil Depreciation Add-on- cover:
This add-on cover is offered to be availed by the policyholders generally two times during a policy year.
The zero depreciation is applicable generally for new vehicles which are normally not more than five years old in age.
The standard depreciation rate on a bike insurance policy lies between 0% to 40%, yet with this add-on cover, you can easily claim the complete amount.
With a zero depreciation policy, the policyholder is provided coverage for depreciation on your vehicle’s parts such as for all nylon, rubber, fiberglass, and plastic parts.
Exclusions under the Nil Depreciation Add-On Cover -
No compensation will be offered for total loss or damage.
Tyre, tubes and batteries are covered at the rate of 50%.
Losses or Damages to uninsured parts like gas kits, bi-fuel kits, or any mechanical breakdown.
