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Depreciation Shield in Two-Wheeler Insurance Explained

Updated On Oct 24, 2020

All about depreciation shield in two-wheeler insurance explained.

A standard two-wheeler insurance policy be it standalone own-damage or comprehensive two-wheeler insurance policy, can only give you the basic coverage. But to be prepared for maximum uncertainties in life, you need greater coverage, which can be availed with add-on covers. Bike add-on covers are additional benefits that can be purchased at affordable premiums along with a base two-wheeler insurance policy. Add-on benefits are recommended because they enhance the coverage under your existing insurance policy, thereby making it more useful and valuable. One of the most popular add-on covers in two-wheeler insurance is depreciation shield, also known as zero depreciation cover.

What is Depreciation Shield Add-on?

A basic two-wheeler insurance policy does not cover the cost of depreciation incurred by your two-wheeler and its parts. Hence the rider or the owner of the two-wheeler has to pay for the same. But if you own a zero depreciation add-on cover, then you are safe as it offers you protection against such expenses. Please note that the depreciation shield provides coverage for tyres, tubes and batteries at 50% and on all other parts at 100%.

Two-Wheeler Parts

Depreciation Applicable

Without Depreciation Shield Cover

Depreciation Applicable

With Depreciation Shield Cover

Batteries, nylon, tyres and tubes, rubber



Fiber glass materials



All other parts



Benefits of Zero Depreciation Cover

With a zero depreciation cover, you can avail the following benefits:

  • It helps you save the sum of money which otherwise you would have lost as depreciation of the two-wheeler
  • You get enhanced coverage under your existing two-wheeler insurance policy

Zero depreciation add-on cover is the best option for people who own two-wheeler with expensive parts. But before opting for the same, you must understand its inclusions and exclusions.

Inclusions Under Zero Depreciation Cover

Zero depreciation cover comes with the following inclusions:

  • 100% depreciation cover for all parts except tyres, tubes, batteries, rubber, nylon, plastic and fibreglass parts.
  • Compensation for cost of repair or replacement of depreciated parts at the time of claim settlement

Exclusions Under Zero Depreciation Cover

Following are the exclusions under zero depreciation cover:

  • 70% depreciation cover on fiberglass parts
  • 50% depreciation cover on tyres, tubes, batteries, nylon and rubber parts


Zero depreciation add-on cover is a pocket-friendly add-on that gets you covered for the depreciable parts of your two-wheeler. Though it is not mandatory to purchase a zero depreciation cover, it is recommended if you want to avail greater benefits under your standard two-wheeler insurance policy. You can purchase the add-on cover easily at InsuranceDekho when buying a new two-wheeler insurance policy or when renewing an existing one.

Types of Bike Insurance You Should Know:

Third Party Two Wheeler Insurance

Comprehensive Two Wheeler Insurance Policy

You May Also Like To Read:

Own Damage Two Wheeler Insurance

Two Wheeler Insurance Add-ons

Bike Insurance Details by Registration Number

Fine for Driving Two Wheeler Without Insurance

How to Get Duplicate Two Wheeler Insurance Copy Online

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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