Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Updated On Feb 14, 2022

Comprehensive and Zero Depreciation Bike Insurance Policy Benefits - Which one is Better?

Comprehensive Insurance + Zero Depreciation Bike Insurance = 100% Peace of Mind.

Insurance is required for two-wheelers as well. It is a requirement of the Indian Motor Tariff for all motor vehicles (bikes, cars, trucks, etc.) to have third-party liability coverage. Liability-only insurance is a type of basic insurance that offers coverage to a third party if they are injured or their property damaged as the result of an accident involving your bike.

In order to secure their bikes, most people opt for Own Damage insurance cover rather than Third-Party coverage, which covers liability only towards third parties. Comprehensive Bike Insurance combines Third Party Liability Coverage with Own Damage Coverage.

Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Here is an explanation to enhance your understanding of the Comprehensive Insurance Cover vs Zero Depreciation Cover for bike.

What is Comprehensive Two Wheeler Insurance Cover?

As the name implies, Comprehensive Insurance can be understood as a complete package for bike insurance. It incorporates the cover for the damage incurred by a third party as well as damage incurred by your bike in the event of an accident or any other unfortunate event involving your bike.

When is a Comprehensive Bike Insurance Cover Applicable?

A comprehensive bike insurance plan is applicable in the following scenarios:

  • Theft of bike
  • Road accident
  • Riots or strikes
  • Fire or explosion
  • Terrorist activities
  • Damage while traveling by air, rail, road, water
  • Natural calamities like earthquakes, floods, cyclones, etc.

Exclusions of Comprehensive Bike Insurance Cover

A comprehensive bike insurance plan is not applicable in the following situations:

  • Coverage is not applicable after the policy expires
  • Consequential damages are not entitled to get the coverage
  • No coverage if driving is done under the influence of alcohol or drugs
  • If the private vehicle is used for commercial purpose or any malicious activities

Your bike is still at risk of depreciation despite being covered by a comprehensive policy. The wear and tear on your bike can result in depreciation over time. Depreciation charges are by default deducted from your claim amount at the time of settlement.

However, you can do away with the depreciation charge by opting for an add-on cover known as Zero Depreciation Cover.

What is Zero Depreciation Two-Wheeler Insurance Cover?

With time, the value of your bike diminishes due to wear and tear. To avoid depreciation lowering your bike insurance claim amount, an add-on cover known as Zero Depreciation Cover can be purchased. This cover is also known as Nil Depreciation Cover or Bumper to Bumper cover.

It is the most selling add-on cover as it secures the depreciation amount of your claim. Generally, it is available for bikes up to 5 years of age. However, the eligibility criteria varies from insurer to insurer. With this cover, all the parts of your bike will be insured by 100% except tubes, tyres, & batteries which will be covered at 50%.

Though, paying a bit higher premium for this add-on can help you gain an increased claim amount as automated depreciation applicable would go ineffective and most of the parts will be covered with 100%.

Difference Between Comprehensive vs Zero Depreciation Bike Insurance Policy


Comprehensive Policy

Comprehensive Policy + Zero Depreciation Cover

Premium Amount

Premium will be normal

Premium will be higher

Depreciation Rates

With the age of the bike, the increasing depreciation rate will be applied on the bike and claim amount will be reduced

The depreciation rates will not be applicable on the bike and the claim amount will automatically get increased

Claim Settlement Amount

Lower claim settlement amount as depreciation is applied on some body parts

Higher claim settlement amount as depreciation rates are considered as nil

Benefit of Zero Depreciation Bike Insurance Policy

When a two-wheeler vehicle ages, its value tends to depreciate. The fact is worrisome for many bike insurance policyholders as it will make them receive a lesser value as a compensation after an accident or theft. On this note, the zero depreciation add-on cover is offered by different two-wheeler insurance companies due to which the value of your bike or scooter will be considered to be as valuable as on the day you purchased it from the market. 

With the inclusion of a zero depreciation add-on cover in your bike insurance policy, if your bike or scooter gets damaged due to an accident or a mishap, the default depreciation, which may arise due to wear and tear of your vehicle’s body parts, will not be considered while evaluating the claim amount. So, with this add-on cover, the insurance company will provide you 100% of the entire repair expenses of the vehicle body part which is repaired or replaced, after deducting deductible, if any. In short, the zero depreciation will let you get the amount for complete loss. 

Benefits of Comprehensive Bike Insurance Policy

It is quite important and prudent to select a comprehensive bike insurance policy to secure your two-wheeler vehicle due to the below given factors:

  • It provides you with comprehensive security for your two-wheeler vehicle through coverage against different types of unfortunate events which may result in hefty expenses in the future.
  • The insurance company provides you with financial assistance when the insured two-wheeler vehicle is damaged or lost and requires repair or replacement, which saves you from sustaining high repair costs.
  • Though the comprehensive bike insurance premium rates are higher in comparison to a third-party bike insurance policy, it provides an extensive policy coverage for an array of unforeseen situations.

Also Read

IRDAI Withdraws Sale of Comprehensive Motor Insurance Policy

All About Bike Insurance Zero Depreciation Cover


A variety of motorcycle insurance plans are available nowadays to protect you from a variety of risks. Comprehensive motorcycle insurance offers a fair amount of coverage. Nevertheless, in order to fully protect your vehicle and get a maximum claim amount, you must have zero depreciation cover.

Disclaimer: This article is issued in 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.

Explore more before buying Bike Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy# within 5 mins
    • More than 50 lakhs happy customers
    • Claim Support available all 7 days of the week

    People Also Read