Does the Bike Insurance Policy Cover Fiber Parts?

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Is Plastic/Fibre Parts Covered Under the Two-wheeler Insurance Policy?

Do you have a dream of going on a bike ride to Leh with your friends? Biking across a gorgeous landscape with our favorite people has its own kind of charm. To make this dream come true, you must have your bike and you should be very comfortable riding them. Also, when you have a bike, you must also get a bike insurance policy to cover any damages that your bike may encounter. Does the bike’s fibre part covered by bike insurance policy? As a matter of fact, having a comprehensive bike insurance policy is as important as having your own bike.

When you are buying a new bike, you are not just paying for the engine and other mechanical parts but also several rubber, glass, silicon, or fiber parts that depreciate faster. In the majority of the cases, these parts also do not come under bike insurance coverage. In a standard two-wheeler insurance policy, the repairing cost or replacement expenses of the depreciable parts are not covered fully.

This won’t be the case, if you have a zero depreciation add-on, as the cost of the depreciable parts is covered. Therefore, you will not be required to pay for any damage that has been caused to your bike. To get full insurance coverage for your bike repair costs, you should opt for a comprehensive bike insurance policy, and along with it; you should also get a zero-depreciation add-on cover. As you do this, all parts and fittings of your bike, whether it is made out of fiber, rubber, glass, or metal will get full coverage from the insurance provider.

Depreciation in Bike Insurance

Depreciation means the reduced value of your vehicle, which happens over the period. This is one of the reasons why the depreciated cost of the parts of a bike or any vehicle is not covered under a typical insurance policy. According to the IRDAI, a partial amount for the repair or replacement cost of such parts during a mishap is borne by the insurance company. The owner of the vehicle has to bear the rest of the amount. Some of the depreciable bike parts include tyres, tubes, vizor, nylon wires, headlight, tail light, etc. You also need to know that the deducted depreciable value of such parts differs from one another.

Also Read: 7 Tips to Keep in Mind in Case of a Two-wheeler Accident

Percentage of Deducted Depreciation of Bike Parts

There is a high chance that the deducted depreciation value of your bike parts will vary. Here is a table that shows the borne percentage.

Depreciable bike parts Depreciable cost in %
Rubber, Nylon, Plastic 50%
Tyre(s) and Tube(s) 50%
Fiber-glass 30%
Glass 0%

You must also know that the depreciation rate depends much on the age of the parts of your bike. Here is another table for your better understanding.

Age of the vehicle Depreciated percentage
Below 6 months Nil
Between 6 months and 1 year 5%
Between 1 year and 2 years 10%
Between 2 years and 3 years 15%
Between 3 years and 4 years 25%
Between 4 years and 5 years 35%
Between 5 years and 10 years 40%
Above  10 years 50%

Difference between zero depreciation insurance for the bike and a standard comprehensive policy

Differentiating points Comprehensive policy with zero depreciation cover Comprehensive policy without zero depreciation cover
Claim amount Full payment of garage bills Deduction as per the depreciation
Cost of depreciable parts Total payment Partially paid as per depreciation factor that is applicable
Premiums cost Comparatively higher Comparatively lower as compared to zero depreciation add-on cover
Savings during claims Saving on all the repair or even replacement costs of depreciable parts Have to pay a depreciable cost; however, it depends on the type of depreciable material
Claim amount Total payment of garage bills Deduction as per the depreciation

Why Should You Have a Zero Depreciation Add-on Cover?

One of the biggest reasons why you should have a zero depreciation add-on cover is because the depreciable parts are completely covered under this. You will not have to pay the percentage deductibles. Also, when you have this add-on cover, you can have peace of mind since you will be able to avail of full payment of garage bill repairs during your claim.

What is Excluded in a Zero-Depreciation Add-on Cover?

Even the best bike insurance policy comes with exclusions. Here are some of the exclusions in this add-on cover.

When Should You Purchase a Zero-Dep Add-on Cover?

A zero-depreciation add-on cover should be bought when

These points should make it easier for you to decide whether you want to go for a traditional bike insurance policy or a policy with a zero depreciation cover. You can also find many bike insurance policies online that offer zero-depreciation add-on cover and give your bike total protection against any damages.

Also Read: What is Zero Depreciation for Two Wheeler Insurance?

 

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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