Getting insurance coverage for your bike protects you from monetary losses brought on by third-party claims or damage to the vehicle itself. To ensure you are adequately covered against unanticipated liabilities, you should search for comprehensive coverage when purchasing a bike insurance plan. The Comprehensive Bike Insurance policy does not cover the cost of ownership or bike depreciation. Still, it does offer financial assistance in the event of third-party liability and bike damage.
Zero Depreciation and Return to Invoice are two bike insurance add-ons that are intended to lower your out-of-pocket costs and raise the amount of money you get paid when you file a claim. How different are they, though? Continue reading to discover the distinction between both add-ons that are Return to Invoice and Zero Depreciation.
What is a Zero Depreciation Cover in bike insurance?
The “Nil depreciation policy,” often known as zero depreciation, is an add-on that enables the policyholder to recover all costs paid during the repair of a damaged bike. The insurance provider promises not to subtract wear and tear expenses, or the bike’s depreciation charges, from the amount of the final claim payout.
With a Zero Depreciation Add-on, however, this depreciation of your two-wheeler won’t be subtracted because it isn’t factored in when resolving the insurance claim for the vehicle.
Benefits of Zero Depreciation Cover in Bike Insurance
The following are the advantages of having zero-depreciation two-wheeler insurance coverage:
- Greater Amount of the Claim
The insurance provider considers the depreciation rate for various elements of your two-wheeler before granting the claim amount for repairs. Bicycle parts depreciate at varying rates, and the age of your two-wheeler has an impact on your claim rates as well.
- Enhances The Coverage
Improving the fundamental coverage of your two-wheeler insurance policy with a zero-depreciation add-on cover practically eliminates your costs. A small additional investment for the add-on protection will increase your savings and provide a higher claim amount.
- Repair Cost Without Depreciated Value
The costs associated with repairing the insured sections of the two-wheeler are calculated without depreciation value.
- Save More Money
Although the price for this bike insurance add-on coverage is slightly higher, in the event of an accident or mishap, your bike will not be subject to depreciation, and the claim amount will be computed without depreciation, thereby increasing your payout. In the long term, you can save more money because the compensation you receive with this add-on is typically much more than the premium.
- Higher Compensation
The maximum claim amount that you can obtain for your bike is calculated by the insurance policy’s IDV. The rate of depreciation applied to the bike’s components directly affects the compensation amount. Consequently, you may file claims with the zero-depreciation bike insurance add-on cover without having your claim amount impacted by the bike’s depreciation rate, which eventually helps you receive a larger payout.
- Peace of Mind
Bike insurance offers you peace of mind by providing an additional layer of security for both you and your bike against theft, damage, accidents, and other mishaps. A zero-depreciation add-on cover eliminates the rate of depreciation that applies to various bike parts, increasing your compensation even more. Therefore, riding a bike and knowing that you will receive full compensation in the event of an accident would undoubtedly provide peace of mind.
What is Return to Invoice (RTI) Cover in Two-Wheeler Insurance?
The difference between your vehicle’s actual worth and its IDV is covered by an add-on called return to invoice (RTI). If your bike is stolen or completely lost, RTI assists in recovering the purchase price. The difference between the invoice and IDV can be covered if you choose a Return To Invoice (RTI) bike insurance add-on. As an alternative to receiving the IDV as the claim amount, Return To Invoice cover, commonly referred to as Invoice Protection cover, enables you to obtain the invoice price. In the event of complete loss or theft, you can get compensation equal to the on-road price of your bike when you combine this add-on with a comprehensive or stand-alone own-damage bike insurance plan.
Benefits of Return to Invoice Cover in Bike Insurance
The following are some advantages of two-wheeler insurance’s Return to Invoice coverage:
- Return to Invoice coverage improves the coverage of your two-wheeler insurance policy by providing greater security for your bike against theft and total loss or damage to your two-wheeler.
- It protects you from financial losses if the two-wheeler you have insurance on is stolen. This is because, as a benefit of having RTI coverage, the insurance provider would pay for your bike based just on the invoice value, which does not account for depreciation.
- If the damage to your covered bike is too great for repair, Return to Invoice coverage may enable you to obtain a like or identical model at the insured vehicle’s final invoice value.
- Return to Invoice coverage is advantageous, particularly for recently purchased bikes, as it provides the owner with much-needed peace of mind that may be disturbed in the unlikely event that their bike is stolen or suffers irreparable damage.
Who Should You Choose the Zero Depreciation Add-on?
The Zero Depreciation Cover is the best option for people who are brand-new bike owners and novice riders. Additionally, as the parts and components of luxury two-wheelers are costly to fix or repair, an NIL Depreciation Cover is required if you own one. A Zero Depreciation Cover can be beneficial for any bike rider, especially as India has the largest number of road-related incidents reported.
When and Who Can Opt for the Return to Invoice (RTI) Add-On?
The RTI cover should ideally be chosen by all owners. Nevertheless, it is essential for the following individuals:
- Residents of places where theft is a regular occurrence
- Individuals without secure parking spots
- Those who frequently travel great distances by two-wheeler are more susceptible to traffic accidents.
- Residents of areas prone to accidents
Frequently Asked Questions
No, theft and damage too great for the bike to be restored are the main reasons RTI applies. It cannot be used for minor damages.
No, this add-on is often limited to new motorcycles up to the age of three by the majority of insurance companies. You should verify with your insurance provider about any minimum waiting period that may apply to your policy before purchasing the add-on in addition to the bike.
No, if you purchase them for the appropriate need, both add-ons are equally advantageous.
Yes, the RTI will pay for the bike’s road tax and registration.
No, this add-on only covers the cost of your bike’s purchase invoice; it does not cover the cost of any extra equipment.