Nil Deprecation Cover for Two Wheeler Insurance

If you are a two-wheeler owner, you know that saving to buy a two-wheeler and the business/lifestyle impact from damage to the vehicle are significant. Buying any automobile is a serious expense for which you need to earmark your savings and plan your finances. The costs involved in the repair of the vehicle, in case of an accident or replacement of the vehicle (if it gets lost or stolen), are too high. This makes choosing an appropriate and comprehensive motor insurance cover an absolute necessity whether you own a car or a two-wheeler.

Recently, several insurers have introduced Nil Depreciation cover for two-wheeler insurance. This is an add-on cover that ensures you get shielded from the depreciation factor at the time of claims by choosing to go for a slightly higher premium

Let us see what the cover has in store for the policyholders.

It offers coverage on all Rubber, Nylon and Plastic parts and also on all fiber glass components. The cover is valid for select makes and models. One can opt for a Nil Depreciation Cover in case of brand new vehicles or at subsequent renewals. There is no need to panic if you forgot to take this cover for your brand new vehicle; you may opt to go in for Nil Depreciation cover at the time of renewal. The add-on cover is meant for vehicles with maximum age up to 2 years and operates for maximum of 2 claims during the policy period.

Benefits to Customers:

There are various benefits of availing the nil depreciation add on-cover.

You experience security & complete peace of mind after opting for this cover. There is no worry or apprehensions regarding the protection of your vehicle.

Your out of pocket expenses come down to a bare minimum if you sign up for nil depreciation. The need to buy online two wheeler insurance is defeated if you end up spending out of pocket for your insured vehicle. With the addition of this cover, you can heave a sigh of relief as your out of pocket expenses become almost negligible.

Goes without saying, the nil depreciation cover adds value to the Basic Cover- Most claim settlements seem meaningless to the customers as they observe deductions in actual loss amount assessed.

A major deduction happens due to Depreciation charged on parts requiring replacement after accident. By going for this Value Added Cover you can avoid this irritant

What are the conditions upon which Nil Depreciation Cover can be availed?

The word additional suggests that something extra is on offer for which you might have to pay a little more than usual. Because of which, one must carefully scan the details of coverage provided, as there are conditions imposed and are meant to be fulfilled, to avail these add-on benefits.

The Insured Vehicle has to be repaired only at company’s authorized Dealer/Repairer.

Nil depreciation cover will stay active only for maximum 2 claims during the policy term.

No indemnity shall be provided to Total Loss/ Constructive Total Loss/ Theft claims.

Exclusions to this cover are:

Parts which are not approved for replacement under motor insurance policy are not entitled to receive claim for any damages.

Tyres and tubes are not included in the coverage for nil depreciation.

In this age of inflation, it is impossible to control your expenses. While the essential expenses (a two-wheeler in particular) are unavoidable, there is a way to curb the menace that devalues (depreciates) your vehicle. That way is called a Nil Depreciation cover, you may have to pay some extra amount but the result of that extra payment saves you expenses in case of damages and buys you peace of mind.

[Source: http://www.policybazaar.com/motor-insurance/two-wheeler-insurance/expert-speak/nil-depreciation-cover-for-two-wheeler-insurance/]

Understanding Bike Insurance

It’s a sad fact that, with the increase in popularity of cycling, there’s been a recent increase in bike theft.  And while having a good lock and understanding the best way to lock your bike can reduce the chance of your bike being stolen, you may also want to get some bike insurance.

If you want to insure your bike, you have two options:

§  Household Insurance – some insurers will provide cover for a bicycle as part of your house contents insurance, but you need to check the small-print to see what’s covered. Some policies don’t cover bikes outside the home, will place limits on the value of any claim, or require a large excess.

§  Dedicated Bike Insurance – a separate policy just for your bike, which can be more expensive, but you get more comprehensive cover.

The things you need to look for in selecting your insurance are:

§  The conditions of storage at home – often policies will place restrictions on how and where the bike must be stored at home, and how it needs to be secured. You may be required to secure the bike to an immovable object inside your house. Locking a bike inside a shed or garage may be subject to strict conditions, and keeping your bike outside in your garden may not be covered at all.

§  The conditions for leaving it outside the home – some policies limit the amount of time the bike is covered when away from home (e.g. up to 12 hours), and many place a restriction on the quality of lock that must be used.  Also check if the cover outside the home differs from that at home.

§  Any cover limits – some policies limit the amount of any pay-out for bike theft to a fixed amount (say €650) or a percentage of the total contents cover (say 15%), regardless of the value of the bike insurance.  The insurer may also cover what the bike is worth at the time of theft, rather than the replacement cost, and so look out for “New for Old” cover.

§  Any excesses – some policies charge a large excess (say €150, or 10% of the bike’s value) which is deducted from the value of any claim.  Any claim may also lead to higher premiums when renewing insurance – something to bear in mind especially when covered under house contents insurance.

§  Any exclusions – some policies don’t cover damage to bike caused by vandals, and policies often do not cover the bike if used for sporting events, or if taken out of the country.

Basically, when selecting insurance, you need to follow these steps, and then check which policies out there match your needs:

1.     Work out the value of cover you need for your bike and any fixed accessories (replacement saddles, pedals, racks, and so on). Check if the purchase price for your bike has gone up since you bought it, and adjust your cover accordingly.

2.     Decide what level of excess you are willing to live, and if any particular policy limitations are deal-breakers.

3.     Decide if you need accidental damage cover, for if your bike is damaged in an accident.

4.     Decide if you need personal accident cover, to cover medical and other costs if you are injured in an accident.

5.     Decide if you need public liability cover, in case you injure someone else or damage their property.

Generally, a dedicated cycling insurance policy will offer the most comprehensive cover for regular cyclists, and if the worst happens and your bike is stolen, at least any claim won’t affect your house insurance.

I have my cover through Cycle Sure, who have comprehensive new-for-old cover, and a low excess (€25) for claims. The value of replacing my bike plus fixed accessories is around €1,000, and the premium is just over €100 – which seems about equivalent to all the other specialist bike policies.

Other specialist bike insurance providers include chill.ie and One Direct.

[Source: https://bikeinsuranceblog.wordpress.com/2015/12/19/understanding-bike-insurance/]