Saturday, 26 December 2015

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/]



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