Are fibre parts covered under two wheeler insurance 26th December 2022
Preferred amongst different economic strata, scooters and bikes help manoeuvre through tight-packed traffic and poorly maintained roads with precision. However, the lack of an effective safety system makes them a risky option, so buying the best two wheeler insurance in India is necessary to protect your two-wheeler against damages and allied losses.
While damages from accidents and maintenance costs of the 2-wheeler are covered by insurance, does the same apply to its additional fittings of glass, fibre, silicon, etc.? Read on to find out if such depreciable parts are covered by your two wheeler insurance policy.
What are depreciable parts?
With consistent use, the value of any vehicle is bound to depreciate. In two-wheelers, the primary function is served by the engine and mechanical parts. However, there are smaller parts made using relatively weaker materials, like silicon, rubber, etc., that inevitably depreciate sooner
Are depreciable parts covered under comprehensive insurance?
A third-party insurance policy is often lacking to provide coverage for depreciable parts. You may have to purchase an add-on cover for several of its excluded items, and depreciable fibre parts are one of the many partial exclusions. Generally, two wheeler insurance only partially covers the repair and replacement costs of the depreciable parts alone. Instead, they cover a marginal percentage of the expense, leaving you to shoulder the burden of the rest of the amount.
The general depreciation cost percentage.
Most two wheeler insurance applies the following depreciated cost percentages on fittings based on their material:
● Fibre: 30%
● Glass: 0%
● Nylon, Plastic, Rubber: 50%
● Battery, Tube, and Tyres: 50%
This implies that the insurer assumes the above-stated depreciation rates to affect the part and only pays the depreciated cost percentage of the repair or maintenance cost. The remaining amount is borne by the insured, which is often a significant portion of the expense.
Additionally, the vehicle’s age also determines the following approximate rate of depreciation:
● Up to 6 months: 0%
● Up to 1 year: 5%
● Up to 2 years: 10%
● Up to 3 years: 15%
● Up to 4 years: 25%
● Up to 5 years: 35%
● Up to 10 years: 40%
● Above ten years: 50%
However, an alternative is available to ensure that your insurance provider bears the expense.
Zero Depreciation Add-on Cover.
In case you have a standalone own-damage insurance or comprehensive insurance, you are eligible to purchase an add-on zero depreciation cover for your two-wheeler. By purchasing this add-on, you can claim the entire cost of repairing or replacing depreciable parts from your insurer.
Check the inclusions of policies when comparing alternatives to find the best two wheeler insurance in India that covers fibre, glass, rubber parts, etc.
Exclusions under zero depreciation add-on. Even after purchasing the add-on to the best two wheeler insurance in India, there remain some exclusions that you will have to bear, including:
● Vehicles older than five years
● Costs of over two claims during the policy period
● Machine-driven breakdown damages
● Damages due to uninsured risks
● Depreciation due to general wear and tear
When to buy zero depreciation add-on. While it is a beneficial facility, consider purchasing a zero depreciation cover if:
● You own a limited edition or premium 2-wheeler
● You live in an accident-prone area with heavy traffic
● Your vehicle is not older than five years
● The cost of individual repairs of depreciable parts is estimated to be greater than the cost of the add-on
Depreciation is an inevitable loss of asset value. Although most insurance covers do not provide for expenses relating to depreciable parts, an add-on zero depreciation cover can convert your preferred insurance into the best two wheeler insurance in India.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.