Bike Insurance Add-ons: Zero Depreciation Cover V/s Return to Invoice Cover

Zero Depreciation vs. Return to Invoice Cover in Bike Insurance

An add-on cover aims to enhance the coverage and protection with your basic bike insurance policy. The following table highlights the key differences between the zero dep and RTI add-ons

What is Zero Depreciation Cover in Bike Insurance?

Insurers offer accidental claims after deducting the depreciation cost. However, with a zero depreciation add-on cover, also called nil depreciation cover or bumper to bumper cover, the insurer will cover the full cost of repairing/replacing the damaged parts without deducting the depreciation and offering a better reimbursement.

If you have a zero dep add-on, the costs of all parts such as glass, fibre glass, etc, will be covered at 100% cost whereas tyre, tube and battery issues will be covered at a 50% cost. A bumper to bumper coverage is only provided when your bike is met with an accident. The add-on does not cover any loss occurring due to regular wear and tear of your bike.

Here are some key takeaways about the Zero dep add-on cover:

• Most insurers only offer the zero dep add-on for bikes under 5 years old.
• Before your claim is settled, deductibles (both mandatory and voluntary) will be deducted.
• You have to pay an additional premium to buy the bumper to bumper add-on coverage.

What is the RTI Cover in Bike Insurance?

A comprehensive bike insurance policy covers a wide array of problems such as accidents, thefts, etc. In an unforeseen circumstance, if your bike is stolen or damaged beyond repairs (more than 75%), your insurer will pay you the declared IDV. The IDV is the approximate market value of the bike after deducting the depreciation.

However, if you have a 'Return to Invoice cover', your insurer will be liable to pay you the invoice amount i.e the ex-showroom price + registration charges + road tax. Hence, you will get the maximum reimbursed amount and not the IDV, in case of total loss or theft of the insured bike.

Here are the key pointers about the Return to Invoice cover:

• It is applicable when the repair cost (as per policy terms) is more than 75% of the IDV.
• This add-on cover kicks in when your bike is stolen or is declared a total loss.
• It is a lifesaver for those living in high-accident zones or areas with a vulnerability for bike theft.
• Since it is an add-on, you will need to pay an extra premium for the RTI cover.