Auto InsuranceFinancial Plan

Know More About Zero Depreciation, NCB And Other Add-ons For Your Two- wheeler Insurance

If you own a two-wheeler in India, it is mandatory to have a two-wheeler insurance. You cannot drive on the road without a third party two-wheeler insurance.

Not many are aware of the terminologies that are used by the insurance company. If you know what they mean and how it can benefit you, it will be easier to make a choice of the policy for your two- wheeler.

Important terms related to two-wheeler insurance

  • Zero Depreciation

An important term about two-wheeler insurance, zero depreciation will protect you from the reduction in the value of the bike insurance when you make a claim. All vehicles spare-parts go through depreciation, which reduces the value of the two-wheeler over a period of time.

With a zero depreciation cover, you will be able to protect yourself from depreciation when you make a claim. It is an add-on, which you purchase by paying an additional premium amount. When you make a claim, the insurance company will not take into account the reduction in the value of the two-wheeler due to depreciation.

Also Read: Things to keep in mind while filing third party insurance

Thus, you will be able to claim a higher amount and the depreciating value of the two-wheeler will not be included in the same.

  • No Claim Bonus (NCB)

NCB is another important term, which is a part of the fundamental concept of a motor insurance policy. This is a discount you avail of when you do not make a claim for a particular period of time.

When you refrain from making any claims during the period of the policy, you will be able to avail of an NCB in the second year of the two wheeler insurance renewal. You can avail of a specific amount in a year of the policy coverage.

Crucial add-ons for two-wheeler insurance 

You should never buy the cheapest two wheeler insurance that you come across. It is advisable to compare different insurance providers and the plans offered by them before you make a decision. Add- on covers are ideal for a comprehensive protection.

Add-ons will give you an additional cover at an additional amount of premium. Apart from the zero depreciation cover mentioned above, there are many other add-ons you can choose for your plan.

  • Accessories Cover

If you have two-wheelers studded with high-end accessories, you definitely need to buy this add on cover. It will provide for any damage or loss of the accessories. You will be required to provide an estimate of the cost of the accessories at the time of buying the policy.

  • Medical Cover

This is one of the most important covers. Medical assistance is crucial at the time of an accident and many times medical expenses can cost a huge amount to you. This cover will fund different medical treatments related to the accident.

Also Read: The Rise of Superbikes Industry in India

  • Passenger cover

In most policies, the rider will be covered against disability or death but the passenger is not covered. With a passenger cover, the pillion will also receive a compensation in case of an accident or disability. It is an extremely beneficial cover for the policy.

You can choose an add-on at the time of two-wheeler insurance renewal. There is no denying the fact that a two-wheeler insurance is an important investment you need to make right away. In order to choose the best plan, use the two wheeler insurance calculator available online. The calculator will provide you with an estimate of the amount of premium payable on the policy.

Choose a plan that best fits your needs and requirements.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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