{"id":540,"date":"2023-11-22T12:27:19","date_gmt":"2023-11-22T12:27:19","guid":{"rendered":"https:\/\/www.journalwin.com\/?p=540"},"modified":"2023-11-22T12:27:21","modified_gmt":"2023-11-22T12:27:21","slug":"how-does-depreciation-impact-your-two-wheeler-insurance-policy","status":"publish","type":"post","link":"https:\/\/www.journalwin.com\/how-does-depreciation-impact-your-two-wheeler-insurance-policy\/","title":{"rendered":"How Does Depreciation Impact Your Two-Wheeler Insurance Policy?"},"content":{"rendered":"\n

Depreciation is used in the insurance industry to describe the rate at which your insurer calculates the value reduction of an insured vehicle due to wear and tear, ageing, etc. Your bike’s Insured Declared Value (IDV), which varies for each model, determines the depreciation rate. Additionally, the depreciation rate of a vehicle increases with age. Now, check all aspects of your bike insurance by checking your bike insurance app<\/strong><\/a>.<\/p>\n\n\n\n

How Will The Insured Declared Value (IDV) Be Determined?<\/strong><\/p>\n\n\n\n

IDV is calculated using the vehicle’s current market value, not the price you paid to buy it. IDV value changes over time. It would help if you insured it as soon as you purchase your two-wheeler to receive the maximum IDV. As a result, the IDV and bike insurance<\/strong> premiums will be lower the older the vehicle. The formula below is used to calculate IDV:<\/p>\n\n\n\n

Insured Declared Value (IDV) is equal to (Current Market Value of the Bike – Depreciation Cost of the Bike) plus (Cost of Accessories – Depreciation Cost of the Accessories). ##<\/p>\n\n\n\n

What Impact Does Depreciation Have On The Cost Of Insurance Premiums?<\/strong><\/p>\n\n\n\n

The rate of depreciation decreases as the age of your two-wheeler increases. The total amount your insurer will pay you for the harm done to your car in an accident is the Insured Declared Value (IDV). Instead of the vehicle’s purchase price, it is based on its market value. <\/p>\n\n\n\n

Rate Of Your Bike’s Depreciation<\/strong><\/p>\n\n\n\n

A third-party bike insurance<\/strong> plan covers all financial and legal obligations for the third party during a road accident. It is the minimum requirement for bike owners in India. Therefore, having this plan becomes crucial for all bike owners. However, your premium for this plan depends on the depreciation rate. #<\/p>\n\n\n\n

Rate Of Depreciation According To The Age Of The Bike<\/strong><\/p>\n\n\n\n

Age of the Bike<\/strong><\/td>Rate of Depreciation in %<\/strong><\/td><\/tr>
Less than 6 months old<\/td>0%<\/td><\/tr>
Between 6 months \u2013 1 year<\/td>5%<\/td><\/tr>
Between 1 \u2013 2 years<\/td>10%<\/td><\/tr>
Between 2 \u2013 3 years<\/td>15%<\/td><\/tr>
Between 3 \u2013 4 years<\/td>25%<\/td><\/tr>
Between 4 \u2013 5 years<\/td>35%<\/td><\/tr>
Between 5 \u2013 10 years<\/td>40%<\/td><\/tr>
More than 10 years old<\/td>50%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Rate Of Depreciation According To The Bike Parts<\/strong><\/p>\n\n\n\n

Bike Parts<\/strong><\/td>Rate of Depreciation in %<\/strong><\/td><\/tr>
Rubber\/plastic\/nylon parts of the bike<\/td>50%<\/td><\/tr>
Batteries, tyres and tubes of the bike<\/td>50%<\/td><\/tr>
Fibreglass parts<\/td>30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What Does Bikes’ Zero-Depreciation Cover Mean?<\/strong><\/p>\n\n\n\n

Bikes with zero depreciation add-on coverage can reduce depreciation-related costs. As the name implies, this add-on cover can be purchased by paying an additional premium. Additionally, your insurer will pay for the losses or damages with a zero-depreciation add-on. Make sure you carry out the online bike insurance renewal <\/strong>process on time. An app for bike insurance<\/strong><\/a> can help you keep track of this. *<\/p>\n\n\n\n

Get insured anytime, anywhere! Check out the Bajaj Allianz General Insurance website<\/strong><\/a> to learn more and download the app now.<\/p>\n\n\n\n

* Standard T&C Apply<\/p>\n\n\n\n

# Visit the official website of IRDAI for further details.<\/p>\n\n\n\n

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply<\/p>\n\n\n\n

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure\/policy wording carefully before concluding a sale.<\/p>\n","protected":false},"excerpt":{"rendered":"

Depreciation is used in the insurance industry to describe the rate at which your insurer calculates the value reduction of an insured vehicle due to wear and tear, ageing, etc. Your bike’s Insured Declared Value (IDV), which varies for each model, determines the depreciation rate. Additionally, the depreciation rate of a vehicle increases with age. […]<\/p>\n","protected":false},"author":42,"featured_media":541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/posts\/540"}],"collection":[{"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/comments?post=540"}],"version-history":[{"count":1,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/posts\/540\/revisions"}],"predecessor-version":[{"id":542,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/posts\/540\/revisions\/542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/media\/541"}],"wp:attachment":[{"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/media?parent=540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/categories?post=540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.journalwin.com\/wp-json\/wp\/v2\/tags?post=540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}