Here's why you need second hand bike insurance while buying used two-wheeler
Here's why you need second hand bike insurance while buying used two-wheeler
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Second hand bike insurance can be affordable to many people who would love to have their own means of transport through used two wheelers. However, this is the reason why it is necessary to acquire suitable used bike insurance that you bought from an individual seller or second hand bike dealership. To get second hand bike insurance online, it is crucial to look for online or used bike insurance to cover for your financial loss in case of theft, damage, or an accident.
What is second hand bike insurance?
1. Second hand bike insurance is a policy that a buyer of second hand bikes can take for their new bike from the insurance company.
2. Second hand bike insurance mainly offers insurance to bikes which aren’t purchased brand new but are second hand bikes.
3. Like any normal bike insurance policy, it is specifically for bikes but not the new ones that are out in the market today.
4. The insurance covers damage, theft and third party bike insurance in case of an unfortunate event such as an accident.
Why is insurance mandatory for a second hand bike?
There are several important reasons why old bike insurance is a must:
1. Protect against theft
Bikes can be easily stolen or in other words, bikes are very vulnerable to theft. Further, the National Crime Records Bureau reports that a bike is stolen every 12 minutes in the country. Theft insurance under a used bike policy helps a rider get some amount to buy a new bike if the rider’s bike gets stolen. Otherwise, you will lose the total amount added to the five per cent chance of loss, as the insurance does not cover the additional amount.
2. Cover accident costs
If your second-hand bike meets an unfortunate incident and is damaged, repair expenditure gets added up. For such things as a severely twisted frame or a non-functional engine, the price can climb up to the bike’s value. With old bike insurance, the accident is covered by repairs or any medical bills in case of an accident (for you and any third party involved).
3. Avoid financial loss
When you do not have old bike insurance, it becomes very hard for you to recover your second-hand bike if something bad happens and it is used up completely. This can be extremely devastating to many families since it builds to a huge financial loss. The bike insurance also guarantees that one will not be putting their own cash towards the expenses that the product is supposed to cater for.
4. Legally mandatory for third party bike insurance
As per the Motor Vehicles Act, third party bike insurance is mandatory for all the motor vehicles that are used on public roads. This includes compensation for any form of harm or loss that has befallen a third party which may include; pedestrians, other vehicles and so on. And even the old bicycles which are taken by people for a ride around the neighbourhood require this basic protection under the law.
5. Enhanced resale value
An insured used bike will attract a better price compared to an uninsured bike due to the reputation of bikes that are associated with insurance companies. If the buyer has a comprehensive bike insurance policy, prospective buyers can be attracted, and they can be willing to pay more for the bike.
How To Buy Used Bike Insurance?
1. Gather Bike Documents
Check bike documents if RC & ID proof is available.
2. Visit Insurer’s Website
When you plan to buy any insurance policy, it is always recommended to visit the website of the insurance company in which you are going to invest.
3. Submit Documents
Upload the scanned documents or, enter relevant details
4. Get Price Quote
Quote your bike policy to get the best deal.
5. Bike Inspection
A surveyor for insurance purposes will come and take pictures of the car.
6. Pay Premium
To access the plan, one must be willing to pay a certain amount of premium money or cash.
7. Get Policy Documents
The policy will be sent to you through the email address.
Here are a few things worth noting when it comes to the second-hand bike purchase.
1. First, make sure that you are buying from the legal owner of the bike as seen by the name on the bike registration document.
2. Second, it is pertinent to check the readiness of the bike mechanically to prevent any mechanical breakdowns. You can also take your bike to any of the authorized service centres of the manufacturer of the bike in order to get to know when the bike was last serviced.
3. Thirdly, confirm that there is no record of the bike being implicated in a road accident or any other criminal activity.
4. Fourth, check that there are no active challans associated with the bike. Contact the local traffic police since they will provide you with this information if needed. Also, if any, make sure that they are cleared before buying the bike of your choice.
5. It should confirm that any repair has been conducted by the bike manufacturer’s accredited service station, especially in cases where the bike was involved in an accident.
6. Lastly, it is important to verify that you have been handed two sets of bike keys besides the relevant documents like a bike registration card, PUC and a copy of the bike insurance policy at the time of purchase.
Features that define premium of used bike insurance
The premium you pay for second-hand bike insurance depends on these key aspects:
1. The brand, model and variant of the bike
2. Horsepower - the premium is again higher for bikes with higher CC or Cubic capacity.
3. The age of the bike is equal to the present year minus the manufacture year of the bike.
4. The geographical zone and location under which the bike is registered under
5. Bike insurance options – Third party bike insurance only or comprehensive bike insurance
6. Insured Declared Value insures an object at its current depreciated market value – the bike.
7. Supplements chose – zero depreciation, consumable cover etc.
The first part of the insurance product specification process involved in choosing the add-on covers that are relevant to the selected base product is the identification of the various add-on covers that can be included for the insurance product being developed.
The following guidelines will be of help when it comes to attaining cheaper premium rates:
1. If you are under a tight budget, it is advisable to take the third party bike insurance only which is the legal requirement.
2. Higher voluntary deductible amounts should be set on the claims.
3. Choose less add-ons and irrelevant covers
4. One of the things that should be avoided is the overlapping of insurance policy renewals.
5. It will be useful to sustain the policy of No Claim Bonus for multiple years to help you get the bonuses.
6. Burglar systems, and alarm systems: the installation of such devices may be used as a basis for possible insurance discounts.
Conclusion
With road accidents and vehicle theft cases on the increase, it is very important to have sufficient cover to cater for the loss. While buying a used bike, make sure that you do not forget to get second hand bike insurance. It protects the amount of money you put into your two-wheeler and helps to avoid spending more money in cases of misfortune.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
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