How to Get Two-Wheeler Insurance for a Second-Hand Bike?

Posted on: Aug 28, 2024 | 3 mins | Written by: HDFC ERGO Team

How to Get Two-Wheeler Insurance for a Second-Hand Bike?

When buying a new motorcycle, you generally can select from insurance plans provided by the dealer or by an independent provider. Purchasing insurance for a used bike is just the same. However, it could prove to be somewhat complex since you will have to consider many factors regarding your bike, like its condition and ownership.

This guide will help you select the correct second-hand bike insurance for your pre-owned bike.

Do Second-Hand Bikes Have Their Own Insurance Plans?

No, used bikes do not have special insurance plans. The options available for used bikes are the same as for brand-new bikes. The policy terms specify the coverage details for new and used vehicles, outlining the protection scope.

Types of Insurance Plans for Used Bikes

Different types of insurance policies exist, and it's important to comprehend the coverage of each. Listed below are the options for pre-owned bikes:

third party bike insurance :

This is the basic and mandatory insurance. It includes coverage for injury to others and damage to their properties due to an accident with the insured bike. It excludes coverage for harm to your own bike.

Comprehensive bike insurance:

It offers wider protection, such as covering third-party liability and damage to your own bike from natural or man-made disasters. It also compensates for vehicle theft.

Standalone Own-Damage Insurance:

Provides coverage exclusively for your bike's damages, ideal for those with an existing third-party liability policy.

Add-Ons for Used Bike Insurance

Enhance your comprehensive insurance cover with these add-ons:

• Zero Depreciation Cover:

This guarantees that your claim amount will not be reduced by depreciation.

• Engine and Gearbox Protection Cover:

Includes coverage for repair or replacement of engine and gearbox components.

• Roadside Assistance Cover:

Provide coverage for services such as towing, jumpstarting the battery, and changing a flat tyre.

• NCB Protection:

Preserves your No Claim Bonus even after making a claim.

• Return to Invoice Cover:

Covers the full ex-showroom price in case of total loss or theft.

• Consumable Cover:

Covers costs for consumables like nuts and bolts.

• Personal Accident Cover for Passengers:

Extends cover to pillion riders.

• Key Replacement Cover:

Covers the cost of replacing lost or stolen keys.

Importance of Second-Hand Bike Insurance

Ensuring coverage for a pre-owned bike is mandatory by law and also protects the rider from potential risks. Here is why it is crucial:

Requirement by Law:

It is a legal mandate for vehicles in India, including used bikes, to have insurance. It is to ensure protection during any unfortunate mishaps.

Third-Party Liability:

Third-party and comprehensive insurance assist in paying for expenses associated with the compensation for injuries inflicted on other parties or damages to their properties.

Protection Against Theft:

In case of theft, the insurance will compensate for the current market value of your used bike, minimising monetary loss.

Own Damage Coverage:

An all-encompassing own damage policy or a stand-alone covers expenses for repairs caused by accidents, theft, or other damages.

Scenarios When Buying a Second-Hand Bike Insurance

Here are the options for getting insurance for your pre-owned bike just after the purchase:

Scenario 1: Purchasing a New Insurance Policy

• Visit an insurance comparison website and enter your bike’s registration number.

• Get quotes by filling in details about your bike and personal information.

• Select the best plan based on your coverage needs and budget.

• Pay the premium online to receive your policy.

Scenario 2: Transferring an Existing Insurance Policy

• Obtain the existing insurance policy details from the previous owner.

• Ensure the policy is transferred to your name within 14 days.

• Renew the policy if it’s about to expire.

Documents Required for Used Bike Insurance

When buying insurance for a used bike, you will need the following documents:

• Registration Certificate (RC)

• Previous Insurance Policy (if applicable)

• No Claim Bonus (NCB) Certificate (if applicable)

• Valid Bike Fitness Certificate

• Pollution Under Control (PUC) Certificate

• Identity and Address Proof

• Passport Size Photographs

• Sale Deed/Form 29 & 30 (if recently purchased)

• Inspection Report (if required)

Renewing Used Bike Insurance

Here is the method to renew your bike insurance:

• Review Current Policy: Assess if the existing coverage meets your needs.

• Choose Renewal Method: Online or offline through an insurer's office or agent.

• Transfer NCB: Ensure NCB is transferred if changing insurers.

• Submit Documents: Have your existing policy and other documents ready.

• Payment: Pay the premium online or offline.

• Receive Policy Document: Verify details and ensure coverage is continuous.

Depreciation Rate for Old Bikes

Depreciation affects the IDV of older bikes. Here’s a general guide:

• Less than 6 months: 5%

• 6 months - 1 year: 15%

• 1 year - 2 years: 20%

• 2 years - 3 years: 30%

• 3 years - 4 years: 40%

• 4 years - 5 years: 50%

• More than 5 years: Determined by the insurer

Using a Bike Insurance Premium Calculator

• Visit a Website: Access the calculator on an insurance or comparison site.

• Enter Bike Details: Provide your bike’s model, purchase year, and registration status.

• Input Previous Policy Information: Include claims and NCB details.

• Select Coverage: Choose between comprehensive or third-party insurance and any add-ons.

• Get Estimate: Use the calculator to estimate the premium and compare policies.

Tips for Purchasing the Right Motor Insurance Plan

Here are some tips for buying the right insurance for your second-hand bike.

1. Comparing Insurance Plans

Once you have collected data on various policies, the next step is to analyse them. Use a two-wheeler insurance premium calculator to compare different plans based on cost, benefits, protection levels, and additional options This no-cost tool assists you in identifying the most suitable policy for your requirements.

2. Verifying Insurance Terms

Before deciding on a policy, make sure to examine the insurance terms thoroughly. The policy papers will provide information on the coverage period, exclusions and inclusions. Knowing these terms ensures that you have a complete understanding of your insurance policy and can help prevent unexpected hurdles during claims.

3. Setting the Right IDV

The maximum amount an insurer will pay in case of total loss or damage beyond repair is known as the Insured Declared Value (IDV). It is calculated according to the age and loss of value of the bike. Make sure to set the IDV correctly for your used bike to estimate its true value.

4. Applying for Two-Wheeler Insurance

After selecting a policy, submit your application online for ease and convenience. Within two weeks of buying the used bike, you must transfer the two wheeler insurance online policy to your name.

Conclusion

In summary, insuring your second-hand bike is essential for legal compliance and financial protection. By understanding the various types of policies, add-ons, and steps involved in purchasing or renewing two-wheeler insurance, you can ensure that your pre-owned bike is adequately covered.

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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