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Buy/Renew Bike Insurance Policy for Old Two-Wheelers
No matter how much we grow we always carry some traces from the past and some valuable items do not ever leave their place. You will always have a similar feeling for the first bike you purchased. Due to your age or change of lifestyle, you might not drive your old bike, but you would never want to sell it for pennies.
Though old, you can still get bike insurance because someday you would want to use it. So, let’s look at everything you need to know about insurance for old bike.
What is Old Bike Insurance?
Let's be real and know that an old two-wheeler cannot be safe to ride unless it is taken for due services. When your bike is more than 10 years old, you can consider it really old.
So, old bike insurance means the insurance plan you buy to insure your old two-wheeler, whose value has depreciated over the years. For example, buying two-wheeler insurance that you have owned for more than 10 years would be considered old two-wheeler insurance. You may choose between different insurance plans, such as Comprehensive bike insurance or Third-Party bike insurance.
Why is It Important to Insure an Old Bike?
Having an active bike insurance for your old bike becomes even more important! Here's why:
Bike insurance is mandatory in India whether you have an old bike or a new one! Driving without one can lead to fines and penalties.
Protection against fire damage or uncontrollable events, along with coverage for bike theft or total loss beyond repair.
Cover legal liabilities arising from injury to a third-party person or damage to their property due to an accident involving your bike.
Things to Remember While Buying Old Bike Insurance
You need to take care of a few things before buying insurance for your old bike. Here’s your checklist:
Even an old bike can be valuable depending on how much you use it. Its value drops each year, so compare its current IDV (Insured Declared Value) with its utility to choose the right insurance. Comprehensive Insurance offers broader protection, while Third-Party Liability is mandatory.
India has over 25 general insurance companies, each offering motor policies with varying coverage and conditions. It’s important to assess your needs and find the insurer that best meets them. Once you've chosen, read the policy terms carefully; details like deductibles or exclusions can impact your claim later.
Motor insurance policies can either be purchased online or offline through agents of the insurance companies. Read the wording to understand the terms and conditions mentioned. You should first compare the products. It will be a wise thing to do before buying an insurance policy.
The owner of any two-wheeler can have options to get some add-on covers also. But add-on covers can be added to the vehicle up to 15 years old. You can choose add-ons like Passenger Cover, Zero Dep Cover, Medical Cover, and accessories cover. You will have to pay an extra premium to avail these covers.
In India, you get motor insurance policies for one year. With each year, the IDV of the vehicle is reduced by some percentage. When your vehicle is old, you have lesser IDV and lower premium. It simply implies the value of the bike which will be considered for that particular year.
Before buying the policy for your old bike, decide or know what is the depreciation applicable to the value. In case of any mishap, the reimbursement will be based on the depreciation applicable to the vehicle. As the age of the bike increases which means it gets old, the percentage of the depreciation increases.
Applicable Two-Wheeler Depreciation Rates Based on the Age
You should try and avoid small claims the amount of which you can afford. It will help you to get insurance of your old bike on a lower premium for which the Insured Declared Value is already low.
Why Choose Old Two-Wheeler Insurance by Digit?
Key Features of Old Two-Wheeler Insurance by Digit
What’s Covered in Old Bike Insurance by Digit?
What’s Not Covered in Old Two-Wheeler Insurance by Digit?
It is equally important to know what’s not covered in your old two-wheeler insurance policy, so that there are no surprises when you make a claim. Here are some such situations:
In the case of a Third-Party or Liability Only Bike Policy, damages to own vehicle won’t be covered.
Your bike insurance won’t cover for you in situations where you were riding drunk or without a valid two-wheeler licence.
Some situations are covered in add-ons. If you haven’t bought those add-ons, the corresponding situations will not be covered.
Any contributory negligence(e.g. damage due to driving a two-wheeler in a flood, which is not recommended as per the manufacturer’s driving manual, will not be covered)
Any damage which is not a direct result of the accident (e.g. after an accident, if the damaged two-wheeler is being used incorrectly and the engine gets damaged, it is considered as consequential damage and it will not be covered)
If you hold a learner’s licence and were riding your two-wheeler without a valid licence-holder on the pillion seat- then your claim in those situations won’t be covered.
How is Premium Calculated for an Old Bike Insurance?
The premium of any vehicle is calculated based on its IDV, past claim experience, accessories fitted, if any and other factors. For an old bike, the premium for the insurance is based on factors like:
- Engine Capacity of the Bike
- Age of Your Bike
- IDV of the Bike
- No Claim Bonus of Your Bike
You can also use Bike Insurance Calculator to calculate the premium of third-party or comprehensive bike insurance with add-ons.
FAQs about Old Bike Insurance
Can a bike be insured after 15 years?
Yes, you can get old two-wheeler insurance for a bike older than 15 years; in fact it is mandatory to have a valid bike insurance policy in India.
Is insurance mandatory for old two-wheelers?
Yes, all two-wheelers, whether old or new, should be insured with at least a Third-party Liability Plan since it is mandatory by law and failure to do so will result in a penalty.
What documents are required to buy insurance for old bike?
- Bike Registration Certificate
- Previous year two-wheeler insurance policy, if applicable
- Any of these documents for KYC verification - PAN/Aadhar/DL/Voter id/Form 16/Passport
Should I get old bike insurance for a bike older than 5 years?
Yes, it is mandatory to insure your bike at least with the Third-party Bike Insurance Plan in India, no matter the age of the vehicle, else you will be penalised.
Can I get bike insurance after 15 years?
Yes, you can insure your old bike with third-party liability insurance or comprehensive insurance.
How to do old bike insurance renewal online?
To do old bike insurance renewal online with Digit, go to its website or app and click on the ‘My Policy’ section. Select the two-wheeler insurance policy pending for renewal. Now select the IDV, add-ons and confirm the details, then click on ‘Pay Now.’
What will happen if I don't do my old bike insurance renewal on time?
If you don’t do old bike insurance renewal on time your policy will expire, and you will no longer be protected financially in unfortunate situations. Moreover, driving with an expired insurance policy is also illegal in India.
Which is the most suitable two-wheeler insurance for old bike?
A Comprehensive Bike Insurance Policy is best if you want enhanced coverage as it covers you for both Third-party Liabilities and Own Damage components. However, if you do not ride your bike much or have budget constraints, you can go for a third-party policy.
Which bikes are cheaper to insure – old or new?
Old bike insurance is cheaper as compared to new bikes. This is because for older bikes since the market value has decreased over time, their Insured Declared Value (IDV) is also lower than new bikes. Thus, the premium of old bike insurance policies is also low.