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Bike Insurance for Second Hand Bike
Owning a two-wheeler has its own excitement especially when you are young. There was a time when owning any vehicle was a statement of luxury. Even though there has been a rise of car owners in India , young millennials will always fancy their bikes and rides.
Other than the everyday models, the Indian market also offers fancy bikes that come with sharp features and exceptional designs. Whether it’s old or new, a good bike is a good bike. Likewise, there are many buyers who fancy old bikes for the love of vintage.
The use of the two-wheelers has by and large increased in food delivery, courier, and other similar kinds of services. Consequently, the demand for bikes are only increasing, whether it’s a second-hand one or a brand new one.
Buying a second-hand bike is not a hassle if it is in good condition. But riding a bike, if you have to reach somewhere within a stipulated time, is riskier. On top of it, the traffic and roads are pathetic which make securing yourself and your bike with a bike insurance almost inevitable.
What is a Second-hand Bike Insurance?
Just like any other two-wheeler insurance, second-hand bike insurance is one that protects one from damages and losses caused to a third-parties and oneself.
Why get a Second-hand Bike Insured?
Does the second-hand bike you bought look good to you? It might be, but we cannot be sure of the wear and tear from the previous owner. Insurance is essential for your second-hand bike, why? Let us understand, keeping the following assumptions in mind:
- Imagine the second-hand bike you bought has a loose gear. While you were riding amidst all the traffic, your gears stop working and in moving your way ahead, an accident is caused. This accident damaged the mudguard of your bike and twisted the handle. Insurance, in this case, would cover the cost of repairs for damages in your bike. Hence, insurance policy is a must for your second-hand bike in any circumstance.
- An insurance cover will save you from the legal liabilities which may arise if you happen to hit a pedestrian (third-party) while he/she was crossing the road. In the last few minutes when the traffic light signaled yellow, you tried to cross the road and at the same time, a pedestrian started to cross the road hurriedly. And in the very next second you both were in an accident. Your hit made him fall on the ground leading to a fracture in his hand. It was completely your fault and hence you will be liable to pay for the losses. An insurance policy will pay for the expenses you have to bear for the third-party bodily injury.
- To follow the traffic rules while driving is mandatory not only to save yourself but also to prevent hurting others on the road. Think of an evening when a group of boys went on their daily bike ride. One out of those sped up on the second-hand bike he purchased. Suddenly, a car came from the right side of the road and it hit him. The driver of the bike happened to fall and died. He had an insurance cover in which he opted for compulsory PA cover for the owner-driver. It will pay the nominee, of the owner of the vehicle, in case of death and disability.
To keep away the financial burden of repairs and treatment after injury, due to an accident, we need bike insurance.
Add-on Covers available with Second-hand Bike Insurance
- Accessories Cover: Some of the bike owners get their two-wheeler enhanced with the expensive electrical and non-electrical accessories. These accessories are susceptible to theft. If you lose them, you will have to bear the cost. Hence, it will be wise if you get insurance for the accessories also.
- Nil Depreciation Cover: After an accident, the replacement of some parts of the bike might be needed. The cost of the replacement and the damaged parts are to be borne by the owner. But by extra payment of premium, you can get the Nil Depreciation Cover, which means that the insurer will take care of all such expenses. Nil depreciation cover is only available for vehicles not more than 5 years old.
- Return to Invoice Cover: If your bike is stolen or sustains damage that are beyond recovery, the Return to Invoice Cover will cover the policyholder for the same amount of bike. The cost of cover will also reimburse the road tax and registration fees.
- Consumable Cover: A shield for the nitty-gritty of bikes such as engine oils, screws, nuts and bolts, etc is available in the name of the consumable cover.
Some accidents are fatal which are life taking also. Earlier under the Comprehensive Insurance Policy, only the owner was covered. Later, the policy was enhanced by adding the safety cover for the pillion rider also. IRDA has made provision for the pillion rider to be covered under the Third Party Liability Policy. In case of any accident, the pillion rider will be covered for a sum of Rs.3 lakhs. And in case, the pillion rider dies, the next of kin will be compensated for Rs.5 lakhs.
Transfer the Bike Ownership and Insurance
The ownership of the second-hand bike will be yours only when the RC of the vehicle reads your name. So, before you ride off for your first ride around town, make sure all the relevant papers are in your name.
Before you initiate the request of transfer, you need to procure the NOC from the RTO where the vehicle was registered. If the vehicle was purchased on loan then along with RTO a NOC from the banker would also be needed. To complete the transfer of ownership for your secondhand bike, you will have to follow some quick steps:
It will take about 10-15 days for the completion of the procedure and transfer of ownership. In the meantime, check whether the bike has an insurance policy or not? If yes, then decide whether you wish to execute the transfer of the insurance or would you rather buy a new insurance policy from your desired insurance service provider.
Suppose the insurance policy is in existence and you wish to transfer the same in your name. In this case, the previous owner of the bike should visit the insurance company along with the insurance policy, identity proof, copy of vehicle registration, and a photocopy of Form 20 and Form 30. The insurers may take about 15 days to execute the request for name change.
Things to check before you buy a Second-hand Bike
A wise man does not buy or choose anything without analyzing the benefits/features of the commodity or services. And when it is about the second-hand bike, you need to be dead sure about it. Here are a few things, we need to check before buying a second-hand bike:
- Physically inspect the bike: Look at the bike carefully and do some research for things you’ve observed. Keep your eyes and intuitive sense open. Find out whether there are any scratches or signs of a hit.
- Check for unusual noise: Start the bike and check whether it makes any noise at the time of idling and acceleration. Other than these, you should check the indicator, lights, and horns for sounds.
- Verify all the documents: Check on the RC whether it has the same identification number as mentioned on the engine. Any discrepancy will create trouble, if there be any claim.
- Know the service details: You should ask the owner of the bike about the frequency of the service and the center where it was done.
- Do take a test ride: Make sure you take the bike for a test drive. Choose a bumpy road on which you can best evaluate the performance of the bike. Its suspension and brakes will show their play.
So you are through with the pointers to check before you purchase your second-hand bike. You also know the procedure to transfer the ownership and transfer the insurance in your name. But what if you want a new insurance policy? Does this small issue concern you a lot? Let us know how do we get new insurance for a second-hand bike.
Want to buy new Insurance for your Second-hand Bike?
If your second-hand bike doesn’t come with a valid insurance, or you’re not too happy with the current one, you can buy a new insurance for your second-hand bike with the following process:
- Most of the insurers have online enabled procedures. Visit the website online.
- Submit the scanned copy of your RC, copy of invoice and identity proof through the online portal. Or you can simply punch in the city of registration, model name and variant, and registration date.
- The insurer will arrange for the inspection post which you can pay the premium.
- There will be absolutely no wait and you will receive a copy of your insurance.
Finally, you own your dream bike. Life is full of adventure but it is valuable. The bike you purchased, even if a used one, still came with some money. Make sure that you maintain safety standards while you are driving a bike. It will not only save you but also someone else on the road.