A two-wheeler is a nifty way to get around town despite the traffic snarls. It helps provide flexibility in your commute and while ensuring it is convenient and comfortable at the same time. While two-wheelers are affordable in comparison to cars, they can at times be heavy on your wallet. This is when you can opt for a second-hand two-wheeler.
Other than being more affordable, a second-hand two-wheeler is easy to maintain. But when buying one, you must comply with necessary formalities like transferring the vehicle to your name and also transferring its insurance cover. *
This article explains the different facets of bike insurance when buying a pre-owned two-wheeler.
Is there a separate insurance plan for second-hand two-wheelers?
To answer the above question, there is no separate two-wheeler insurance for pre-owned bikes. The process of buying an insurance cover for used vehicles is the same as buying a new insurance cover. Similar to a standard policy for new vehicles, the pre-owned bike insurance policy defines the terms in its policy document clearly chalking out the policy coverage. *
Why is it important to buy an insurance plan for pre-owned vehicles?
The Motor Vehicles Act of 1988 is what makes it mandatory for all vehicles registered in the country to have an insurance cover, be it a new vehicle or a pre-owned one. Not complying attracts healthy penalties and even imprisonment in case of repeated offences. This Act requires a minimum of a thirdparty bike insurance, but you can choose to upgrade your policy to a comprehensive plan that offers a broader protection. *
Some important pointers to know when buying a two-wheeler plan for your used bike
- Transferring your insurance plan
The registration of sale agreement of your bike followed by its re-registration is not the only steps you need to take when you purchase a used bike. You also need to transfer the insurance cover to complete the buying process. Many first time buyers often overlook this step and attract penalties. The responsibility of transferring the policy rests equally between the buyer and the seller. Further, only the third-party coverage gets transferred to the buyer automatically from the previous owner. Cover for own-damages must be purchased separately or requires an application to the insurance company. *
- No transfer of NCB benefits
The no-claim bonus or NCB is a concession that is offered by the insurance company at the time of two wheeler insurance renewal. This amount of NCB is calculated as a percentage of its own-damage premium. While the third-party coverage is transferable to the new buyer, any accumulated NCB isn’t. It is attached to the policyholder and not the vehicle. Thus, no NCB benefits can be transferred by the seller to its buyer. * You can visit the official website of IRDAI for further details.
- Selection of right plan
Depending on your assessment of the risk, you can choose to buy a third-party bike insurance or a comprehensive policy. Ensuring you select the right policy helps to provide the required coverage for your bike. A suitable insurance plan will help you stay on top of the risk that otherwise can drain your savings. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.