Insurance For Second Hand Two Wheeler Explained

When it comes to the purchase of a second hand two-wheeler, it is considered as one of the hardest decisions to take. One needs to ensure that the vehicle is in good condition, its documents are available and it is available at a good price. A used bike or scooter gives you an edge over new two-wheelers due to their price.

Even if you have a used bike, you should be covered with insurance as it is a compulsion. Therefore, you should have an idea of how insurance coverage works for second-hand bikes to find a good insurance cover for your bike. To make it happen, we have come up with important aspects of bike insurance to help you understand this topic from the scratch.

What Is Second-Hand Bike Insurance?

Two-wheelers have become a lifeline for a common man as it is the most used transport. The reasons for its popularity are many such as easy to drive, a higher mileage, lower maintenance cost, and of course budget, and so on. These factors encourage the market of second-hand bikes as well. Many people who are short of budget for a new bike or scooter tend to go for a used two-wheeler. However, to hold an insurance cover for a second-hand insurance vehicle is also compulsory.

The used bike insurance is similar to a standard motor insurance for new two-wheelers, where the second-hand two-wheeler can also be covered with third-party, standalone own-damage, or comprehensive insurance policy. An insurance plan shields the used bikes from damage and losses incurred by third parties and the insured two-wheeler. Many people fail to get an insurance plan for their used bike or transfer bike insurance from the owner, but it is very important to hold it.

Why Insurance Is Necessary for Second Hand Two-Wheelers?

The significance of holding a second-hand bike insurance starts could be supported by various benefits that make it indispensable. Some of them are as follow:

1. Legal Obligation

As per the Indian Motor Tariff, every two-wheeler owner should carry the bike insurance while driving. It is compulsory in addition to the driving licence, registration certificate and emission certificate, which all the riders must hold. Failing to do so could make riders punished with a penalty of Rs. 2,000 and/or imprisonment of 3 months.

2. Third Party Liabilities

Third-party insurance cover will safeguard you from financial liabilities that may arise out of bodily injuries, death, or property damages incurred by a third party due to the involvement of your used bike. Therefore, a two-wheeler third party insurance plan is essential to cover you against any risks or accountability you may incur towards a third-party.

3. Own Damage Coverage

With the purchase of a comprehensive bike insurance, used bike owners can claim for damages owned by their bike. In simple terms, if any damage is sustained by the second-hand two-wheeler due to an accident or mishap, then the insured person can claim for the repair bill. The cover also protects the insured’s bike from natural calamities like earthquake, flood, etc., along with man-made calamities like riots, acts of terrorism, and so on. The comprehensive insurance plan offers coverage for the third-party liabilities as well, which makes it highly beneficial.

4. Theft of the Two-Wheeler

The expenses of damage could be bear sometimes, but theft of the vehicle is hardly bearable by anyone. If your second-hand two-wheeler gets stolen, which you bought spending a huge part of your savings or by taking a loan, it could leave you in despair and impact your finances as well. In such situations, the insurance provider will compensate you with the present market value of your two-wheeler. Such protection is an important aspect of owning a bike insurance.

Add-on Covers for Second-Hand Two-Wheeler Insurance

A two-wheeler insurance policy is similar to as it is for a new two-wheeler vehicle. Just like policy coverage, there are add-on covers for second-hand two-wheeler vehicles as well. They offer additional benefits and serve extensive policy coverage for your two-wheeler vehicle. Add-on covers for used two-wheeler insurance are quite effective and provide coverage for liabilities which are not covered under the comprehensive policy or third-party bike insurance policy. Given below are the details of the add-on covers for second-hand two-wheeler insurance:

• Zero Depreciation Cover

In a situation, where the damage incurred by the insured second-hand bike is due to an accident or a mishap, in such a case, the replacement of two-wheeler parts is borne by the two-wheeler insurance company after considering the amount of depreciation on the parts of the vehicle. With the inclusion of Zero Depreciation Cover or Nil Depreciation Cover, the insurance company will stop considering the cost of depreciation on the damaged parts of the vehicle during the claim settlement process.

• Roadside Assistance

If your second-hand two-wheeler vehicle breaks down in the middle of the way due to punctured tyre, problem in engine, or due to any other technical reason, it can make you stranded on a highway. In such a situation, you will have to call someone for assistance which involves either minor repair work or to get your two-wheeler vehicle to the nearest garage by towing it or any other means. Roadside Assistance is an add-on cover which offers assistance in case of breakdown of the insured vehicle.

• Return to Invoice Cover 

If your insured second-hand two-wheeler vehicle sustains total loss or it gets stolen, in such a case, the insurance company will be liable to pay you the amount equal to the current market value or the sum insured of the vehicle to you. However, with the Return to Invoice add-on cover, the insurance company will pay you up to the original invoice value of the two-wheeler vehicle which will also include registration charges and road tax. 

• Engine Protection Cover

Under the comprehensive second-hand two-wheeler insurance policy, the coverage for a two-wheeler vehicle’s engine may not be covered. Therefore, in case of a repair or replacement of the second-hand two-wheeler engine parts, you will have to bear the amount of repair bill as the insurance company will not be paying for the same. However, with the inclusion of Engine Protection add-on cover in the two-wheeler insurance policy, your insurance company will become liable to pay for the replacement or repair of the engine of your vehicle.

• Consumables Cover

Engine oil, nuts and bolts, screws, etc., are not covered under the standard comprehensive two-wheeler insurance policy during the settlement of the claim. However, when you purchase the Consumables add-on cover and add it to your insurance plan, then your insurance plan will start taking care of all those expenses by paying for the consumables of your insured second-hand two-wheeler vehicle.

How to Get an Insurance Policy for a Used Two-Wheeler?

You can easily purchase second-hand two-wheeler insurance online from different insurance providers. Below is the process to buy used two-wheeler insurance:

• Visit the website of Insurance Company
• Enter the bike registration number, owner details, make, model, etc., to get a bike insurance policy quote or you can submit the scanned copy of your RC, copy of invoice and identity proof through the online portal
• After the process is initiated, the insurer will send a surveyor to inspect your two-wheeler
• Be ready with the copy of bike documents like the registration certificate and ID proof
• Make payment of premium for the chosen policy quote and get the policy document via email.

Renew Second-Hand Bike Insurance Policy Online

You can renew the insurance cover of your second-hand two-wheeler online from various insurance companies. Here is the procedure to renew used two-wheeler insurance:

• Visit the website of insurance company
• Go to renewal section and log in with your policy number to get your policy details
• Click to renew bike insurance and initiate the process before your plan’s expiry date
• Pay the premium amount and get the renewed policy document through an email.

Documents Required to Purchase Second-Hand Bike Insurance

The documents to buy an insurance policy for second-hand bikes are similar to the regular bike insurance. Here is the list of those documents:

• Passport size photographs
• Original (existing) policy document of the bike
• New Registration Certificate (RC) with the new owner’s name
• Address proof documents like Adhaar, Passport, Voter’s ID, etc.

Also Read:

Everything About Bike Insurance Types, Benefits and Exclusions

Cashless Facility in Two-Wheeler Insurance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.