What We Need to Know about Insurance Before Buying an Old Bike
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When done properly, buying a pre-owned bike can turn out to be a smart decision. By done properly, we mean if you have done your bit of research and have a trusted mechanic test and verify the bike.
Two-wheelers are one of the most efficient ways of moving around in the country. And given the soaring petrol prices, they make even more sense.
A pre-owned bike is not only more affordable but is lighter to maintain as well. Since the bike would usually be a bit old, you would end up paying a smaller policy premium as well. However, should you get insurance for your newly bought pre-owned bike? The simple answer is Yes.
As per the Motor Vehicles Act, it is mandatory for any vehicle to have valid insurance on them always. It is irrespective of whether the bike is new or old. Thus, riding your pre-owned bike without insurance can land you in trouble. You would not only end up paying hefty fines but the financial liability of any incident falls on your shoulders as well.
There are two different ways by which you can secure insurance for your bike:
1. Buy a New Policy
The standard way is what a lot of us are already aware of. After you buy the bike, you can purchase new insurance for the bike via any insurance aggregator or directly with an insurance company. You can compare two wheeler insurance online to get the best deals.
When you compare two-wheeler insurance, you will receive insurance quotes from various insurance providers. You can browse through the different policy coverage and the premiums for the same. You can also browse through the different add-ons available to enhance your policy.
And the best part of it all is that when you compare two-wheeler insurance, you do not have to pay anything for the comparison.
2. Transfer an Existing Policy
However, there is another smarter way of handling insurance if you wish to buy an old bike. If the previous owner of the bike had valid insurance and there is still some time before renewal, you can transfer the policy to your name. Here are the documents that you would need to transfer the policy to your name.
- Registration certificate
- Insurance policy in Original
- Bike details along with dealer details
- Ownership transfer date
- No Objection Certificate from the previous owner
- Buyer and seller’s personal details
- Aadhar Card or PAN Card of the buyer
- Driving License
- Contact Details
In order to transfer the insurance, you need to apply for the same with the insurance provider within 14 days of the bike’s purchase. You would then need to fill up a proposal form stating the details of the ownership transfer.
You need to submit Form 29/30/Sale deed along with any other document that the insurance provider might ask for. After paying a nominal transfer fee, the policy will be transferred to your name.
Irrespective of which method you follow, it is essential that you buy insurance for the bike that you purchase. Buying your policy through insurance brokers online will help you save a considerable amount of time and money.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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