Insurance Policy for Used Bike

If you’re thinking of getting a bike for yourself but don’t want to spend a bomb for it, buying a used one can be a good option. Make up your mind and know what to look for in a bike you have your eyes on. Get yourself a bike that will hold up to countless miles of fun and adventure out on the open road.

Confused about what to check, where to start from? Don’t worry, we’ll guide you.

Checklist to tick off before you buy a Used Bike

Look for bikes that are appropriate for the type of riding you plan on doing - Ask yourself how and for what purpose you will be using the bike and then mould your search accordingly

Research is a must - Go online, talk to experts to know all you need to know about bikes, especially of the kind you’d like to go for. 

Check the bike out - Check the paint, scratches, any fluid leakage, tyres or any wear and tear. Check the general outer body. Keep a keen eye on any dents. Scratches can be considered ok, provided that they aren't too deep

Brakes - A majority of used bikes have drum brakes. So, test the brakes and then decide whether you would want to change them or keep them. Maybe even service would be recommended. 

Servicing record - Check with the owner on how many times the said bike has gone for servicing and, for what purposes. 

Scan the bike’s VIN number for any error - A vehicle identification number is a unique serial number used to legally identify a vehicle. On most bikes, you’ll find the VIN number stamped onto the steering neck section of the frame, just behind the headlight. Check this number against the number on the official title to make sure they match.

Lights - Headlight bulb, indicators and tail lights should be in working condition and bright enough. If not, replace the bulbs.

Check the papers - The RC book, Bike Insurance, The validity of the bike insurance, Pollution Certificate, Original Invoice, Extended Warranty (if any).

Test drive -Go on a quick ride to check the speed, mileage and if you’re comfortable with its performance or not. 

Talk to a local mechanic about scheduling a detailed inspection - Even if you’ve decided to buy your second-hand bike from a private party, it’s wise to have it looked over by a third party before you make any kind of contract. 

Once you do settle on a used bike, be sure to take it to your local bike shop for checking if you’re not mechanically inclined yourself. After this is done, it is now time to complete all paperwork which is mainly on transferring the ownership and insurance to your name. 

Transfer of ownership is important, and this is how you need to do it:

Step 1 - You need to apply for transfer of bike ownership at the same RTO where the bike owner initially got the bike registered.

Step 2 - Submit Form 29 and Form 30 at the Directorate of Transport office with original documents like RC, insurance, emission test, tax paid receipts, three passport sized photographs address proof of the seller, etc. 

Step 3 - After all verifications from the registering authority are done, the ownership along with the insurance of the bike will be transferred to you within 14 days. 

Easy right? And the documents you would need are:

• Form 29 should be filled along with the seller’s signature: 2 copies.
• Both the parties have to sign on Form 30 along with chassis print: 1 copy
• If the bike is brought from another region or RTO then he/she must produce a NOC. 
• If the bike has been bought on loan by the seller, then a NOC by the banker must be produced 
• Original RC
• Insurance copy
• Emission test
• Tax paid receipts
• Address proof of the seller
• Three passport sized photographs

According to Rule 81 of the Central Motor vehicles Rule, 1989, these above documents are to be submitted with a registration fee to the registration authority.

Transferring the respective bike insurance is equally important. It is important to ensure you have completed all procedures correctly while transferring the ownership of the bike. This ensures that the procedure of transferring the bike insurance is then easier.

Here is what you need to do to transfer bike insurance:

• The owner should apply for an insurance transfer with the insurance company within 15 days from the date of bike ownership transfer.
• Carry the necessary documents like Registration Certificate, the date of ownership transfer, details of original insurance policy, vehicle details, dealer’s name and the premiums paid.
• Along with the personal details of the owner, the buyer should also submit his/her personal ID, like PAN card or AADHAR, Driver’s License, etc. for the record of the insurance transfer. Once the insurer verifies all the document, the name in the policy will be changed to the new owner’s name.
• The owner of the bike should submit third-party insurance at the time of transfer because it is vital to calculate the bike insurance premium.
• The owner of the bike can enjoy the benefits of no-claim bonus in the form of discounts on the premium amount from the current bike on submission of the NCB certificate while he purchases insurance for his/her new vehicle.

If your second hand bike does not come with a bike insurance then you must pick one on your own, as it is mandatory by law. The most preferred policy for a second hand bike is a comprehensive insurance policy that can give you maximum coverage with customized add-ons to benefit you. You can either get your bike insured online or visit the insurance company personally with all relevant documents and choose from an array of policies, the policy that suits your bike the best.

Types of Policies for Used Bikes

Third-Party - Third-party insurance as the name suggest covers third-party losses and Personal Accident for the owner. 

What is Covered?

• Injury or death of third party
• Damage to someone else's property or vehicle
• The option of unlimited personal damage cover for owner-driver, if you don't have one already

What is not Covered?

• Add-ons like Parts Depreciation, Breakdown Assistance etc.
• Damage to own vehicle due to accident, theft, fire etc.

We recommend a Comprehensive or Standard Package policy to most customers. But, if you rarely ride your bike or it’s too old already, the Third-Party Liability only may not be a bad idea either. 

Comprehensive Policy - This policy Covers third-party losses, damages caused by accidents to your bike and Personal Accident for the owner. This is a comprehensive or standard two-wheeler insurance policy which can give your bike and of course your pocket the utmost financial security.  

What is Covered? 

• All the benefits of Third Party Insurance i.e. damage to a third-party’s property or vehicle and also any personal damages to a third-party like hospitalization, death or disability.
• Plus, damage to own vehicle due to accidents, fire, theft
• The option of unlimited personal damage cover for owner-driver, if you don't have one already

Add-on covers available with Used Bike Insurance

We give you the right add-ons for complete protection of your secondhand bike. Choose the best bike insurance add-ons with your policy to reap maximum benefits.

• Parts Depreciation Cover (Zero Dep/ Bumper to Bumper) – With time, the value of your bike will decrease, because of which its depreciation too will be charged and considered during claims. However, a  Zero-Depreciation cover nullifies the depreciation and gives you the complete cost of repair or replacement during claims at a Digit Authorized Workshop.
• Consumable Cover-In this add-on, the cost of replacement of parts like screws, engine oils, nuts & bolts, grease is covered for.
• Engine and Gear-Box Protection Cover - If an accident causes damage to an engine, it is covered under a standard package policy. But if it is consequential damage, it is not covered. Here, this add-on comes to your rescue, covering the repair charges even if there hasn’t been an accident.
• Return to Invoice Cover - If your bike gets stolen or is damaged to no repair or, its repair cost estimated is more than 75% of its IDV, we cover the cost of buying a similar new bike i.e. you get the Ex-showroom price or last invoice value, minus the IDV (Insured Declared Value). By the way, we would also then cover for the registration fee and road tax of the new vehicle.
• Breakdown Assistance (RSA) - Get 24*7 assistance if there is a breakdown on the road, and you need help up to 500 km from the city centre.

If you have more questions, get in touch with us. We will be happy to help!