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Do I need to buy insurance for a second hand bike?

By Finserv MARKETS - Sep 12,2019
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Bike Insurance For A Second Hand Bike

Indians are quite reluctant when it comes to buying any form of insurance. They love pushing their luck until the inevitable happens. Statistics show that a very small number of two wheeler owners in India buy bike insurance after the first or second year.

The same problem is rampant among second hand bike owners. After the transfer is done which again requires a valid insurance certificate, they seldom renew their bike insurance the following years. According to data, 1 in every 3 Indian households owns a two-wheeler. However, 60% of vehicles in India are uninsured and a large chunk of these vehicles are two wheelers. Actually, there are millions of people plying on Indian roads every day without an insurance policy; risking their own lives and those of others.

You absolutely need to buy an insurance policy whether it’s a new or a second hand bike.

Why you should buy bike insurance for your second hand bike?

According to the Ministry of Road Transport and Highways, two-wheelers account for approximately 76% of urban traffic and 34% of all casualties on the road as per 2015-16 data.

According to the Motor Vehicles Act, 1988, driving a vehicle without mandatory third party insurance is a punishable offence. You must at least have a third-party liability insurance to ride your pre-owned bike on the road. However, third-party bike insurance is not enough when it comes to covering the cost of repairs in case of accidents.

To cover such damages, you need to buy a comprehensive insurance policy such as the bike insurance available on Finserv MARKETS. Here, you can get comprehensive two wheeler coverage starting as low as Rs.1389 per year.

5 reasons your second hand bike needs insurance

  • Costly repairs

Accidents don’t come announced and when they come they can burn a hole in your pocket if you don’t have bike insurance. Paying for costly repairs out of pocket can be frustrating as it will put a strain on your finances.

  • Heavy fines

The New Motor Vehicle Act 2019 demands stiff penalties from those violating traffic rules such as driving without a license, insurance papers, helmets, etc.

  • Legal liability

You may be inviting serious legal liability by not buying bike insurance. In case you meet with an accident and cause injury, death or damage to third-party property or life, you will have to pay a huge amount of money to the other party. You may lose more than you can imagine if you are not covered by third party liability insurance.

If you are yet to buy a policy, delay no more. Compare quotes of various bike insurance companies and buy it today. With bike insurance available at Finserv MARKETS you get 24×7 assistance and cashless claims across 4000+ top garages in the country.

  • No ‘No claim bonus’

You can take advantage of no claim bonus (NCB) if you are regular in renewing your bike insurance. For continuous claim-free years, you can earn up to 50% discount on your annual insurance premium as NCB. However, you cannot take advantage of this discount if your policy lapses.

  • Renewal is tedious

Once a bike insurance policy lapses its tedious and even expensive to renew the policy. If you have crossed the 90-day period, you may have to go through a physical inspection and some insurers may ask for additional charges to insure your bike. However, with bike insurance you don’t require a physical inspection even if the insurance policy has lapsed. You can buy an insurance online and receive the soft copy of the policy in your mail within minutes.

The benefits of buying a bike insurance policy far outweighs the annual premium costs. Therefore, compare premiums and coverage from various insurers and buy one as soon as possible. Whether you have a new or second hand bike, you shouldn’t ply on the roads without a valid insurance certificate. Stay away from buying second hand bikes without proper insurance because the process of transfer is tedious and you have to incur extra costs of insurance. As the Motor Vehicles (Amendment) Bill has introduced stiffer fines and penalties, it’s a wise idea to stay away from violations of road and traffic rules.

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522