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Insurance do’s and don'ts for a second-hand bike buyer

By Finserv MARKETS - Sep 13,2019
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Bike Insurance For A Second Hand Bike

India has the world’s largest two-wheeler market and there are millions of two-wheelers sold and bought every year. As the market for new two-wheelers grows, there is also a growing demand for second-hand bikes. Though India has a highly unorganized pre-owned two-wheeler market, the recent entry of big brands such as Hero MotoCorp, Royal Enfield, Ducati, Harley Davidson, and others in this sector will give much boost to the second-hand bike market.

According to estimates, more than 17 million used two-wheelers change hands every year in India, mostly through the unorganized sector. Due to the lack of a reliable and efficient platform for used two-wheeler transactions, customers have to risk being duped by shady individuals and dealers. Faulty vehicles, expired insurance policies, bikes on loan, delay in transfer of registration, etc. are regular problems that used bike buyers have to face.

Apart from physical inspection, you need to do a thorough check of documents before taking possession of a second-hand bike.

Do check the following before you buy a used bike:

  • Registration certificate (RC)

Verify the engine and chassis number on the bike with those mentioned in the RC. Also, check the colour, number of owners, name of the current owner, date of manufacturing, etc. before you make the final payment.

  • Road tax certificate

You should also take possession of the road tax certificate when you buy the bike. Keep it in a safe place as you may require the document in the future.

  • Pollution under control (PUC) certificate

It is mandatory under the Motor Vehicles Act to carry out regular PUC checks and obtain a certificate every 3 or 6 months. Though a PUC certificate doesn’t cost much, a bike owner who maintains it regularly shows that he loved his bike and is also a responsible rider.

  • No objection certificate

It is very important to obtain a NOC for transferring the ownership of the bike from one RTO to another. Don’t forget to ask the previous owner to get this from the current RTO.

  • Full-service history

Though not mandatory to obtain, a full-service history shows that the bike has been regularly serviced and there have been no major accidents or breakdowns.

Apart from the above-mentioned documents, there is one very important document that you need to check and that is the insurance certificate.

  • Insurance certificate

It is perhaps the most important document after the RC. Third-party coverage is mandatory by law but insist on buying a bike with comprehensive insurance that has own-damage coverage as well. If you are buying a two-wheeler without valid insurance, there are various repercussions you may have to face.

In case, the insurance coverage on the second-hand bike has expired, you should factor the insurance cost on the overall cost of the bike and asked the previous owner to reduce the price. Then, you should online buy bike insurance as soon as possible.

With bike insurance available on Finserv MARKETS, cashless insurance claims are easy since it has a partner network of 4000+ garages across the country. And if a garage is not part of the network, bike insurance will still pay 75% of the repairs to the bike owner.

Insurance dos and don’ts for a second-hand bike buyer

  • Valid insurance to obtain NOC

Without valid bike insurance, you can’t obtain NOC for transfer of the bike from the current RTO to another. Meaning, you cannot transfer the bike from one state to another. Therefore, ensure that the bike’s insurance certificate has not expired.

  • Transfer of bike insurance policy

If the previous bike’s insurance policy has not expired, you need to transfer the insurance policy within 14 days of the purchase. In fact, it is the duty of the seller to assist with the transfer process because any liability arising out of the bike during this period will be on the previous owner.

  • Valid insurance for transfer of ownership

A valid bike insurance certificate is also required for transfer of ownership. In case the insurance policy has expired, the new owner or the previous owner has to buy two wheeler insurance and renew the policy. Even if the policy is paid for by the new owner, the insurance policy has to be still brought in the name of the previous owner since the transfer of the vehicle is yet to take place. After the transfer of ownership has taken place, the new owner can then transfer the insurance policy in his name within a specified period. To avoid this tedious process, it’s better to avoid buying a used two-wheeler without a valid insurance certificate.

If you are a second-hand bike owner, don’t forget or delay in renewing your bike insurance on time every year. When a two wheeler policy expires, you also lose a valuable no claim bonus (NCB) that helps you save money on yearly premiums. With two wheeler insurance available on Finserv MARKETS you can enjoy up to 50% NCB if you renew and buy two wheeler insurance regularly. Read more about what is ncb in bike insurance to avail this benefit.

Read our top blogs to know more about bike insurance in India:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522