Old Bike Insurance: How to Insure an Old Bike in India?

What is Old Bike Insurance?

Old bike insurance refers to a two-wheeler insurance policy for a bike/scooter that has been used for several years. There is no separate standard insurance product called "old bike insurance"; rather, an older bike can generally be insured under the available two-wheeler insurance plans, subject to the insurer's terms and vehicle eligibility.

Why Should You Insure an Old Bike?

Having two-wheeler insurance is important even when your bike is several years old. The following are some key reasons:

1. Legal Compliance

   Third-party bike insurance is mandatory even for old bikes being used on public roads in India. Riding without the required insurance can result in penalties or challans under applicable motor vehicle laws.

2. Financial Protection

   An accident involving an old bike can still lead to repair costs. A comprehensive or own-damage policy can help cover eligible losses arising from insured events, subject to the policy terms, deductibles and exclusions.

3. Protection Against Theft and Other Risks

   A comprehensive bike insurance policy can provide protection against covered risks such as theft, fire, accidents and specified natural or man-made events.

4. Continued Use of Your Bike

   If your old bike is properly registered and meets applicable fitness and other requirements, insurance helps you continue using it with the required financial and legal protection.

Can You Get Bike Insurance After 15 Years?

Yes, an old bike can generally be insured after 15 years, subject to applicable registration, fitness and insurer eligibility requirements. In India, a private vehicle's registration is generally valid for 15 years from the date of initial registration. After this period, the vehicle needs to comply with the applicable re-registration requirements of the concerned RTO, including fitness-related requirements where applicable. Therefore, if you own a bike that is more than 15 years old, check the following things carefully:

• Its registration is valid and has been renewed as required.
• The bike meets applicable fitness requirements.
• The vehicle has the required pollution certificate (PUC for bike).
• The two-wheeler insurance policy is valid.
• All vehicle and ownership details are accurate.

The availability of comprehensive or own-damage bike insurance for a very old bike may depend on the insurer's underwriting rules, the vehicle's condition, and other applicable factors.

What Types of Two-Wheeler Insurance Can You Buy for an Old Bike?

The right policy depends on the level of protection you need. Here are three types of plan available for the protection of your bike:

1. Third-Party Bike Insurance

   Third-party bike insurance is the minimum mandatory cover for a bike used on public roads. It covers your legal liability arising from covered third-party injury/death and third-party property damage, subject to the policy and applicable law. It does not cover damage to your own bike.

2. Standalone Own-Damage Bike Insurance

   Standalone own-damage bike insurance cover protects your bike against covered own-damage risks. It can be considered when you already have the mandatory third-party bike insurance policy.

3. Comprehensive Bike Insurance

   Comprehensive bike insurance provides third-party liability protection along with own-damage bike insurance cover for specified risks. Depending on the policy, it can protect an old bike against risks such as accidental damage, theft, fire, natural calamities, and man-made events. The coverage is subject to the policy's terms, conditions, exclusions and deductibles.

Factors That Affect Old Bike Insurance Premium

The premium for an old bike is determined by several factors. Some of the important ones include:

1. Insured Declared Value (IDV)

   IDV represents the insurer's maximum liability for the vehicle in the event of total loss or theft, subject to the policy terms. As a bike gets older, its value generally depreciates. For vehicles older than five years, IDV is generally determined based on the vehicle's condition, market value, and mutual agreement between the insurer and the policyholder, rather than applying the standard depreciation schedule.

   A lower IDV can generally result in a lower own-damage premium, but choosing an unrealistically low IDV may reduce the amount payable in the event of a total loss.

2. Bike's Age

   The age and condition of your bike can affect its value and the insurer's assessment of the risk.

3. Engine Capacity

   The bike's engine capacity, along with its specifications, can influence the premium, particularly for third-party bike insurance, where applicable rates are linked to engine capacity.

4. No Claim Bonus

   If you have not made eligible claims during previous policy periods, you may have accumulated a No Claim Bonus in bike insurance policy available with the own-damage component. NCB is linked to the policyholder and is subject to the insurer's applicable terms. It does not apply to the third-party bike insurance premium.

5. Claims History

   Your previous bike insurance claims history can influence the premium and the NCB available at policy renewal.

6. Bike Insurance Add-ons

   Bike insurance add-ons increase the premium but can provide additional protection where available and suitable for the bike.

What Should You Check Before Buying Insurance for an Old Bike?

Before purchasing or renewing a bike insurance policy, consider the following:

• Check that your RC and registration details are valid and accurate.
• Compare the coverage offered by different policies.
• Choose an appropriate IDV for the bike.
• Check whether the insurer offers the desired coverage for your bike's age.
• Review policy exclusions and deductibles.
• Check your accumulated NCB before renewal.
• Choose only relevant two-wheeler insurance add-ons.
• Keep your previous policy and vehicle documents available.
• Check whether the bike requires inspection before policy issuance.
• For a very old bike, it is particularly important to check the vehicle's registration and fitness status before buying or renewing insurance.

Documents Required for Old Bike Insurance

The exact documents may vary depending on the insurer, transaction and vehicle details. Commonly required information or documents may include:

• Registration Certificate (RC)
• Previous insurance policy, if applicable
• Vehicle details
• Valid pollution certificate, where applicable
• Identity or address details, where required
• Other documents requested by the insurer for verification or inspection

If your bike is more than 15 years old, ensure that its registration and other applicable documents are up to date before purchasing insurance.

How to Buy or Renew Old Bike Insurance Online?

You can compare and purchase or renew bike insurance online at Policybazaar.com by following these general steps:

• Step 1: Visit the official website of Policybazaar Insurance Brokers Private Limited at policybazaar.com and click on the 'Bike Insurance' or ‘Two-Wheeler Insurance’.
• Step 2: Enter all the required details, such as the vehicle number, and click submit.
• Step 3: Compare & choose old bike insurance plans offered by bike insurance companies. Select the IDV and add any customisations as required.
• Step 4: Once submitted, you will get the premium amount. Pay the amount using online payment methods (debit/credit card, UPI, Net Banking). Your policy will be issued and sent to your registered email ID.

Note that IDV is usually 10% less than the Previous Year's Policy.

What Happens if You Let Old Bike Insurance Expire?

You should avoid riding an old bike with an expired insurance policy. Third-party insurance is mandatory for a vehicle being used on public roads. If your own-damage policy expires, you may also lose protection against covered damage to your own bike until a new policy is issued.

Before renewing an expired policy, check the insurer's requirements. A vehicle inspection may be required depending on the insurer, policy type and duration of the break in coverage.

Can You Buy Add-ons with Old Bike Insurance?

Add-ons may be available for comprehensive or standalone own-damage bike insurance policies, depending on the insurer and the bike's age and eligibility. Common bike insurance add-ons can include:

• Roadside Assistance Cover
• Engine Protection Cover
• Consumables Cover
• Personal Accident-related covers, where applicable

Not every add-on is suitable or available for an older bike. You have to check the insurer's eligibility conditions before selecting one.

Conclusion

Old bike insurance is essential for staying legally compliant and protecting yourself from unexpected repair or liability costs. As a bike gets older, its IDV, premium and coverage options may change. Before buying or renewing, check its registration and fitness status, compare coverage, use eligible NCB benefits and choose relevant add-ons. A suitable policy can help you continue riding your old bike with financial protection and peace of mind.

FAQs - Old Bike Insurance