When you are looking to buy a bike, that is when you realize how perplexing it can get. There are myriad choices of bikes available, starting with a new or a used one. Depending on your riding skill and purpose, buying a new or an already used bike can be decided. For pre-owned bikes, the available options in the used-bike market further narrow your search of what can be purchased.
But when opting for a second-hand bike, there are quite a few factors to consider. The condition of the bike, the kilometers rode, the service records, and other essential vehicle documents like the validity of the registration, PUC certificate, and its two wheeler insurance policy are some of them. This article enlists some critical reasons why it is essential to ensure a pre-owned motorcycle.
Be it a brand-new bike or a pre-owned one, an insurance policy is mandatory. The Motor Vehicles Act of 1988 makes it mandatory to have at least third party bike insurance for all registered two-wheelers in the country. But when buying a second-hand two-wheeler, here’s why it is essential to insure one.
Third-party risks: An insurance policy with third-party cover ensures any legal liabilities that arise out of damages or accidents to third parties are covered under the policy’s scope. Since a third-party cover is a minimum requirement, it is covered under all bike insurance policies. So, buying an insurance policy ensures the required coverage is available for you against third-party injuries and property damage.
Protection against thefts: When you opt for a comprehensive bike insurance plan, it includes theft of your bike in the policy coverage. A bike bought from your hard-earned savings or using finance from financial institutions being stolen can cause great despair and financial loss. At such times, a comprehensive bike insurance policy pays the IDV thereby lowering the financial setback.
Protection from natural calamities: Natural calamities are unpredictable causing huge losses to property and lifeform. Your vehicles are no exception, be it a new or a used bike. With a bike insurance policy, the insurance company pays the insured declared value if such a natural disaster damages your bike beyond repair.
Protection against man-made perils: The cost of repairs to your bike can be hefty in the event a riot, vandalism or strike takes place. Since these situations cannot be estimated in advance, a bike insurance policy with comprehensive coverage ensures the repair costs are reimbursed to you, the policyholder.
Regulatory requirement: Buying a bike insurance policy for your used bike ensures compliance with the Motor Vehicles Act. Not only it saves and protects against different perils and liabilities, it also saves you from being finned by traffic officials. When you buy two-wheeler insurance, a third-party policy is the least you need to buy, but a comprehensive policy is a smart upgrade to include the damages to your bike in the policy’s scope. With comprehensive plans, add-ons are a nifty way to customize it but since they are the additional cover and impact your premium, a bike insurance calculator can be used to balance the cost vis-à-vis its benefits.
These are some advantages of buying a two-wheeler insurance policy for your used bike. You can either transfer the insurance policy used by the previous owner or purchase a fresh insurance cover for a pre-owned vehicle. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
