How to claim bike insurance for a second-hand bike?

Bikes are a great passion for a number of people! They are also the most cost-effective mode of transportation because they are inexpensive to buy, operate, and insure when compared to owning a car. However, not everyone prefers to buy a new bike, and some people may prefer to buy a second-hand bike. The reasons can be many, like discontinuation of a preferred model, the buyer’s limited budget, or the fact that the buyer will be driving the motorcycle for hundreds of kilometres per day for business or office use. In all situations, it is still a legal requirement and common sense to ensure that your second-hand bike is fully insured. 

How to transfer bike insurance on a second-hand bike?

One very important thing that most people overlook is that once you have purchased a second-hand bike, you must have the bike insurance transferred within 14 days of the sale. You will need to contact the vehicle’s insurer and inform them of the sale. The insurance company’s executive will inform you about the documents that you must submit. Typically, this will include:

• Registration of vehicle in the name of new owner, or sale documents if registration is not yet available

• Address and identity proofs of the new owner

• Photograph of the new owner 

• Driving license of the new owner

• Pollution Under Control Certificate of the bike, if asked by the insurance company

As most people nowadays prefer to buy bike insurance online, the transfer is simple and can be completed online. Simply login to the portal to upload the new documents and download the updated policy. Some insurance companies allow you to email them all documents that are needed and the company will make the changes for you and send you a revised bike insurance online policy back by email. 

What if you do not get the transfer done?

If you do not complete the policy transfer, two things may occur. In any case, your bike’s old policy expires after 14 days after purchase. 

1. You did not transfer your bike insurance and are stopped by traffic police. The traffic police will reject the policy issued to the previous owner of the bike. They will treat you as if you were riding a bike with no insurance at all. As per the Motor Vehicles Act, you will be issued a challan of INR 2,000 and, if the case goes to court, you may be sentenced to around 3 months in jail. 

2. You failed to transfer your bike insurance and were involved in an accident or had your bike stolen. The insurance company will summarily reject the claim if you have not transferred the insurance. You did not fulfil the policy transfer requirement, so the previous bike owner cannot be held liable for what was essentially your mistake. 

How to make a claim on second-hand bike policy?

If you have not yet transferred the two-wheeler insurance online in your name within the 14 day period of the bike’s sale, your claim will be summarily rejected because the policy is now invalid. 

If you were smart enough to complete the two-wheeler insurance online transfer, you can file a claim just as if you had purchased a new bike. Simply call up the insurance company and inform them of the problem for which you need to file a claim. The insurance company will guide you to a cashless garage or inform you about the process. 

IMAGE CREDIT: Subhash Shimbdu

SOURCE:

IRDA - Faq List (policyholder.gov.in)

IRDA - Dos and Don'ts for Motor Insurance (policyholder.gov.in)

New Motor Vehicle Rules sets in from today. Key points you MUST know | New News – India TV (indiatvnews.com)