A guide to getting motorcycle insurance for old vehicles

by Kanika Shelatkar Insurance Consultant

In India, bikes are considered an average middle-class person’s best friend. Considering the infrastructure of the country, it is ideal to own a two-wheeler as they are swift and easy to commute. However, there are safety concerns which makes it mandatory to hold a motorcycle insurance policy. Nowadays, it is seamless and quick to avail one, especially for new vehicles.

Most of the vehicle dealers today offer five-year policies with every bike while buying them. But if your two-wheeler is old, the process can be complicated with the need to inspect reports and other such information. According to the law, it is imperative to hold motorbike insurance. There are two kinds – third-party liability, which is also mandatory as per law, and comprehensive plan, that is optional. Since the holding of policy is compulsory, the renewal of the policy becomes essential.

Off late, insurance companies have also introduced three-year policies. Following are some facts to remember about getting two-wheeler insurance for old vehicles –

Expiry date

Make sure to renew the policy before it reaches the expiration date. If you renew after the deadline, the policy lapses and the renewal happen only after the submission of a decent inspection report. Thus, to continue the policy thoroughly, renew the insurance annually or at the end of three years, whichever is mentioned on the agreement.

Insured Declared Value

It is the maximum possible sum assured, pre-fixed by the insurance company. This value depends on the current market price of the vehicle. So, the older the vehicle, the lower the IDV. The amount gets calculated by deducting depreciation from the selling price of the bike.

Low premiums

As the vehicle gets older, the premium also lowers. Remember, never declare a lower IDV only for availing lower premium rates. A lower IDV means you are not eligible for any claims if the actual damage of the vehicle is higher. Use the premium calculator made available by the insurers on their portal. It enables you to check the payable amount based on the kind of policy and add-ons opted for.

Online

When you seek to get motorcycle insurance online for the old vehicle, the information is readily available. Enter the website of the desired insurer, and you will find everything under the bike insurance section right from exclusions to inclusions to claim process to renewals and so on. The primary benefit of doing so is gaining clarity on different aspects such as covers, compensation, the sum assured, etc.

One of the crucial steps while buying motorcycle insurance is reading the policy agreement. As aware, the conditions, benefits, and features are different for every policy. Hence, to avoid confusion at the time of making claims, make sure you aware of the policy at the time of buying one. 

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Created on Jul 1st 2020 01:59. Viewed 409 times.

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