In India, buying a two-wheeler is a rite of passage into adulthood as well as a statement of luxury. However, as your standard of living goes up, you may upgrade to a four-wheeler. But that first bike still stands in the corner – covered in the memories of a time gone by. The bike may be old, but the associated memories never let you sell it. The new car might be bigger, more luxurious, but nothing can replace your love for your first bike! And you may even occasionally take it out for a quick ride, just to tug at the strings of nostalgia.
An old bike is one of your prized possessions, and even if you seldom drive it now, it is important to cover it with insurance for a two-wheeler to safeguard it for the times you would love a trip down the memory lane!
What is Old Bike Insurance?
A bike that is older than 10 years can be deemed as an old bike. While the depreciation in the value of the bike starts from the moment it leaves the showroom, for an old bike, the value has depreciated significantly.
So, a two-wheeler insurance policy that offers coverage to an old bike which has significantly depreciated in value is known as old bike insurance.
You can opt for either comprehensive two-wheeler insurance or a third-party bike cover, based on the usage and age of the bike.
Why is it Crucial to get Insurance for an Old Two-Wheeler?
- Legal mandate: As per the Motor Vehicles Act of 1986, it is compulsory to have at least a third-party coverage for your bike if you wish to drive it on the roads.
- Damage or Theft: Even if you are not driving your bike regularly, it can get damaged due to multiple natural or man-made causes like floods, riots, etc. A comprehensive bike insurance policy covers the cost of repairs or replacement in such circumstances.
- Third-Party Liabilities: While driving your bike, you may accidentally injure a third party or damage some third-party property. A two-wheeler insurance policy helps you pay for the claims raised by the third party in lieu of the damages caused by your bike.
Things to Keep in Mind when Insuring an Old Bike
- What is the nature and extent of your usage?
This is the first thing you should analyse before buying old bike insurance. The utility of your bike will determine the type of insurance coverage you buy for it. If you use your bike extensively, do opt for relevant add-ons to ensure complete coverage. However, if you only use your bike for short-distance rides, opt for a basic plan.
- Which insurance provider should I opt for?
There are close to 25 general insurance companies in India that offer insurance for a two-wheeler. Make sure that you compare their offerings, features and premium and find the best old bike insurance. Also, with old bikes, there are some companies that reject coverage beyond a certain age. Make sure you find a reliable provider that offers optimum and continued coverage to your bike.
- Should I buy two-wheeler insurance online or offline?
While the mode of purchase does not make a major difference, it is better to buy online insurance for the bike. Online bike insurance allows you to compare multiple policies, read all necessary policy documents on the website, browse through multiple offerings of the provider, research the reliability of the provider, check out the user reviews, get 24×7 help from the customer support and get an old bike insurance policy from the comfort of your home.
- How is the premium for an old bike insurance policy calculated?
The premium for old bike insurance is dependent on variables like:
- The Insured Declared Value (IDV)
- The age of the bike
- The make and model of the bike
- Applicable No Claim Bonus (if any)
- Previous Claim History
- Any modifications done or accessories fitted
- Add-ons opted for
- How do I determine the IDV for the old bike insurance?
The Insured Declared Value (IDV) is the current market price of the bike, after accounting for the depreciation. For an old bike, the value has depreciated significantly, and thus, the IDV will be much lower.
The one thing that can make the calculation of IDV easier is knowing the depreciation applicable for the cost of your bike. Following is the depreciation schedule for a two-wheeler in India for insurance purposes:
|Age of the Vehicle||Depreciation|
|From 1 year to 2 years||10%|
|From 2 years to 3 years||15%|
|From 3 years to 4 years||25%|
|From 4 years to 5 years||35%|
|From 5 years to 10 years||40%|
|More than 10 years||50%|
You can determine the IDV based on the above table as well as by being aware of the market value of your bike. For bikes older than 10 years, the IDV is generally decided mutually by the provider and the policyholder based on the annual inspection report of your bike.
- Should I opt for any add-ons with my old bike insurance?
Bike insurance companies have a restriction on the provision of add-ons for older bikes. The number of add-ons you can buy for an old bike decreases with an increase in the bike’s age. So, consult with your insurance provider and understand the add-ons available for your bike. When you buy two-wheeler insurance, you can select and opt for the add-ons that you need.
Steps to Buy/Renew Two-Wheeler Insurance for Old Bike
- Compare: As already mentioned, it is crucial to compare different policies before buying bike insurance. Insurance companies have varying guidelines for insuring an old bike, especially bikes older than 10 years. Therefore, compare and find the policy that offers optimum coverage for your bike.
- Research: Once you settle on a policy, go to the official website of the provider and read the policy documents, brochures, inclusion, exclusions, features, etc. of the old bike insurance. Check the claim settlement ratio and solvency ratio of the company. Once you are satisfied with the provider and the policy, you can proceed with the bike insurance renewal or purchase.
- Choose the Type of Policy: You can choose between comprehensive bike insurance and third-party bike insurance for your policy. It is advisable to go for a fully comprehensive two-wheeler plan that offers an all-round coverage for your bike.
- Details of the Bike: Once you finalise the policy and coverage, go to the two-wheeler insurance page of the provider. Select a “new 2-wheeler insurance policy” or “2-wheeler insurance renewal”. The screen will prompt you to input certain details about your bike.
- Personal Information: You will also be required to input some personal details like name, mobile number, email ID, age, ID/Address proof, etc.
- Previous Insurance Details: If you are going for 2-wheeler insurance renewal, then you will have to input the details of your existing policy – policy number, expiry date, if any claims made last year, applicable No Claim Bonus (if any), etc.
- Get a Quote: Once you input all the data, you will get a premium quote for insuring your old bike. Confirm all the data you have entered.
- Pay the Premium Online: Once you are satisfied, pay the old bike insurance premium online.
- Get Insurance Certificate: Once your payment is processed, the insurance company will mail you the soft copy of your old bike insurance certificate.
As seen above, getting old bike insurance for your beloved two-wheeler is quite easy and hassle-free. So, make sure that you buy the perfect bike insurance for your old bike and keep it protected at all times.