One of the most overlooked aspects before deciding to buy a used bike is checking your bike insurance. A thorough review of bike insurance policies and its benefits can save you from legal hassles.

New Delhi: Buying a used bike can be a practical choice, especially for those on a budget or learning to ride. However, before purchasing the vehicle, you must check the general condition, mileage and even the proposed price of the bike. One of the most overlooked aspects before deciding to buy a used bike is checking your bike insurance. An in-depth review of bike insurance policies and benefits can save you from legal hassles.

So, this blog will highlight the importance of getting bike insurance, so keep reading till the end.

Why is the bicycle insurance check important?

Checking bike insurance is an essential aspect for everyone. Here is the importance of doing a bike insurance check:

In India, as per the Motor Vehicles Act, 1988, having third-party bike insurance is mandatory for every cyclist. You may be penalized if you find yourself without insurance coverage for your bike.

You must make a bike insurance check when buying a used bike to make sure there is no existing insurance policy. Additionally, you should transfer ownership of the existing insurance policy to avoid legal issues down the road.

Pending premiums or unsettled claims can pose a serious liability for a used bike owner. A bicycle insurance check is therefore important in this case to avoid any complications.

In the event of an accident, theft or damage, a valid insurance policy provides financial protection in the event of an incident. Additionally, it reduces the personal expenses of a used bike owner.

Steps to carry out the bike insurance check of your used bike

Here are the key steps to verify and validate the insurance details of the used bike you are considering purchasing:

Step 1: Check the validity of the policy

One of the most important steps to take before purchasing a used bike is to request a copy of the bike insurance from the current owner. Once you get your hands on this document, be sure to check the policy number, policy type, and expiration date. If the policy has already expired, you must renew it immediately.

Step 2: Confirm transfer of ownership

Transfer ownership of the bike insurance if you have already decided to buy the bike. Follow these steps for the transfer:

• Submit a No Objection Certificate (NOC) from the previous owner to the insurer.
• Provide an updated Registration Certificate (RC) with your name as the new owner of the bike.
• Complete the insurer’s transfer formalities and pay a nominal transfer fee.

Step 3: Check Pending Premiums or Claims

Requesting a Claims-Free Bonus (AON) certificate is an effective approach before purchasing a used bike. Thanks to this document, you will know whether the former owner made a claim or not. You will receive a discount upon renewal if no complaints are raised.

Step 4: Inspect Insurance Type

Knowing the type of bike insurance that’s right for you will help you pay the right premium amount. Here are the different types of bicycle insurance you can take out:

• All-risk insurance: This includes third party cover and guarantees financial protection against accidental damage, theft, natural calamities and much more.
• Civil Liability Insurance: This is mandatory and covers financial responsibilities arising from physical damage caused to third parties.

Step 5: Verify the authenticity of the insurer

As the owner of a used bike, you should check all the policy details with the official website of the insurer or customer service. Additionally, you can use platforms such as the Insurance Information Bureau (IIB) to confirm policy details.

What to do if bike insurance is invalid or missing?

After purchasing a used bike, if you discover that the bike insurance is invalid or missing, follow the steps below:

• Renew the policy immediately

If the previous insurance has already expired, you should renew it immediately to avoid legal complications down the road.

• Opt for complete coverage

You may consider taking out a comprehensive insurance policy, in case the existing policy only concerns a third party. This will give you better coverage in different situations.

• Compare insurers

Before taking out bike insurance, comparing different insurance policies online will be a good idea. So you can see what features you will get and what bonuses.

Key document for the transfer of bicycle insurance

To ensure a smooth transfer of bike insurance ownership, you will need the following documents:

• Original bicycle insurance policy
• Update the registration certificate (RC)
• No Objection Certificate (NOC) from previous owner
• Valid pollution under control certificate (PUC)
• Address proofs and identity documents
• Form 29 and Form 30 with signature of both parties for transfer of ownership

Last words

Overall, buying a used bike can be a smart decision, if you take the necessary precautions. This includes carrying out a thorough bike insurance check to ensure legal compliance. Also make sure you have all the required documents for the transfer of ownership that will ensure the process goes smoothly. You will also be assured that your vehicle is financially protected once you start driving. So don’t wait any longer to carry out your bike insurance check today.

Bicycle transfer insurance policy: steps, documents required for a used vehicle