The number of vehicles running on the road is increasing day by day. This contributes to the increasing levels of pollution and also two-wheeler accidents. In this situation, buying a new bike and adding to the chaos may not be a good idea.
Another reason for buying a second-hand bike instead of a new one could be a tight budget or for learning how to ride a bike. One can always go for the cheaper option and still enjoy the same experience of riding a bike. If you are looking to opt for a second-hand vehicle instead of a new one, we have some useful tips for you. Read on to know more.
#1 Check the Availability of Zero Depreciation Add-on
Zero Depreciation Add-on will help you retain the cost of depreciation at the time of a claim. Depreciation is the reduction in the monetary value of your bike with passing time. This Add-on will not allow an insurer to subtract depreciation from the claim amount.
Zero Depreciation is probably one of the best add-ons available in the market. However, it is not available for every bike or car as it has a certain time limit. A Zero Depreciation Add-on is offered up to 3 to 5-year-old bikes depending upon the insurance company. When you buy a second-hand bike, make sure to check the availability of this bike insurance add-on.
#2 Get the NCB Transfer Certificate
NCB is an acronym for No Claim Bonus. This is a discount rewarded to a policyholder for not raising a claim which in turn implies that the policyholder was a responsible driver. Note that NCB is awarded to the policyholder and is not limited to his/her vehicle insurance policy. Thus, while buying a second-hand bike, make sure that you acquire an NCB transfer certificate from your previous insurance company if you have any amount of accumulated NCB. This will help you get a discount on your bike insurance premium. The transfer of NCB is not included in the process of registration. You need to make additional efforts in order to get the discount applicable on your 2 wheeler insurance.
#3 Know the Actual Value of your Second-hand Bike (IDV)
IDV stands for Insured Declared Value. It is the approximate current market value of your bike that you declare on your 2 wheeler insurance policy. When you buy a send-hand bike, its market value would be lower than its ex-showroom price for obvious reasons. You can set an IDV approximately equal to the purchase price.
Remember that setting a lower IDV will bring your premium down but it will also prove to be a loss in case your bike goes under “total loss”. This is the situation when your bike’s repair or replacement cost exceeds the IDV you have set. This can happen due to a major accident or a natural calamity. On the other hand, setting a higher IDV would mean a higher premium. Thus, always set the correct amount of IDV.
#4 Make sure that Correct Information is Present on the Documents
In the past people have suffered financial losses just because of a silly mistake in the information they provided. While buying a second-hand bike, a lot of documents are being transferred from the seller to the buyer. This process needs to be smooth and flawless. The information in each document should be correct.
The records should be correctly replaced where required. For example, the transfer of Registration Certificate (RC). An insurance claim can be denied if any information on the RC does not match. Same goes for other documents like a bike insurance policy, etc.
#5 Always Buy Two-wheeler Insurance Online
Buying bike insurance is mandatory as per the law. A step forward is the compulsion is to buy a long-term bike insurance policy for new bikes. The importance of bike insurance has been made clear through strict rules and regulation. Taking this important step to minimize hassles is the key. Thus, one should always buy two wheeler insurance online. This will free you from depending upon someone else to buy a policy for you.
You can buy coverage as per your understanding and needs. Plus, the process is much faster as compared to buying the policy offline. Also, probably the most important aspect is that you will get a policy at a cheaper rate if you buy it online.
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