Bike Insurance For Old Vehicles
May 23, 2022

How to Get Two Wheeler Insurance for Bikes Older Than 15 Years?

Some purchases in life are precious and close to the heart. Especially those that we might purchase with our own money. Even if they become old and unusable, it can be hard to let go of them due to the attached emotional value. For many of us, it is our first bike or two-wheeler that we might cherish for a lifetime. While it is difficult to part with one's first bike, many people also hold on to it for too long, because if sold, it will fetch no more than a very nominal amount. So, if one is planning to keep it for long, then it makes sense to get it insured.

Regulations around old two-wheelers

Every new vehicle issues a registration certificate that is valid for 15 years. According to the Motor Vehicles Act, all vehicles are required to obtain a fresh registration certificate, i.e., a re-registration after 15 years. The RTO renews it additionally for five years, where it declares that the vehicle is suitable and safe to drive. While these requirements pertain to registration, insurance is also something that needs to be complied with for the entire duration. The law mandates bike insurance as a compulsory requirement. Among the different types of insurance plans, third party bike insurance is a minimum requirement, and all two-wheelers are required to insure their vehicle with one.

Why is it necessary to avail of two-wheeler insurance for a 15-year-old bike?

It is an accepted fact that as machines get old, they need upkeep to ensure smooth functioning. Since the engine is the heart of the bike, repairs may be frequently required for older bikes. Thus, it is essential to seek consistent renewal for such old bikes. In addition, an insurance policy for bikes older than 15 years serves to protect against the following kinds of risks:
  • Damages due to fires or other damages to the engine.
  • Theft for the antique value.
  • Legal liability due to an injury to a third person or damage to their property.
*Standard T&C Apply

Things to look for while renewing two wheeler insurance for a 15-year-old bike

Here are some things to consider, especially when insuring a bike older than 15 years:

1.     Usage of the bike

The first thing to keep in mind during bike insurance renewal for an old bike is the utility of the vehicle itself. As the vehicle ages, you may not want to take it for long tours. Instead, it can be your city-commute bike. So, choosing the right insurance policy is crucial, keeping in mind its usage.

2.     Type of insurance policy to select

Once you have clarity about the usage, it is important to make the right choice for the policy. Third-party plans and comprehensive policies are two types of insurance covers to choose from. Third-party plans provide limited coverage for legal liabilities, whereas comprehensive plans provide extensive coverage for damages, including repairs.

3.     Opting for the right IDV

If you opt for comprehensive bike insurance after 15 years, you need to set the right Insured Declared Value (IDV). It is the current value of your bike and compensated by the insurer in event of complete damage. Furthermore, the Insurance Regulatory and Development Authority of India (IRDAI) specifies the rates of depreciation to arrive at such an IDV only up to five years, post which you will need to mutually decide with the insurance company. Thus, setting the right amount of IDV for such an old bike helps in receiving compensation in case of a loss.

4.     Knowing the policy terms thoroughly

It is advised to read the fine print in your insurance plan as it helps you understand the bike insurance policy specifics in detail, including any amount that you are required to pay at the time of claim. With these different tips on how to select a two-wheeler insurance plan for a 15-year-old bike, you can ensure legal as well as financial protection for your bike.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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