Old Bike Insurance: A Guide to Insure Your Motorcycle with a Right Policy

What is Old Bike Insurance?

Old bike insurance is an insurance plan for two-wheelers that are too old in age. In simple terms, old bike insurance policies are meant to cover those two-wheelers whose value has been depreciated over time.

Suppose you have a two-wheeler over 10 years old; you should consider it old. Even though in two-wheelers, the depreciation starts soon after you purchase it. Hence, it is your responsibility to insure them with the right coverage.

Why Choose Policybazaar.com for an Old Bike Insurance Plan Online?

The following are the reasons for renewing or buying old bike insurance online from Policybazaar Insurance Brokers Private Limited:

• Compare & choose old bike insurance plans from 17+ insurers.
• Affordable old bike insurance premiums
• Faster claim settlement process
• 24x7 customer assistance
• Zero paperwork
• Customize your policy
• Get a timely policy renewal reminder

How to Buy/Renew Old Bike Insurance Online?

Renewing or buying old bike insurance online from Policybazaar.com is hassle-free. All you need to do is enter a few basic details related to your vehicle. Here is a step-by-step procedure to renew or buy old bike insurance online:

• Step 1: Visit the official website of Policybazaar Insurance Brokers Private Limited.
• Step 2: Go to the 'Bike Insurance' 'tab from the 'Insurance Products' drop-down menu.
• Step 3: Enter your bike registration number & other relevant information.
• Step 4: Compare & choose old bike insurance plans offered by bike insurance companies in India.
• Step 5: Select the required add-on covers. You can update IDV as per your requirement. Ensure your IDV is 10% less than the Previous Year's Policy.
• Step 6: After completing the process, you will see the premium amount you must pay.
• Step 7: You can choose any mode of online payment (debit/credit card, UPI, Internet Banking).
• Step 8: Once the payment is made, get your new or renewed old bike insurance policy within 60 seconds at your registered email ID.

Why Is It Necessary to Insure an Old Bike?

You should purchase old bike insurance policy to protect it against the risks of:

• Get coverage against fire and any other related event beyond your control.
• With a mandatory third-party bike insurance for your old bike, you get covered for the liability that can arise from any damage to a third-party property due to an accident involving your two-wheeler.
• Theft coverage.
• Damages caused to your own bike due to several unforeseen risks, such as accidents, natural calamities, man-made hazards, etc.

Points to Keep in Mind While Buying Old Bike Insurance

Here are a few points that you must keep in mind while buying an insurance policy for your old motorcycle:

1. Depreciating Insured's Declared Value of Bike:

   The older your motorbike is, the lesser its Insured's Declared Value (IDV) is. IDV is the maximum sum assured that the insurance provider fixes as per the bike's current market value, and they pay this amount in case of complete loss or theft of your motorbike.

   The IDV is calculated by subtracting the depreciation value from the selling price of the bike maker. Suppose you have fitted something in your bike that was not provided by its manufacturer. In that case, its depreciation and cost are calculated and then added to the IDV of your bike separately. Therefore, if you have recently purchased a motorcycle, its IDV would be almost the same as its purchase price as it is a new vehicle. However, the depreciation factor is added with time, and the sum assured goes down. The depreciation is estimated according to the below-mentioned table:

   You may like to read: What is IDV in Two Wheeler Insurance?

   Vehicle’s Age	Applicable Depreciation (in%)
   Less than six months	5%
   Between six months and one year	15%
   Between one to two years	20%
   Between two to three years	30%
   Between three to four years	40%
   Between four to five years	50%

   After five years, the IDV of the vehicle is calculated as per the mutual agreement between the bike owner, that is, you and the insurer, and is not as per the depreciation value. In such a case, the insurer appoints a surveyor to evaluate your bike's condition and determine its cost.

2. Lower Premium:

   With the age of your two-wheeler, its insurance goes up. This is not true because, with the downfall in IDV, the value of your vehicle's insurance also decreases. However, this does not mean you should show a lower IDV of your bike for paying a lesser premium. This is because, in the case of a lower IDV, you cannot claim more than IDV in case of an accident, even if the cost of your two-wheeler is more than that. Therefore, you must mention the correct age of your bike and adjust its IDV accordingly.

3. Options for Add-Ons:

   By paying a slightly higher premium, you can add some rider benefits to your old bike insurance policy wherein you can get coverage for those parts which remains uncovered in your basic comprehensive bike insurance plan. This way, you can add total coverage for your two-wheeler up to 15 years old. You can check with your insurance provider for different add-ons available for your bike. You can reduce your two-wheeler's insurance premium without lowering your policy's coverage by making more minor claims and avoiding any modifications.

Factors Deciding the Premium of Your Old Bike

The premium of any two-wheeler is calculated as per its IDV, accessories fitted on it, past claim experience, etc. However, for an old two-wheeler, the insurance premium is based on the following factors:

• The engine capacity of the bike (CC)
• Bike's Insured Declared Value
• Age & Make, Model & Variant of the bike
• No Claim Bonus.

The Bottom Line!

A bike insurance policy gives you a sense of security despite the age of the vehicle. It ensures you have complete peace of mind from various damages that occur because of unfortunate events like theft or an accident. Therefore, you should get old bike insurance on your bike to enjoy every ride by knowing the fact that you are fully covered.