5 Tips for Owners of Second-Hand Bike

  • Author :
  • TATA AIG Team
  • Published on :
  • 23/04/2021

Having a vehicle to travel is important, and a two-wheeler is always a more economical and convenient option to go from one place to another. In India, the number of two-wheelers on the roads is growing due to their cost-effectiveness and their ability to make transportation easier.

Insurance for Bike: New or Second Hand

Bike insurance makes it easier for you to ride your two-wheeler on the roads without any worries, knowing that your bike will be protected against damage. As such, a third-party two-wheeler insurance cover is mandated by law. However, it is important to note that a third-party insurance cover only protects the owner from the financial liabilities arising from damage or injury to third-party property or person. Hence, a comprehensive bike insurance cover will help you manage the other costs that cannot be borne by a third-party cover.

Sometimes, you may not want to buy a new bike for reasons best known to you. Here, a second-hand bike may be a good choice. It is not necessary that the second-hand vehicle would be an old one; the owner may want to sell their vehicle only a few months after its purchase. But more importantly, along with the bike, there are a few essential documents and points that you need to be alert about. Below are five such tips that an owner of a second-hand bike should follow.

What should you know as a second-hand bike owner?

  • Buying 2-wheeler insurance online

When you purchase a second-hand bike, the insurance needs to be transferred to your name. However, if you want to get insurance from another insurance company, then you are at liberty to do so. Since vehicle owners are legally bound to have vehicle insurance on them at all times, it is not advisable to leave your bike without insurance cover, even for a few days. Hence, buying bike insurance online is a quick and convenient way to protect your bike. Moreover, the absence of overhead costs in online insurance purchase makes the policy more affordable.

  • Know the used bike’s IDV

A bike’s IDV or Insured Declared Value is around the current market value of the vehicle. In the case of a first-hand bike, the market value starts depreciating over a period of time. Similarly, a second-hand bike too will have a slightly lower market value than its ex-showroom price. Be sure that the IDV of the second-hand bike is as close to the purchase price as possible.

This is important as the IDV is what one receives when their bike undergoes “total loss”, which could be either complete damage or theft. With a lower IDV, it will become difficult to compensate for the total loss, and a higher IDV would mean higher premiums.

  • Genuine information on documents

Buying a used bike involves a lot of documentation necessary for the transfer of owners. Therefore, it is essential to ensure that correct information, such as the buyer/seller details, bike’s details, etc., are correctly included in all the documents.

When it is time to file a claim for damages, the right information on your insurance documents matters the most. A single error, even a spelling mistake, can be responsible for claim rejection. As such, the claim process in reputed insurance companies is smooth and quick.

However, it is always better to clear inconsistencies in the information while purchasing a policy so that there may be no hassles while filing a claim.

  • Transfer of the No Claim Bonus

The No Claim Bonus is a benefit provided by insurance companies to safe drivers and policyholders. The NCB is important during the online renewal of bike insurance, as the NCB discount from the current policy year will help the bike owner pay a lowered premium in the coming policy year.

Remember that the NCB cannot be transferred to the new owner while one is purchasing a second-hand bike. The NCB discount is a reward given to the owner-driver for being a safe driver and not filing any claims in a policy year. So, the seller retains their No Claim Bonus.

However, if you had a previous vehicle and had accumulated NCB on its vehicle insurance, then you can definitely get your NCB transferred to your new policy.

  • Zero Depreciation Cover

After the purchase of a bike, the value of the vehicle depreciates. When you file a claim for damages to your bike, a Zero Depreciation add-on helps retain the cost of depreciation. Hence, the insurance company will not deduct the depreciation from the claim amount.

However, it is necessary to note that a Zero Depreciation Cover is valid for bikes that are about 3-5 years old, after which the cover will not be available. Hence, while buying a second-hand bike, the age of the bike will help you know if a Zero Depreciation Cover can enhance the policy.


Owning a second-hand bike could be a great way to purchase a bike you’ve always wanted without having to pay a hefty amount as you would for a brand-new two-wheeler. Tata AIG bike insurance further complements this joyful experience by providing a hassle-free and transparent process to purchase an insurance policy of your choice!

The following Frequently Asked Questions may help you find some more information that you may have about second-hand bikes:

Is it worth buying a second-hand bike?

A second-hand bike is worth buying if it is in good condition, functions efficiently and is less expensive than buying a new bike. Also, if you do the desired model for a more reasonable rate, then a second-hand bike is a good bet.

What should I check before buying a used bike?

You will need to check the bike’s exteriors for scratches and the mechanism to ensure everything is in working condition. Also, check the Registration Certificate (RC), the insurance papers and other related documents for correct information.

Which bike is best for 2nd hand?

While the choice of the bike is one’s personal preference, choose a bike that will meet your travelling needs. Bikes meant for daily use within city limits are not the same as those you can use for rough roads and long travels.

How much km is good for a used bike?

The kilometres (km) for a used bike will depend on the bike’s model, maintenance and year of purchase. Therefore, some bikes are good for 30,000 - 40,000 km while others could be fine for 1,00,000 km.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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