Old Bike Insurance

Old bike insurance, or old motorcycle insurance, is a type of bike insurance policy that helps cover the repair or replacement expenses of your old or long-owned bike arising from accidents, theft, natural disasters and other unexpected events.

It also covers third-party bodily injuries and property damage caused by accidents involving your insured old bike.

By purchasing old motorcycle insurance, you can protect your bike, irrespective of its age, even if it is a 10 or 15-year-old bike and stay financially secure and legally compliant.

TATA AIG offers old bike insurance plans with flexible features that allow you to pay for only what you need.

To comply with legal requirements

As per the Indian Motor Vehicles Act, 1988, it is mandatory to have at least a third-party insurance for your old bike. This legal requirement is irrespective of the bike’s age.

To avoid hefty penalties

If you are caught riding without a valid bike insurance policy, you may have to pay a penalty of ₹2,000 for the first offence and ₹4,000 for the second offence. In certain cases, they may include imprisonment for up to three months, and the authorities may also suspend your driving licence.

To stay financially protected against accidental damages

Repair or replacement expenses are generally higher for old vehicles. This is because spare parts may not be easily available, may be in high demand, or may come at a higher cost. Having old two-wheeler insurance helps in reducing this financial burden.

To ensure financial security against third-party liabilities

Third-party liabilities arising from bodily injury or property damage can result in high expenses and prolonged legal proceedings. This can add up to your out-of-pocket expenses. With a bike insurance policy for your old bike, you can cover these expenses.

To ensure protection against damages due to natural/man-made disasters

Damage to your old bike caused by natural disasters such as storms, cyclones, or earthquakes or man-made events like riots and strikes, can result in expensive repairs. A two-wheeler insurance policy helps cover these costs and reduces your financial burden.

The bike insurance plans available for an old bike are similar to those offered for any standard two-wheeler insurance policy. Based on your coverage needs and budget, you can choose from the following options:

Third-party Bike Insurance

A third-party bike insurance policy covers legal and financial liabilities arising from bodily injuries, death or property damages caused to a third party by your insured bike. However, it does not cover damages incurred to your own bike.

Own-damage Bike Insurance

An own-damage bike insurance policy covers damages to your bike caused by accidents, theft, natural disasters, and other unforeseen events. However, it does not cover third-party liabilities.

Comprehensive Bike Insurance

A comprehensive bike insurance policy covers third-party liabilities and damages to your own bike. It also offers a personal accident cover for the owner-driver and a diverse range of optional add-ons for improved protection.

Please note: These are some of the key inclusions and exclusions. The coverage can differ based on individual circumstances. Kindly check your policy wording or contact us for specific details.

Essential Financial Protection

With adequate coverage under your old bike insurance policy, you can be financially prepared to handle repair and replacement expenses arising from accidents, damages, or unforeseen events.

Ensures your bike remains well-maintained

If you value your old bike, keeping it in the best condition possible is important. With adequate coverage under the old motorcycle insurance policy, you can get necessary repairs done promptly after any damage.

Option to Reduce the Impact of Depreciation

Depreciation on certain replaced parts is accounted for during a claim. This can reduce your claim payout and increase your out-of-pocket expense. By purchasing the Zero Depreciation Bike Insurance, you can reduce this impact, subject to the policy conditions.

Coverage Based on Needs

You can get an old bike insurance policy with coverage features and benefits based on your specific usage conditions. Customise the policy with the right IDV and optional add-ons for enhanced protection.

Coverage Available Regardless of Vehicle Age

You can buy an old two-wheeler insurance policy to ensure continued financial protection for your bike, irrespective of its age, subject to policy conditions.

Simple and Hassle-free Processes

When you have the essential documents ready, you can buy or raise a claim under your old bike insurance policy through a smooth and straightforward process.

The premium, or the old bike insurance cost, is mainly calculated based on two key factors: depreciation and the bike’s Insured Declared Value (IDV).

As a bike gets older, its value reduces due to regular wear and tear. This reduction in value is known as depreciation.

Parts made of rubber, nylon, fibreglass, and plastic tend to depreciate faster. This increases the overall depreciation of the bike.

Depreciation is taken into account while calculating the IDV. The IDV represents the current market value of your bike and is also the maximum amount you can receive in case of total loss or theft.

Since the premium is calculated based on the IDV, the depreciation applied to an old bike directly impacts the premium amount. The standard depreciation rates used to calculate IDV are as follows:

As the depreciation increases for older bikes, the IDV generally becomes lower. A lower IDV results in a lower premium, but it also means reduced coverage during a claim.

To stay adequately protected, ensure you choose the maximum possible IDV and enhance your coverage by opting for relevant add-ons.

• Age and IDV: The primary factor that affects the old bike insurance cost is the Insured Declared Value (IDV). IDV is determined based on the bike’s age and the applicable depreciation value. The higher the IDV, the higher the premium.

• Make and Model: Your bike’s make, model, and technical specifications, including the engine’s cubic capacity, are considered to determine the premium. Higher-end models or luxury bikes generally attract a higher premium due to increased repair costs.

• Bike’s Current Condition: The overall condition of your bike, especially in the case of second-hand bikes, including its maintenance level, kilometres driven, and mileage, can impact the premium. Well-maintained bikes will help you reduce your premium for second-hand bike insurance.

• Location: Your location is a key factor that will determine the old bike insurance premium. The premium is higher if your bike is registered in a high-traffic or accident-prone zone.

• No Claim Bonus: If you do not make any claims during the policy period, you earn a No Claim Bonus (NCB). This helps reduce your premium at the time of your old bike insurance renewal. The NCB gets accumulated for every claim-free year. You can benefit from up to a 50% discount on the premium for 5 consecutive claim-free years.

• Traffic Violations and Claim Records: If you are involved in multiple traffic violations and also have a history of raising claims more often, then it indicates a higher risk. A higher premium is charged in such scenarios.

Step 1 - Open the TATA AIG’s Bike Insurance Premium Calculator page.

Step 2 - Provide your bike’s registration number and proceed to click on “Get Price”.

Step 3 - The system will fetch your bike details. Check the information and proceed.

Step 4 - Choose the most suitable old motorcycle insurance policy and select the necessary add-ons.

Step 5 - Based on your inputs, the premium quote is calculated and displayed. Revise the inputs if necessary for a revised or more affordable premium.

When you buy any product, you look for the best features at the right price. Similarly, when purchasing or renewing an insurance policy for an old bike, there are certain factors that you should consider. Let’s discuss them one by one:

Coverage

You should first decide the type of coverage your old bike needs and then compare and choose the most suitable policy. For example, if you want only to meet the mandatory legal requirement, you can opt for a standalone third-party insurance policy.

However, if you also want protection against your bike’s own damage, a comprehensive bike insurance policy for old bikes would be a better choice.

Insured Declared Value (IDV)

The Insured Declared Value is the current market value of your bike. It is calculated by considering the bike’s age and the applicable depreciation on certain parts.

Determining the right IDV for your old bike is important. This is because it is the maximum amount you can receive from the insurance policy if the bike is stolen or is damaged beyond repair.

Premium

While buying or renewing your old bike insurance policy, you should carefully evaluate the premium amount. The cost of an old bike insurance policy depends on several factors, such as the type of coverage chosen, the add-ons you selected, and the IDV of your bike.

Make sure you choose adequate coverage based on your bike’s condition and one that is available at an affordable premium.

No Claim Bonus

NCB or No Claim Bonus is the bonus given to policyholders if they do not make any claims during the policy year. In the case of two-wheeler insurance, this bonus is generally given as a discount on the premium at the time of renewal.

As the NCB belongs to the owner and not the vehicle, it can be transferred. If you’re purchasing a new bike insurance policy for your old bike or switching insurers during renewal, ensure that you transfer and avail of the NCB you have earned previously.

Optional Add-ons

Optional add-ons offer additional protection for specific risks beyond the base policy coverage. Some of the most common add-ons include depreciation allowance, roadside assistance cover, engine secure, tyre and rim secure, and more.

Choose add-ons based on your usage and location. For example, if you live in a flood-prone area, opting for engine protection cover is advisable. Similarly, if you frequently go on long rides or road trips, you can consider including the roadside assistance cover.

Policy Conditions

The coverage inclusions and exclusions are specific to the policy. Therefore, make sure you read through the policy document carefully to understand what is covered and not covered under the old two-wheeler insurance policy.

Inclusions may also be subject to certain conditions. Ensure that you read and understand them as well.

• Brand Trust: Get reliable insurance coverage from a trusted brand with over 25 years of experience in the insurance industry.

• Personalised Support: Connect with our dedicated customer support team to help you select the most suitable bike insurance policy based on your old bike’s condition.

• Multiple Options: Compare and choose from a range of two-wheeler insurance plans and optional add-ons.

• Flexibility: Customise your bike insurance online for your old bike to suit your usage requirements and budget.

• Efficient Claim Settlement: Register claims online and benefit from a quick, smooth, and streamlined claim settlement process.

Steps to Buy a New Bike Insurance Policy for your Old Bike

Step 1: Open TATA AIG’s official website. Under the “Personal” tab, select “Bike Insurance”.

Step 2: Enter your bike’s registration number and click on “Get Price”.

Step 3: Review your bike details, and provide further details as requested.

Step 4: Choose the bike insurance policy and include the necessary add-ons.

Step 5: Review the premium quote and make the payment to complete the process of bike insurance online for the old bike.

Steps to Buy a New Bike Insurance Policy for Bikes Older than 15 Years

Step 1: Renew your Registration Certificate. A vehicle’s Registration Certificate is valid for 15 years. After 15 years, you must renew the RC at the RTO. Once renewed, the RC needs to be renewed every five years thereafter.

Step 2: Get a Fitness Certificate. This is to assess the working condition of your bike. It is issued by the RTO after a physical inspection.

Step 3: Proceed to buy two-wheeler insurance online for the old bike at the TATA AIG official website.

Please note: A further inspection of the bike may be initiated by TATA AIG before issuing the policy, based on the bike’s age and underwriting requirements.

Steps to Transfer A Bike Insurance Policy

If you are buying a second-hand bike that was insured with TATA AIG, the third-party insurance cover is automatically transferred to you when the ownership changes. However, you must inform TATA AIG to update the records for the second-hand bike insurance.

Step 1: Inform TATA AIG within 14 days of the ownership transfer and request the policy details to be updated in your name.

Step 2: Apply in writing to TATA AIG for the transfer of the own damage cover within 14 days. Unlike third-party cover, own damage insurance does not transfer automatically.

Step 3: Submit the original insurance policy document and the proof of sale, such as Form 29 and Form 30.

Please note: The No Claim Bonus belongs to the previous owner and not the bike, so it will not be transferred to you. However, if you have accumulated NCB under a previous bike insurance policy, it can be transferred to the new policy in your name.

Registration Certificate (RC)

• RTO Ownership Documents: Form 29 and Form 30

• Pollution Under Control Certificate (PUCC)

• Proof of Identity: Aadhaar Card, Passport, Driving Licence, etc.

• Proof of Address: Aadhaar Card, Passport, Utility Bills, Ration Card, etc.

• Previous Insurance Policy, if applicable.

• No Claim Bonus (NCB) Certificate, if applicable

• Passport size photographs

• A renewed RC and a valid Fitness Certificate are required for bikes older than 15 years.

• Not keeping the required documents handy: While purchasing a bike insurance policy, you need a few essential documents, such as a valid RC and PUCC. For bikes older than 15 years, a renewed RC and Fitness certificate is also required.

• Ignoring policy conditions and exclusions: Coverage under an old two-wheeler insurance policy is subject to certain specific terms, conditions, and exclusions. Ignoring these details can lead to a claim rejection later.

• Choosing an inadequate IDV: Opting for a lower IDV may reduce the premium, but it may not be sufficient to cover potential risks and repair costs. Selecting the right IDV is therefore important.

Old bike insurance covers third-party liabilities as well as repair and replacement expenses for older bikes due to damages caused by accidents, natural disasters, and man-made calamities.
Having a bike insurance policy is mandatory in India, whether you ride a new bike or an old one. For bikes older than 15 years, a renewed RC, a valid Fitness Certificate, and a physical inspection may be required to get insurance.

If you have purchased a second-hand bike, you can either buy a new bike insurance policy or transfer the existing policy to your name.

With TATA AIG, you can compare two-wheeler insurance plans online and choose the best bike insurance policy for your old bike with ease.