Most bike owners are emotionally attached to their first bikes. A two-wheeler is a constant companion that goes through all the ups and downs of life with you. Hence, even if you have purchased another bike or a car, you might want to hold on to your first bike.
If you identify with this sentiment and still have your first bike that was purchased more than 15 years ago, then you also need to ensure that you have a valid bike insurance policy for it since it is a mandatory requirement in India.
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Is a 15-Year Bike Too Old?
Yes and No.
When you purchase a new bike and register it with the Regional Transport Office (RTO), you receive a Registration Certificate. This has a validity of 15 years. The Motor Vehicles Act, 1988 mandated all two-wheelers to acquire a new Registration Certificate after 15 years. When you approach the RTO after the said period, your bike is inspected to check if it is fit and safe to be driven. If yes, then it is renewed for five more years.
Therefore to answer your question, 15 years is not too old if you have taken good care of your bike.
Why Do I Need Bike Insurance for a 15-Year-Old Bike?
Here are some reasons to consider:
- In India, it is mandatory for all bike owners to have a third-party bike insurance policy. Even if you are not opting for comprehensive bike insurance, you need to ensure that you at least have third-party liability cover.
- The risk of theft of an old bike is higher due to its antique value
- Any sudden malfunction of a part can result in an accident. Such malfunctions are more probable with older bikes.
Things to Consider While Buying Two-wheeler Insurance for a 15-year-old Bike
- As the bike ages, you need to give the machine some rest. Hence, you might avoid taking it on long road trips or through challenging terrains. Most people use old bikes for local commuting. Your bike insurance policy should be chosen according to your usage of the vehicle.
- Choose the right type of policy. While a third-party policy is mandatory, comprehensive plans are optional. Make sure that you assess the coverage offered by insurers and the premium charged. Insurers might charge a higher premium for old bikes. Ensure that you choose a cost-efficient policy.
- The trickiest part of buying bike insurance for an old bike is the Insured Declared Value (IDV). When you buy insurance for a new bike, the insurer determines the IDV based on the current value of the vehicle. This is the sum insured by the policy or the amount the insurer will pay in the event of complete damage to your bike. As the bike ages, the IDV drops due to depreciation.
However, the IRDAI provides the rate of depreciation for only up to five years. Beyond that, the IDV is mutually agreed upon between the insurer and the bike owner. Make sure that you talk to a few insurers before finalising any offline or online old bike insurance policy.
- Bike insurance policies have a lot of terms and conditions. Before you buy a policy, make sure that you go through the policy wordings and the inclusions and exclusions. This will help you understand the scope and extent of the coverage.
Summing Up
Remember, bike insurance offers legal and financial protection for your two-wheeler. As the bike ages, it demands more repair and maintenance. While the insurance for bikes offers compensation for damages due to accidents or disasters, it does not cover damages due to the wear and tear of the bike. Make sure that you assess your requirements and choose the best insurance option for your bike.