Bharti AXA TWO WHEELER Insurance How to Buy Bike Insurance Policy for Old Vehicle 17 Apr 2018 Guide to getting two-wheeler insurance for old vehicles Buying two-wheeler insurance has become essential and mandatory for anyone who owns such a vehicle. This is because it will protect you from risks and provide you adequate compensation if your two-wheeler meets an accident or is stolen. In many cases, two-wheeler insurance renewal takes place on an annual basis. However, now many insurance companies are also offering policies that can be renewed every three years. So here we discuss some things that should be kept in mind when purchasing a two wheeler insurance for old vehicles. 1. No grace period Make sure to get the insurance policy renewed right on the day it is getting expired. Any further delay could complicate matters. This is because any day after the expiry date will mean that your policy has lapsed. Now a physical inspection of the vehicle is a must even for the renewal of the insurance. Suppose your two-wheeler undergoes any damage or theft on any such day, your vehicle would not be insured as now the insurance policy has lapsed. You would be held accountable for the damage. This could be a huge financial blow. 2. IDV and Depreciation The IDV or the Insured Declared Value is the maximum sum assured which is provided by the insurance company in situations of theft or loss of the two-wheeler. It can also be said that the IDV is the current market value of your vehicle. Usually, a range of 5% to 10% is provided by the insurance company to decrease IDV (which could be chosen by the customer). It is a general tendency for lower IDV to attract a lower premium. It is a general fact that older the vehicle is, the lesser its IDV will be. However, the IDV is not based on value depreciation after a period of five years. Now the IDV is determined based on a mutual agreement between the customer and the insurance company. A surveyor from the insurance company would evaluate the condition of the two-wheeler to determine the correct price. 3. Relation of low Premium and Insured Declared Value Just like the IDV, the premium also gets lower as the vehicle ages. However, a mistake that many customers commit is that they start showing a lower IDV in order to pay a lower premium. The issue is that with low IDV you cannot claim more than the IDV in case of an accident. This happens even if the market price of your vehicle is higher than that. Therefore, it would be a loss for you as the compensation would not be adequate. 4. Important Add-ons (optional) For old two-wheelers, you can opt for add-ons with the insurance policy. In most cases, you need to pay some amount over and above the basic premium for them. This includes additional covers like the total cover which includes road tax, registration amount and insurance premium. Therefore, if you are buying an old two-wheeler or already have one, you need to ensure that you must subscribe to a two wheeler insurance policy. The next step is to keep in mind, the policy renewal dates. Even if the premium seems a bit high than usual, don't ditch that policy blindly. More than the premium, take into the account the benefits that you will get over time regarding insurance on an old vehicle. This would be useful in the long run and will cover you in case of any unexpected contingencies. Explore Our Products Car Two Wheeler Travel Health Bharti AXA Advantages We've raised the bar in being your Two wheeler's ideal insurance companion 4.2 MILLION POLICIES ISSUED 79 BRANCHES ACROSS INDIA 3800+ CASHLESS GARAGE 24/7 CLAIM ASISTANCE Get Quote Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.