Consequences Of Not Transferring Bike Insurance For Used Bike
Published On Feb 07, 2022
When purchasing a secondhand automobile, it is critical to transfer insurance and ownership as soon as possible. Read along to know more.
Table of Contents
- Consequences of Not Transferring Used Bike Insurance
- Take Away
Failure to insure your motorcycle can have a financial impact if it is involved in an accident is destroyed by natural or man-made disasters or is stolen. You should ensure your bike with a thorough plan to guarantee financial protection in these instances. When purchasing a secondhand motorcycle, you must transfer your motorcycle insurance policy to ensure coverage continuity. Continue reading to see why moving your two-wheeler insurance policy to your name is so important.
Consequences of Not Transferring Used Bike Insurance
You may have purchased the bike with a loan or with your savings. You may have haggled for the best bike at the best price. Similarly, you must guarantee that the insurance is transferred to your name so that your two-wheeler is adequately covered by the Comprehensive Bike Insurance Policy. Here are a few reasons why you should move your bike insurance to your name:
Bike Insurance Coverage That Isn't Valid
Riding the bike with insurance in the name of the previous owner would only result in the insurance company rejecting your claims. Because the bike owner and the insured are not the same people, your claims will be denied.
Claim Rejection Due to Ignorance
If you don't transfer the insurance to your name, you risk having your claims denied if the bike is stolen or damaged in an accident. If you're intending to buy a used bike or already have one, make sure to transfer the insurance to your name as soon as possible to prevent any financial or legal complications.
Can Cause Issues for the Previous Owner
If the prior owner does not assume possession of the bike and transfer the insurance to the new owner, the previous owner will be held accountable for potential legal issues. It is critical for a seller to transfer the insurance to the new owner as soon as the bike is sold.
Third-party obligations, in addition to your bike's liabilities, might have an influence on your finances. Any claims submitted against the policy for unintentional damage to third-party life or property, as well as to your bike, will be denied if your used bike insurance is invalid.
Riding a bike without insurance is a violation of traffic laws. If you ride a vehicle without proper motor insurance in India, you must pay the appropriate penalty.
If you Ride with no Insurance, you might Face Jail Time
The traffic police can punish you and/or jail you if you are caught riding a two-wheeler without legal bike insurance.
You are Unable to Submit a Claim
Because you are not the policyholder, you are unable to file a claim on the policy as the owner of the bike.
Issues of Law
To ride a used or new bike on public roads, it must be covered at the very least with a Third-Party Bike Insurance Policy, as required by law. Failure to insure your motorcycle might result in legal problems if a third party is involved in an unfortunate accident.
Whether you're buying a new or used bike, you'll need to insure it with a comprehensive policy that covers both third-party liabilities and Own Damage. When you choose the Comprehensive Bike Insurance Policy, you get coverage for things like accidental damage, fire, theft, rioting, and third-party liability. By ensuring your bike, you can rest certain that you are well-protected financially in the event of an accident.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.