Selling your two-wheeler: The importance of having a valid insurance policy

Planning to sell your two-wheeler? Whether it is because you are buying a new vehicle, you are moving to a new place or you are going through a financial crunch, as a bike owner, you need to have valid insurance when planning to sell your two-wheeler. If you have a Zurich Kotak Bike insurance policy or any other policy, selling a bike with a valid insurance policy is crucial for multiple reasons. Read on to understand in detail.

Importance of valid insurance when selling a motorcycle

Having a two-wheeler insurance policy is mandated for every motorised bike. Failing to maintain a valid insurance policy can result in legal penalties or fines. So, whether you are buying or selling it is important to know that a valid insurance policy safeguards both the seller and the buyer. Let us see how:

1. Importance for the seller
   

   As a bike owner, it is your responsibility to ensure a smooth transfer of the bike and the related document. You need to understand that selling a two-wheeler includes the transfer of vehicle ownership as well. So, when you sell the bike, you typically also need to transfer the following:

   • Transfer the ownership will need the following documents

     • RC (Registration Certificate)

     • PUC (Pollution Under Control) Certificate

     • NOC (No Objection Certificate)

     • Valid insurance policy.
       

   • Problems that may arise for the seller
     In case you fail to transfer the policy to the new buyer, it can mean legal trouble for you as well. Apart from this, without a valid insurance policy, you may not find it easy to get good buyers for your price. The buyer may even try to bring down the value of your bike because of the absence of the policy.
     
     Note: Within 2 weeks of the transaction, you need to transfer the policy along with the sale deed and other papers as deemed by the local RTO.
     

2. Importance for the buyer

   
   A person who is going to spend his hard-earned money may not want to buy a bike that’s without bike insurance, as it can pose the following problems:

   • Claim rejection
     If you do not transfer the insurance policy, the buyer will face problems in case a claim is to be raised. In case the bike has been sold but insurance is not yet transferred, then the buyer would not be able to make a claim in case of any damage to the bike. As a buyer of a second-hand or pre-owned bike, they would not want to buy a bike that does not have proper coverage.

   • Liable for fine
     Not having a valid policy can put the new buyer in trouble. It can be a ₹2,000 fine and/ or 3-month imprisonment.
     

Conclusion

If you are planning to buy a bike, whether it is new or pre-owned, you need to provide it with the right coverage. With Zurich Kotak Bike insurance, you can explore the various types of two-wheeler insurance plans and choose a policy that is most suited to your insurance needs and budget too.

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