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Bike Insurance

"Protect Your Ride: Buy Bike Insurance Policy and Get Secured"

What Is Bike Insurance?

Bike insurance, also known as two-wheeler insurance, is a type of insurance policy that provides financial aid to you against the losses incurred to your bike & third-party property/life due to unforeseen events like accidents, natural & man-made disasters, fire, loss, etc. It is mandatory for all bike owners to have at least a third-party bike insurance policy in India. There are three kinds of two-wheeler insurance plans available in the market namely third-party bike insurance, standalone own-damage (OD) insurance, and comprehensive cover for bikes. These insurance covers are distinguished on the basis of the benefits they offer. The cost of this insurance differs based on the factors like model, brand name, year of registration, add-on covers, city of registration, the insurance provider, etc. It is advisable for you to carefully consider your insurance needs & select a policy that provides adequate coverage to protect you & your hard earned money in case of accidents or any other unfortunate events.

Types of Two Wheeler Insurance

Comprehensive Bike Insurance

This is the most preferred type of two-wheeler insurance in India. As the name suggests, it covers both third-party damages & the damages to your own bike. This policy protects your bike against damages it sustains due to an accident, fire, theft, man-made disasters, natural calamities, self-ignition, explosion, and so on. You can also enhance its coverage by paying an additional amount to purchase add-on covers like zero depreciation cover, roadside assistance cover, engine cover, etc.

Third Party Bike Insurance

It is compulsory for bike riders to have a third-party two-wheeler insurance plan for their two-wheelers. It is also known as liability-only policy which covers physical injuries, temporary or permanent disability, and death of the third party person due to an accident or a mishap. This motorcycle or scooter insurance policy also covers the property damage expenses sustained by the third party up to Rs. 1 Lakh, but does not cover damages to your own bike.

Own-Damage Bike Insurance

The standalone own-damage two-wheeler insurance policy gives coverage for the damages sustained by the insured bike due to an accident, theft, fire, natural disaster and man-made calamity. A standalone own-damage policy provides flexibility to policyholders for choosing an insurance company of their choice. The policyholders can buy a third-party policy and own-damage policy either from the same insurer or a different one. An insured individual can expand the coverage of a own-damage insurance policy by buying add-on covers.

​Third party insurance vs comprehensive bike insurance



Legal mandate

Coverage offered


Bike insurance add ons


Comprehensive bike insurance

As the name suggests, coverage offered under this type of insurance is comprehensive, covering both third party as well as own damage liablities

This type of insurance is not a mandatory requirement as per the Motor Vehicles Act, 1988

Covers damages caused to the bike due to theft, natural and man made calamities.

Compared to third party insurance, comprehensive two wheeler insurance is expensive as the covered offered is wide

Coverage can be enhanced by opting for various bike insurance add-ons such as zero depreciation cover, engine protection, key assistance, etc

Does not provide coverage for damages caused when driving under influence of alcohol, racing, regular wear and tear, etc.

Third party bike insurance

This is a basic two wheeler insurance cover that provides coverage against legal and financial liabilities arising out of third-party damages.

Buying third party bike insurance is mandatory as per the law

Does not provide coverage for damages caused to your bike, but only covers damages, death or bodily injury caused to third party or property

Insurance premium for third party is decided by IRDA and is affordable in comparison to comprehensive bike insurance cover

Add-ons cannot be purchased with this type of insurance

Does not provide coverage for damages caused to your own bike

Tips to reduce bike insurance premium

There are a number of smart ways in which the premium of your bike insurance plan can be effectively reduced. To help you out, we have also enlisted some of the best ways in which you can reduce premium:

  • NCB: No Claim Bonus or NCB in two-wheeler insurance refers to the discounts given to the policyholder if they do not raise a claim in a given year. So, try to keep your No Claim Bonus benefit intact to save on your bike insurance premium. With No Claim Bonus, you can get a discount of up to 50% on your two-wheeler insurance premium.

  • Avoid Raising Small Claims: To keep your NCB intact, you should avoid raising small bike insurance claims. For instance, if there is a minor damage to your bike, then do not file for a claim. In such a case and instead spend the required amount from your own pocket. This will help you in saving bike insurance premium.

  • Opt For Higher Deductibles: Another way in which you can reduce two-wheeler insurance premiums is to opt for a higher deductible. With a higher voluntary deductible in your plan, the bike insurance premium will be lowered. The premium in such cases will be lower because the liability of the insurer in such cases will be lower.

  • Install Anti-theft Devices: By installing safety devices like an anti-lock system, anti-theft device, and more, the bike will be at a lower risk of getting stolen or lost. Thus, with reduced risks, the insurer will be at a reduced liability. Thus, all of this contributes towards lowering the insurance premium.

  • Check Insurance Premium Before Buying: You should also check the premium before buying it. Doing it right at the time of buying helps in analysing the insurance premium and accordingly customising the policy on the basis of your budget.

  • Avoid Modifications: Doing unnecessary modifications in your bike such as changing its colour, and more alters the insurance premium. The bike insurance premium in this case goes up because the Insured Declared Value or IDV gets affected in this case and generally goes up.

  • Choose the Right Coverage: When you are buying an insurance policy, it is very important to decide the adequate coverage you require. If you fail to identify what is coverage you need for your bike insurance policy, you may not just end up buying an incorrect insurance policy but also pay an extra premium amount. So, be wise while you are choosing your two-wheeler insurance coverage.

  • Renew Insurance On Time: Your vehicle insurance should be renewed on time so that you do not pay extra money in case of a lapsed policy. If you renew your bike insurance policy on time, then there are many insurers who offer discounts. So, save on your insurance premium by renewing your bike insurance policy on time.

Benefits of Buying A Two Wheeler Insurance Policy

Two-wheeler insurance is not just an option anymore, it stands as a protection for your two-wheeler. It ensures comprehensive protection by offering a safety net in the face of unfortunate events and circumstances. Thus, when it comes to securing your bike against unforeseen losses resulting from accidents, a bike insurance policy is your most reliable option. To ensure you make the right decision and select the ideal coverage for your two-wheeler, here are some key benefits you should consider while purchasing your insurance policy.

1. Financial Protection:

Bike insurance plays a vital role in safeguarding you against the uncertainties that come with riding on the road. Accidents, damages, and losses can be financially devastating, but with the right insurance, you can enjoy peace of mind knowing that you are protected. This comprehensive coverage not only takes care of the repair costs for your bike but also covers any liabilities you might have towards third parties involved in an accident.

2. Roadside Assistance:

One of the biggest nightmares for a vehicle owner is to be strangled on the road with no support incase of their vehicle breakdown. Having the right insurance helps you avail the benefit of 24*7 roadside assistance incase of a flat tire, battery issues, emergency fuel assist, lost key assistance, minor repairs etc. Whether it's a flat tire, battery issues, or any other breakdown, roadside assistance ensures you get timely help and support.

3. Personal Accident Cover:

Bike insurance includes a personal accident cover that provides compensation in case of accidental injuries or death to the insured rider. This mandatory two-wheeler cover gives a protection of up to Rs. 15 Lakhs ensuring you or your family receive financial assistance during the challenging times. The policyholder can also choose to buy personal accident cover for co-passengers by paying an extra premium.

4. Natural & Man-Made Calamity Coverage:

Bike insurance provides extensive coverage, not only protecting against accidents but also extending to damages caused by natural disasters like floods, earthquakes, and cyclones. With such comprehensive protection, you can have peace of mind even during unforeseen calamities. Moreover, it covers losses arising from man-made events like riots and vandalism, ensuring that you are financially secure in various challenging situations. This all-encompassing coverage gives you the confidence to hit the road with reassurance, knowing that your bike and finances are protected against a wide range of risks. With bike insurance, you can enjoy your rides without worrying about the uncertainties life may throw your way.

5. Third-Party Coverage:

Third-party coverage, also known as ‘act-only’ insurance, is mandatory by law and ensures that you are protected against legal obligations, medical bills, repair of vehicle or any similar liabilities arising from injuries or damages caused to a third party due to an accident involving your bike. As per the Motor Vehicle Act 1988, not having an active third-party insurance can cause the registered owner of the vehicle serious penalties and fines.

6. Comply With The Law:

Having valid bike insurance is not only crucial for your financial security but also a legal mandate in India. It serves as a safety net, protecting you from unexpected financial burdens in case of accidents or damages. Beyond the financial aspect, it is essential to comply with the law to avoid penalties. In case you do not have a policy, you will be fined or can be even imprisoned. Thus, it is very important that you have at least a third-party bike insurance to stay protected against legal repercussions.

7. Coverage Of Parts for Repair:

Two-wheeler insurance is a valuable investment that provides coverage for repairing or replacing damaged bike parts. By having

so, you can avoid substantial out-of-pocket expenses that might otherwise be required for repairs. This financial protection ensures that you can get your bike back on the road without worrying about the financial burden of unexpected damages. With bike insurance in place, you can enjoy the freedom of riding while knowing that your bike is safeguarded against potential repairs costs.

8. Coverage For Theft:

Bike theft is an unfortunate reality that many bike owners face, making bike insurance a crucial necessity. By opting for insurance, you can secure coverage against theft incidents. In the unfortunate event of your bike getting stolen, the insurance will provide you with compensation, reducing the financial impact of the loss.

9. Coverage For Accidental Injuries:

In addition to the personal accident cover, insurance provides comprehensive protection by also including coverage for injuries sustained by the pillion rider in the event of an accident. This ensures that not only the policyholder but also their passenger is also protected financially in case of any unfortunate mishap. By having this extended coverage, bike insurance offers a more holistic approach, addressing the safety and well-being of both the rider and their pillion, making it a wise choice for responsible bike owners.

10. Add-on Covers:

Add-on covers are a valuable feature in bike insurance that empowers policyholders to personalize their insurance policies based on individual needs. These optional extras go beyond the standard coverage, offering specialized protection and benefits that align with specific requirements. Whether it's adding coverage for accessories, zero depreciation, or roadside assistance, these add-ons allow you to enhance your policy to suit your unique needs. By opting for add-on covers, you can tailor your insurance plan to provide a more comprehensive and tailored level of protection for your bike and your peace of mind.

11. Easy No Claim Bonus (NCB) Transfer:

Maintaining a claim-free record with your bike insurance entitles you to a No Claim Bonus (NCB), which offers the benefit of a discounted premium during policy renewal. This incentive encourages safe and responsible driving, rewarding policyholders for their cautious behavior on the road. Additionally, one of the advantages of NCB is its portability - you can easily transfer the accumulated NCB to a new insurer when switching insurance providers. This ensures that you can continue enjoying the benefits of your earned NCB and receive cost savings on your premium, regardless of the insurer you choose.


12. Cashless Garages:

Bike insurance policies offer a valuable network of cashless garages, providing policyholders with a seamless repair experience. With the availability of cashless garages, it becomes easier for policyholders to get their two-wheeler repaired without spending anything from their pocket. The greater the number of cashless garages, the easier it becomes for policyholders to get their vehicle repaired. With the availability of cashless garages, bike insurance becomes a practical and beneficial choice, providing you with peace of mind and the assurance of prompt and efficient repairs when you need them most.

Factors to Consider While Buying Bike Insurance

Buying bike insurance can become a challenging task if you are not aware of the different things that can help you in buying it. To help you out, we have enumerated some of the factors that you need to keep in mind when buying a two-wheeler insurance plan:

  • Types:

    When buying a bike insurance plan, it is very important that you know about its different types. On checking the different types such as comprehensive, third-party, and own-damage two-wheeler insurance plans, it becomes easier to understand the best-suited plan for yourself. You should also check the coverage along with the exclusions offered under the different types. This is because based on the coverage the premium will accordingly vary. For instance, the premium of a third-party bike insurance will be much less than a comprehensive bike insurance. A comprehensive plan on the other hand provides way more coverage than a third-party, hence its premium will be higher.

  • Add-ons:

    There are a number of add-ons available that you can include in your plan. The different add-ons that you can include in your plan are zero depreciation cover, no claim bonus cover, and so many more. However, remember that when you add these add-ons to your plan, the premium rate increases.

  • Cashless Garages:

    Cashless garages are those where policyholders can get cashless repair facilities for their insured two-wheelers. When it comes to the cashless process, the availability of cashless garages becomes very important. Thus, while buying a plan, it becomes crucial to check whether the insurance company you are choosing has tie-ups with numerous cashless garages or not. The more the number of cashless garages, the easier it is to get your claims settled in a cashless manner, so always choose a company with a higher number of cashless garages.

  • Renewal Process:

    Every bike insurance plan comes with an expiry date. So, before choosing your insurer, you must be aware of the renewal process. You should choose an insurer that offers a hassle-free and quick renewal process. There are a number of insurance companies that also offer discounts when you renew your plan, so you should also check about the renewal discounts at the time of buying a two-wheeler insurance plan.

  • Two-wheeler Insurance Premium:

    Checking the bike insurance premium is an important factor when you are buying an insurance. As the premium rates vary from one insurer to another, you must check the premium while buying the plan itself. You can use a bike insurance premium calculator to analyse the premium rates. Doing so will help you understand the premium you need to pay towards buying your chosen plan. Typically, the bike insurance premium of a comprehensive plan is higher as compared to other plans.

  • Customer Support:

    On buying a two-wheeler insurance plan, you should also be aware of customer support. Ideally, you should choose an insurer that offers 24*7 customer support. By choosing an insurer that offers seamless customer service, you will be able to get all your queries resolved in a very hassle-free manner.

  • Claim Settlement Process:

    Claim settlement in bike insurance refers to the insurer’s efficiency in settling the claims. The claims can be settled through either a cashless or reimbursement process. When you choose an insurer with a high claim settlement ratio, then your claims will be settled efficiently and in a hassle-free manner. So, always choose a company that has a higher claim settlement ratio.

Add-ons Available in Two-wheeler Insurance Plan

There are a number of add-ons that you can include in your plan such as zero depreciation add-on, no claim bonus cover, and many more. Scroll down to learn more about these add-ons:

  • Zero Depreciation Cover:

    Zero depreciation add-on in helpful in getting the depreciation rates waived off when you raise a claim. This means that when you have a zero depreciation cover and you raise a claim, then you will get complete reimbursement despite of the depreciation costs. The premium may increase when you have zero depreciation cover, however, you will get complete protection with this cover.

  • Return To Invoice Cover:

    Return To Invoice cover is an add-on option in two-wheeler insurance that ensures policyholders receive complete compensation in case their bike is lost or stolen. With Return to Invoice add-on, car owners can get rid of the financial losses that may arise due to depreciation when claiming insurance after a significant loss event.

  • No Claim Bonus:

    NCB or No Claim Bonus cover protects the policyholder's earned No Claim Bonus even after making a claim. During the time of policy renewal, policyholders thus get discounts even if claim has been raised. It is thus helpful in getting lower premiums, however, you will have to pay additional money for buying this cover.

  • Engine Protection Cover:

    Engine Protection Cover safeguards the engine of the insured bike. It provides financial protection for repair or replacement costs due to damage caused by water ingression, hydrostatic lock, and oil leakage which is generally not covered in other policies. This type of add-on is helpful in minimising the policyholder's out-of-pocket expenses and offering them added peace of mind.

  • Roadside Assistance Cover:

    The Roadside Assistance provides assistance if your bike is stranded on road due to breakdowns, flat tires, fuel run-outs, or other issues. With this cover, you get services such as towing, fuel delivery, and more, ensuring policyholders get timely assistance in case of roadside emergencies.

  • Consumables Cover:

    Consumables cover is another add-on that reimburses the cost of consumable like engine oil, coolant, brake fluid, lubricants, and more. It ensures policyholders get financial assistance for these consumables, thus reducing out-of-pocket expenses and providing comprehensive coverage for repairs after an accident or damage.

  • Tyre Protection Cover:

    Tyre Protection Cover provides coverage if there is any damage to the two-wheeler’s tyres. With this add-on, you get financial compensation if the insured bike’s tyre gets punctured, bursts out, or suffers any other damage.

  • Key Replacement Cover:

    This cover provides protection if your bike keys are lost, stolen, damaged or misplaced. It covers the cost of replacing or repairing the keys. Thus, with this cover policyholders get coverage for the expense of replacing keys.

Types Of Bike Insurance

Comprehensive Bike Insurance

Comprehensive bike insurance is one of those types of policy that provides complete protection to your bike against unforeseen circumstances. Whether your two-wheeler gets damaged due to any accidents or causes damage to a third party, then the same is covered under the third-party two-wheeler policy.


Key Features of Comprehensive Two-wheeler Insurance:

  • Be it accidents, fire, theft, natural calamities, man-made disasters, self-ignition, explosion, or anything else, comprehensive two-wheeler insurance provides the relevant coverage.

  • Any damage to the bike due to an accident is also covered under comprehensive bike insurance.

  • You can include a number of add-ons such as zero depreciation cover, no claim bonus cover, key loss cover, and many more. With these add-ons, you can get additional coverage for your bike.

  • Depending on your budget, you can customise your comprehensive two-wheeler policy accordingly.


Third-party Bike Insurance

Third-party two-wheeler insurance is a contract between the policyholder and the insurance company which states to provide coverage for any kind of third-party damages. As per the Motor Vehicles Act of 1988, third-party bike insurance is a must-have for all two-wheeler owners.


Key Features of Third-party Bike Insurance

  • Third-party bike insurance offers financial coverage in case a third-party is damaged due to the insured bike

  • Along with bodily injuries, third-party two-wheeler insurance also provides coverage if a third-party property is damaged

  • This type of insurance policy does not provide coverage if there is any damage to the insured bike

  • A third-party bike insurance is a must-have according to Motor Vehicles Act. So, to comply with legal requirements, you must have a third-party policy

  • It is an affordable type of two-wheeler policy as compared to the other types.

  • In addition to a third-party bike insurance policy, you can also buy other types of policy to get a greater coverage


Own-damage Bike Insurance

A standalone or own-damage bike insurance provides coverage if there is any kind of damage to the insured bike due to an unfortunate event.


Key Features of Own-damage Bike Insurance

  • If there is any damage to the bike due to an accident, theft, natural disaster, or any other unfortunate event, then the relevant coverage is offered

  • You can customise the existing bike insurance policy by including a number of add-ons to the plan

  • Along with this type of insurance plan, you can also buy third-party two-wheeler insurance and comprehensive bike insurance. When you combine third-party policy with other types of plans, its coverage gets enhanced even more

How to Choose Two Wheeler Insurance Policy?

With so many insurance companies offering two-wheeler insurance plans, it often becomes difficult to choose the right one. In order to select the best two-wheeler insurance plan, you need to consider a number of things. Listed below are some of the factors you need to consider while buying bike insurance:


1. Know Your Coverage Requirements - Assess your requirements and budget so that you can choose between different types of two wheeler insurance plans that suit you the best. When assessing your requirements, you must consider different factors such as usage of your two wheeler, your expenditure, liabilities, etc.


2. Choose Add-ons Wisely - Add-on covers help you to enhance the coverage of your two wheeler insurance policy. You can opt for an add-on cover for your two wheeler insurance policy in exchange of extra premium. Common add-on covers in two wheeler insurance are zero depreciation cover, personal accident cover for pillion riders, and towing cover.


3. Choose a Reliable Insurance Company - Checking the claim settlement ratio is of utmost importance when choosing a trustworthy two wheeler insurance company online. It ensures that the claim settlement is hassle-free.


4. Compare Two Wheeler Insurance Plans Online - It is important to compare different two wheeler insurance policies online in order to make the best buying decision. You can compare different plans on the basis of inclusions, exclusions, premiums, etc.


5. Read Online Reviews - It is important that you read online reviews posted by different customers. This will help you in choosing the right two-wheeler insurance policy. You must read positive as well as negative comments online so that you can decide what is best for you.

Importance of bike insurance/ Why do you need two wheeler insurance?

Having a two wheeler insurance policy can help you in different situations, thus ensuring that you don’t have to pay for any legal or financial liabilities out of your pocket. Apart from this, two wheeler insurance can be beneficial in the below ways.


Abide with the law

Buying third party insurance cover is mandatory as per the law. Every bike plying on Indian roads has to have a valid third party cover. Not buying this type of cover attracts a penalty up to Rs. 2,000 or even imprisonment in some cases. It is vital to buy or renew bike insurance on time to ensure you comply with the law.


Coverage against financial loss

Damages caused to your bike due to natural or man made calamities or any unforeseen accident can increase your financial burden. Thus, with comprehensive insurance cover you can stay protected against financial obligations.


Coverage against man made and natural disasters

In the event of a natural or man made disaster such as flood, cyclone, storm, fire, terrorism, etc. bike insurance can be of great help as it offers you coverage against damages caused due to such disasters.


Coverage for bike theft

In case your bike is stolen then an insurance policy will compensate you as per the policy terms and conditions. To claim for bike theft, obtaining a non traceable certificate from the police is mandatory.


Personal accident cover

Buying personal accident cover which protects the owner/driver against death, disability or bodily injury is mandatory. As per the law, it is compulsory for every bike owner to get personal accident cover up to Rs. 15 lakh.

What is Covered Under Bike Insurance?

The coverage offered under a bike insurance plan may vary depending on the type of policy and the insurance provider, but generally, it can include the following components. Scroll through the section below to know all about the coverage offered under bike insurance plans:

  • Third-party liability coverage: This is a mandatory coverage in India as mandated by Motor Vehicles Act of 1988. A third-party bike insurance protects you against legal liabilities arising from injuries or property damage caused to third parties (other people or their property) due to an accident involving your bike.

  • Own-damage Coverage: Own-damage covers the damages to your bike caused by accidents, theft, fire, vandalism, natural disasters, etc. It is typically optional but recommended for comprehensive protection. The premium of this type of cover is generally lower than the other types.

  • Personal Accident Cover: This component provides coverage for bodily injuries or accidental death sustained by the bike's owner or rider while using the insured motorcycle. It is mandatory to buy Personal Accident Cover to stay protected against unforeseen circumstances.

  • Theft coverage: This protects you against financial losses in case your bike is stolen and not found later.

  • Fire and Natural Disaster Coverage: This covers damages to your bike resulting from fire, lightning, earthquakes, floods, storms, etc. Thus, if there is any damage to your bike due to any natural disaster, then the relevant coverage will be offered under your plan.

  • Optional/add-on coverages: Insurance providers may offer additional optional coverages, also known as add-ons or riders, that can be purchased for enhanced protection. Some of the add-ons that you can include are zero depreciation cover, roadside assistance, engine protection, consumables cover, etc.

What is Not Covered Under Bike Insurance?

It is as important to check the exclusions of your bike insurance plan, as it its inclusions. Some of the exclusions in your bike insurance plan:

  • Regular wear and tear: Electrical breakdowns are often considered as part of regular maintenance and wear and tear, which are the responsibility of the vehicle owner. Thus, bike insurance typically does not cover damages resulting from regular wear and tear or mechanical breakdowns.

  • Consequential damages: Damages or losses that are a consequence of an event but are not directly caused by it may not be covered. For instance, if there is a mechanical failure during a natural disaster, and the policyholder still tries to start the bike, then such things will not be covered.

  • Intentional acts: If there is any damage to the bike intentionally, then the same will not be covered under a two-wheeler insurance policy.

  • Riding without a valid license: If there is any damage to the bike and the rider is found without a valid driving license, then the insurance company will not provide any coverage.

  • Driving under the influence of drugs: Any damage to the insured bike will not be covered if the rider is found driving under the influence of alcohol or drugs. This is because this indicates driver's irresponsibility, and thus there is no coverage offered in this case.

  • Involvement in Adventure Activities: Most policies exclude coverage for damages incurred while participating in racing, stunts, or any unauthorized activities.

  • Using the Bike for Commercial Purposes: If the bike is insured under a personal policy but is used for commercial purposes, any damages or accidents during such use may not be covered.

  • Depreciation: In case of claim settlements, the depreciation value of the bike and its parts may not be fully covered. However, if you have a zero depreciation cover, then this type of coverage amount will also be covered.

  • Nuclear Radiation and War-related Damages: Damages caused by nuclear radiation or acts of war are typically excluded in an insurance plan.

  • Non-compliance with policy terms: If the policyholder fails to comply with the terms and conditions of the policy, such as not disclosing relevant information or not paying premiums on time, the insurance company may deny coverage.

KYC Documents Required to Buy Bike Insurance

KYC or what is known as the Know Your Customer process is where the customer validates their information by submitting several documents. These documents are required to be submitted during the time of issuance of the policy.

Some of the documents required to buy a bike insurance policy are:

1. Identity Proof - Aadhaar card, Voter ID card, Driving license, PAN card, Passport, Ration card

2. Address Proof - Rental agreement paper, Voter ID, Electricity bills, Bank account statement, Phone/gas bills, Passport

Factors That Affect Bike Insurance Premium For Two Wheelers

In bike insurance, premium refers to the total amount that a policyholder needs to pay to get the relevant coverage. The bike insurance premium is affected by a number of factors, such as those listed below:

  • Type of Coverage: In India, you have choices between third-party bike insurance, standalone own-damage insurance, and comprehensive bike insurance. While the premiums vary among these options, it's essential to note that a comprehensive policy offers more extensive coverage, although it might come with a higher premium. Opting for comprehensive coverage is recommended for its broader benefits. You should never buy a policy just because it is affordable but instead choose on the basis of the coverage.

  • Cubic Capacity: When an insurance company is giving bike insurance policy, it checks its cubic capacity in determing the bike insurance premium. The higher the cubic capacity of the bike, the higher will be the bike insurance premium.

  • Geographical Location: The geographical location of the bike affects the bike insurance premium largely. In areas that are at a lower risk of risks and low-traffic, then the bike insurance premium in such case will be lower.

  • Type of Two-Wheeler & Its Price: The price of your two-wheeler like motorcycle or scooter directly impacts your insurance premium. Insurers consider factors such as the CC (cubic capacity), with higher-capacity engines leading to higher premiums. This reflects the potential risks associated with more powerful machines.

  • Modifications of Two-Wheeler: There are bike enthusiasts who often modify their bikes for enhanced aesthetics or performance. However, be aware that modifications can impact your premium. If you wish to cover these modifications, your premium will likely be higher. You should also inform the insurer about these modifications to avoid claim rejection.

  • Age of the Vehicle: The age of the vehicle indirectly affects the bike insurance premium. This means that the older the vehicle, the lower the bike insurance premium will be.

  • Make and Model: Another factor that affects bike insurance premium is the make and model of your bike insurance plan. For high-end two-wheelers, the bike insurance premium is higher. This is because the IDV for such high-end bikes will be higher and so will be the bike insurance premium.

  • IDV: IDV or the Insured Declared Value in bike insurance refers to the current market price of the bike. Since IDV is like the sum insured of the bike, it affects the bike insurance premium. It is important to note that the IDV is directly proportional to bike insurance premium, and so the higher it is, the higher will be its premium.

  • Add-On Covers: Bike insurance add-on covers provide supplementary protection, but they come at an additional cost. While not mandatory, these covers, such as zero depreciation, return to invoice, and roadside assistance, enhance your overall coverage. The higher premium associated with add-ons reflects the extended benefits they offer.

  • Anti-Theft Devices: Installing ARAI-approved anti-theft devices on your bike not only safeguards your vehicle but also reduces the insurer's liability. As a result, you'll likely pay a lower premium. With these devices installed in your bike, you can eventually end up in paying lower bike insurance premiums.

  • Voluntary Deductibles: Two types of excess, compulsory and voluntary, impact your premium. With compulsory excess, you pay a fixed percentage of repair costs, while voluntary excess allows customization during policy purchase. Opting for voluntary excess can reduce your premium since it signifies a lower potential claim payout for the insurer.

  • No Claim Bonus (NCB): Renewing your policy without making any claims results in a No Claim Bonus. This bonus, ranging from 20% to 50% over five years, significantly reduces your insurance premium. Maintaining a claims-free record can lead to substantial savings on your premiums.

Important Terms To Know in Bike Insurance

Here are some of the terms that you should know about in bike insurance:

Insured Declared Value (IDV)

IDV represents the current market value of the insured vehicle. It is calculated based on the manufacturer's listed selling price and the depreciation rate of the vehicle. Over time, a vehicle's value depreciates due to wear and tear, age, and other factors, which leads to a decrease in its market value.

For instance, when you buy a bike or a car, its initial market value is considered as the IDV. However, as the vehicle ages, its IDV reduces year by year due to depreciation. As a result, the insurance company will offer a lower claim amount if your vehicle is stolen or deemed a total loss in an accident.

It is crucial to set the IDV at a reasonable value while purchasing insurance. A higher IDV might seem beneficial as it promises a higher claim amount in case of total loss, but it also leads to a higher premium. Conversely, setting a very low IDV may result in inadequate coverage and compensation during a claim.

Insurance companies usually provide a predefined percentage of depreciation for various vehicle parts based on their age. Therefore, it is essential to understand the IDV calculation method and choose the appropriate value that offers adequate coverage for your vehicle while ensuring a reasonable premium. Regularly re-evaluating the IDV while renewing the policy is advisable to ensure the coverage remains appropriate as the vehicle depreciates over time.

How IDV works:

1. Calculation: The insurance company calculates the IDV based on the current market value of the insured vehicle. It is arrived at by considering the manufacturer's listed selling price of the vehicle and adjusting it for depreciation based on the vehicle's age and condition.

2. Depreciation: As a vehicle ages, its value decreases due to wear and tear and other factors. The IDV takes this depreciation into account, and the value is lower for older vehicles compared to newer ones.

3. Insurance Premium: The IDV has a direct impact on the insurance premium amount. Generally, the higher the IDV, the higher the premium, and vice versa. It is because a higher IDV implies a greater coverage amount and a higher potential payout for the insurance company in case of a total loss or theft.

4. Claim Settlement: In the event of a total loss or theft of the insured vehicle, the insurance company will settle the claim based on the IDV. The policyholder will be reimbursed up to the IDV amount, minus any applicable deductibles or policy exclusions.

5. Importance of Accurate IDV: It is crucial for the policyholder to ensure that the IDV mentioned in the policy accurately reflects the vehicle's current market value. If the IDV is set too low, the policyholder might not receive adequate compensation in case of a claim. On the other hand, an excessively high IDV might lead to higher insurance premiums than necessary.

6. Annual Depreciation: The IDV of a vehicle decreases each year at the time of policy renewal due to depreciation. Insurance companies follow a standard depreciation schedule based on the vehicle's age. However, some insurers offer a special IDV protection add-on, which maintains a higher IDV even after the vehicle ages, ensuring better compensation during claims.

It's important for vehicle owners to review and understand the IDV specified in their motor insurance policy. If the IDV seems inaccurate or insufficient, they should discuss it with their insurance provider to ensure they have appropriate coverage in case of an unfortunate event. Regularly updating the IDV to reflect the vehicle's current market value helps in getting the most out of the insurance policy and ensures adequate protection for the insured vehicle.

No Claim Bonus (NCB)

No Claim Bonus (NCB) is a discount offered by insurance companies to policyholders who have not made any claims during the policy term. It serves as a reward for safe and responsible driving, encouraging policyholders to maintain a claim-free record.

How No Claim Bonus works:

1. Claim-Free Period: When a policyholder does not make any claims against their insurance policy during a specific policy period (usually one year), they become eligible for No Claim Bonus.

2. Bonus Accumulation: With each claim-free year, the policyholder accumulates a No Claim Bonus. The bonus amount increases progressively for each consecutive year of claim-free driving.

3. Percentage-Based: The No Claim Bonus is calculated as a percentage of the own damage premium component of the insurance policy. The exact percentage varies between insurance companies but typically starts at 20% for the first claim-free year and can go up to 50% or even more for several consecutive claim-free years.

4. Transfer and Retention: No Claim Bonus is usually transferable when the policyholder switches to a different insurer. If they decide to change their vehicle, they can also transfer the accumulated NCB to the new vehicle's insurance policy. In some cases, policyholders can also retain a portion of the NCB even after making a claim (known as the NCB retention benefit).

5. Impact on Premium: No Claim Bonus can significantly reduce the insurance premium amount. The more NCB a policyholder has accumulated, the greater the discount on their premium for the next policy term.

6. NCB Protector: Some insurance companies offer an optional NCB protector add-on. With this add-on, policyholders can safeguard their NCB even if they make a claim during the policy term. This ensures that they retain their accumulated NCB discount despite an occasional claim.

Zero Depreciation

Zero Depreciation, also known as Nil Depreciation or Bumper-to-Bumper insurance, is an add-on cover offered by insurance companies for motor insurance. It provides comprehensive coverage to policyholders by waiving off the depreciation on certain parts of the insured vehicle during the claim settlement process.


How Zero Depreciation works:


1. Depreciation: When a vehicle gets damaged or requires repairs, the value of its parts decreases due to wear and tear over time. This reduction in the value of parts is known as depreciation. During the claim settlement process, the insurance company considers this depreciation while calculating the claim amount.

2. Zero Depreciation Add-On: By opting for the Zero Depreciation add-on, the policyholder can avail themselves of a significant benefit. It ensures that the insurance company does not factor in the depreciation of certain vehicle parts during a claim. As a result, the policyholder receives a higher claim amount compared to a regular insurance policy.

3. Coverage: Zero Depreciation typically covers the depreciation on parts made of fiber, rubber, plastic, and glass. These parts are more prone to wear and tear and their value diminishes rapidly over time. With Zero Depreciation, the policyholder can claim the full cost of replacing such parts without any deduction for depreciation.

4. Limitations: It's important to note that Zero Depreciation does not cover the depreciation of metallic parts and other components not listed under the policy. The coverage is usually limited to a specific number of claims during the policy term, and some insurers might have restrictions on the age of the vehicle to be eligible for this add-on.

5. Higher Premium: Since Zero Depreciation offers more comprehensive coverage and higher claim benefits, the premium for policies with this add-on is higher compared to regular insurance policies.

Zero Depreciation is highly recommended, especially for new vehicles and vehicles with expensive parts, as it provides greater financial protection in case of an accident or damage. It ensures that the policyholder can get their vehicle repaired with minimal out-of-pocket expenses, making it a popular choice among vehicle owners who prioritize comprehensive coverage and peace of mind. However, policyholders should always review the terms and conditions of the Zero Depreciation add-on with their insurance provider to understand its scope and limitations fully.


With context to two-wheeler insurance, a deductible refers to the amount that the policyholder is responsible for paying out of their pocket before the insurance company settles the remaining claim amount. It is a standard feature in various types of motor insurance policies, including comprehensive car insurance and own damage cover.

How a deductible works:

1. Incident Occurs: If the insured vehicle is involved in an accident, sustains damage, or experiences a covered event like theft or vandalism, the policyholder can file a claim with their insurance company.

2. Claim Evaluation: Upon filing the claim, the insurance company assesses the extent of damage, the cost of repairs, or the value of the loss incurred. The claim evaluation process helps determine the total claim amount.

3. Deductible Deduction: Once the claim evaluation is complete, the insurance company deducts the pre-determined deductible amount from the total claim amount. The deductible is a specific sum chosen by the policyholder at the time of purchasing the motor insurance policy.

4. Policyholder's Contribution: The policyholder is responsible for paying the deductible amount from their own funds. This payment is made to the repair facility or the party involved in providing the necessary services (e.g., repair workshop) before the insurance company proceeds with the claim settlement.

5. Insurance Company's Payment: After the policyholder pays the deductible, the insurance company covers the remaining portion of the claim up to the policy's coverage limit. The coverage limit is the maximum amount the insurance company will pay for a claim.

For example, suppose the total claim amount is INR 50,000, and the deductible chosen by the policyholder is INR 5,000. In that case, the policyholder will pay INR 5,000, and the insurance company will cover the remaining INR 45,000.

Advantages of Deductibles in Motor Insurance in India:

- Cost Control: Deductibles allow policyholders to have some control over their motor insurance costs. By selecting a higher deductible, they can often lower their insurance premiums. Conversely, a lower deductible results in higher premiums.

- Discouraging Small Claims: Deductibles encourage policyholders to avoid filing small claims. For minor damages, it might be more cost-effective for the policyholder to pay for the repairs themselves rather than involving the insurance company.

- Reducing Moral Hazard: A deductible reduces the risk of moral hazard, where the policyholder might act recklessly or negligently since the insurance company would cover all costs. Knowing they have to pay a portion of the claim amount themselves may encourage more responsible driving.

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