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5 Things to Consider When Renewing Your Two-Wheeler Insurance Policy

13 July 2022, 11:54 PM

Renewing two-wheeler insurance is one of the toughest decisions to make. This is because you can get ample reasons for not renewing your policy - inadequate policing, high insurance cost, lack of awareness, etc. Alternatively, some bike owners simply forget to renew the policy. 

However, renewing your bike insurance is both a necessity and a legal obligation. The Motor Vehicles Act of 1988 makes two-wheeler insurance mandatory for all vehicle owners driving on Indian roads. Failure to show the insurance certificate on demand may make you pay a fine of up to INR 4,000 and a jail term of three months. 

So, renewing two-wheeler insurance must be your top priority because a valid bike insurance policy offers complete peace of mind and optimal security. The following sections discuss the various benefits of renewing a bike insurance policy and the parameters you must consider. 

What are the Benefits of Renewing Your Bike Insurance Policy?

Continued Protection against Artificial or Natural Disasters

Renewing your bike insurance policy protects you against financial losses in natural disasters like floods, earthquakes, lightning, landslide, storm, self-ignition, etc, and artificial calamities like war, burglary, strike, theft, or an accident. The insurer takes care of the service, repair or replacement costs if your two-wheeler suffers any damage due to these unfortunate events. 

Drive Anywhere, Legally

Since two-wheeler insurance is mandatory as per the law, not possessing a valid insurance policy makes you a legal offender. The police may put you behind bars for three months if caught riding a bike without insurance. 

Steer Clear of Third-party Liability

Imagine your bike unintentionally crashes into someone else's vehicle or property and damages it. You do not know how much money you will need to set things straight. However, if you renew the policy before it expires, the third-party coverage will continue. It is worth noting that, in third-party bike insurance, the insurer pays for the damage inflicted on a third-party property, person, or vehicle involving your insured bike. 

Discounted Premium

Online insurance portals, such as Paytm Insurance, offer unparalleled discounts on renewing your existing bike insurance policies online. If you can't renew on the due date, you can do so within the next 90 days. If you don't renew even then, the policy will lapse and so are its benefits such as a no-claim bonus (NCB).  NCB comes as a premium discount on renewal.

Now that you know the benefits of renewing your bike insurance policy online or offline, let’s learn about the top five parameters to consider when renewing a two-wheeler insurance policy. 

5 Things to Consider When Renewing a Two-wheeler Insurance Policy

Decide the Insurance Type and Coverage Amount Before Expiry

Every time you purchase a bike insurance policy online or offline, it is treated as a new one. So, you can change the insurance type every time you buy or renew a bike insurance plan. If you only have third-party coverage, you can opt for comprehensive bike insurance on renewal.

A comprehensive insurance policy covers the life and bike of the policyholder. So, the bike owner may claim the money in the case of the permanent total, permanent partial, or temporary total disablement. Also, the policyholder’s nominee may claim the entire capital sum insured (CSI) if the policyholder dies due to an accident involving the insured two-wheeler. In contrast, a third-party insurance policy only covers the damage caused to a third party due to an accident or collision involving the insured two-wheeler. 

Besides deciding the insurance type, you must also choose the coverage amount by including the risk factor. For instance, if you ride through heavy traffic, the chances of accident or collision will be higher, so you must opt for higher coverage. However, the risk is lower if you travel primarily on the highways. It is wise to note that the coverage amount affects the premium. The higher the coverage amount, the higher remains the premium and vice versa. 

Check the NCB 

The NCB refers to the special premium discount insurers offer to policyholders for not claiming two wheeler insurance policy. It kicks in after the first year of the bike insurance policy. So, since you are renewing your policy after the first year, you will definitely get a 20% NCB. 

While the minimum NCB is 20%, the maximum is 50%. The NCB increases after every claim-free year. So, before renewing your policy, check whether your insurer is providing you with the best NCB.

Provide Correct Information

Whether you renew the bike insurance policy online or offline, providing the correct information in the application form is imperative. Similarly, the insurer must state all terms and conditions in the policy document or brochure. Ensure to read the details carefully and bring any discrepancy to the insurer's notice. There have been cases of claim rejections because of incorrect information in the application form. So, keep a close eye on the policy terms and sign only after going through the document. 

Decide the Insured Declared Value (IDV)

The IDV in two wheeler insurance determines the amount the policyholder can get from the insurer if their bike faces an accident. The IDV is subject to depreciation, which means the value decreases as the bike gets older. It is the real value of the motorcycle based on which the CSI and the premium get calculated. `

Almost all insurers listed on Paytm Insurance allow the bike owner to change the IDV to a certain limit. Hence, consider increasing your IDV to the permitted limit if you want higher coverage. However, be prepared to shell out a bit extra because a higher IDV will also increase the net premium. 

Consider Add-on Covers 

Add-ons enhance the benefits you can get from a bike insurance policy. While some add-ons cover hospitalisation, others waive depreciation, provide NCB protection, or 24x7 roadside assistance. 

Like the IDV, other bike insurance add-on covers also increase the premium slightly. However, considering the immense benefits of such covers, it makes sense to include them in your two-wheeler insurance policy. 


Now that you know the best tips to renew your two-wheeler insurance policy, implement them when the time comes. An active bike insurance policy increases your peace of mind and enables you to drive tension-free.

Also read - 


1. How can I renew my two-wheeler insurance?

Paytm Insurance provides a quick and easy interface to renew your two-wheeler insurance policy. Enter your vehicle number to compare quotes and purchase a policy within two minutes.

2. Can I renew two-wheeler insurance online?

Yes, you can. You can even compare policies by different companies before renewing your policy. 

3. Can I renew my two-wheeler insurance after the expiry date?

It is advisable to renew your bike insurance policy on or before the insurance expiry date. But you can do it within 90 days of the expiry date too and keep all your policy benefits intact. 

4. Is bike insurance mandatory for five years?

Bike insurance is mandatory for five years for new two-wheelers. Afterward, you can renew annually.

5. What documents do I need to renew my bike insurance policy?

To renew your bike insurance policy, you must submit your bike insurance policy copy, identity card, address proof, photograph, driving license, registration certificate, and bike registration number.

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