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A Complete Bike Insurance Guide for First-time Buyers

By Vikas Chandra Das
02 August 2022, 2:58 PM

If you choose to buy a bike for your daily commute, one of the first things you should do is get insurance cover for your vehicle. Two-wheeler insurance is not only a legal requirement but is also vital for your safety. Getting a good cover for your bike may cost initially but, in turn, safeguards you financially in case of an accident or theft involving your insured two-wheeler.

Today, you can find a wide variety of bike insurance plans from different companies in the market. With so many options, choosing the right policy can seem confusing and overwhelming, particularly if you buy it for the first time. This guide is to help you find the best bike insurance that suits your needs and budget.

Types of Bike Insurance Policies

Two-wheeler insurance plans can be categorised into three types:

1. Third-party Bike Insurance

This is the basic insurance cover that bike owners should have, as the law requires. Such a policy offers financial protection against any liabilities to third parties in case of unforeseen events. The policy does not cover damage to the vehicle or incidents of theft.

2. Standalone Own Damage Insurance Cover

You can also choose a standalone own damage bike insurance policy that covers any costs of damage to the vehicle due to an incident and provides financial protection against theft or loss of the bike.

3. Comprehensive Bike INsurance Policy

It is a complete package that covers you against financial obligations to third parties and the costs of getting your vehicle repaired in the event of an accident. These insurance plans also let you choose from a wide range of add-ons to supplement your coverage.

Read more - Beginners Guide to Buy Bike Insurance Online

Key Factors to Consider While Choosing Bike Insurance

Insurance companies consider several aspects to determine the premium and insured amount for your bike insurance policy. Let us discuss some important factors to consider when selecting two-wheeler insurance.

1. Insured Declared Value of the Vehicle

The most critical aspect of a bike insurance policy is the insured declared value (IDV) offered by the insurer. It is the maximum amount your insurance company will pay at the time of the claim settlement. Though many companies offer a lower premium for a lower IDV, it might result in a smaller claim. Therefore, you must choose a plan with a suitable IDV meeting your requirements and budget.

2. Cashless Facility

Most insurance companies have tie-ups with network garages where you can avail of a cashless repair facility under the policy. In case of damage due to an accident, you can get your bike repaired at one of these garages and get the bills settled directly by the insurer. You should select an insurance company with an authorised garage near you so you can use the cashless facility easily.

3. Additional Covers

Two-wheeler insurance companies generally provide additional facilities and benefits through add-ons.

You can add these covers to your standard policy to receive extra coverage. See that you check and compare the add-ons and perks offered by different insurers before selecting.

4. Settlement Process

Your ultimate goal in buying a bike insurance policy is to get a claim. Whenever you face an accident or any other unforeseen event, file an insurance claim with the company at the earliest.

To ensure a convenient experience of filing and receiving your claim, look for services like digital processing, self-inspection, and more. Also, check and compare the claim settlement ratios of different companies to see the most committed ones when settling claims.

5. Select the Right Insurer

Choosing the right insurance company for your bike’s insurance is as crucial as the policy itself. Your choice of insurer determines how smooth and convenient your claim settlement process is and what other benefits and services you receive. Before buying your bike policy for the first time, visit the websites of different insurers to learn about the services offered.

Reading customer reviews also gives you an idea of the company’s reputation. Social media platforms provide information about other users’ experiences with different providers. You can even ask your friends and family about their experiences with specific insurance companies to make an informed decision.

6. Choose the Right Policy Type

The law requires third-party insurance coverage for riding a bike in India. However, a comprehensive policy is a better choice as it covers third-party liabilities and damage to the vehicle. With this policy, you can also extend the coverage further through add-ons.

7. Be Careful of the IDV

IDV is the estimated market value of your vehicle and is used as a reference in cases of theft or total loss. It is a common notion that setting a lower IDV reduces the insurance premium amount. However, it is worth noting that a lower IDV also decreases the claim amount.

8. Choose Your Add-ons Wisely

It is easy to go overboard when selecting add-ons for your new vehicle. However, each add-on will add to your policy’s cost.

The key is to gauge your requirements and select the add-ons that suit your needs. For example, you can avoid buying a pillion rider add-on if you are the one riding your vehicle alone most of the time.

Read more - Top Bike Insurance Add-Ons

9. Read the Policy Document

One of the reasons why so many claims get rejected every year is that policyholders don’t read the document carefully.

It is critical to go through all the terms and conditions of the insurance and understand the inclusions and exclusions before signing the document.

Read more - Importance of Two Wheeler Insurance


Purchasing insurance coverage for your bike is not only mandatory but also beneficial. Make sure you choose a plan that provides optimal coverage at a competitive premium to stay protected against financial liabilities associated with owning a bike.

Read more - A Starter’s Guide to Know About Two Wheeler Insurance in India

If you are buying bike insurance for the first time, identify the best insurers online and choose your policy and add-ons wisely, considering your needs and budget.


1. Is bike insurance mandatory in India?

Yes, having third-party cover is mandatory for all two-wheelers in India and may attract a penalty if a bike is found to be uninsured during traffic checks.

2. What is the comprehensive cover for bike insurance?

The comprehensive cover goes beyond just third-party insurance and covers damages incurred by the first party and any injuries incurred by the same. It might also cover other mishaps such as fire, earthquakes, and theft.

3. How many claims are permissible for bike insurance?

There's no limit as such. under a regular bike insurance policy, you can claim for as many times as you can. But in the case of add-on covers, the insurer can restrict the number of claims. For example, the NCB protection cover add-on allows a maximum of two claims during the policy period for getting your bonus protected.

4. Can bike insurance be claimed for minor scratches?

Yes, you can claim for minor scratches. But claiming too often can prompt the insurer to raise your premium on renewal. So, you can avoid claiming minor scratches that cost a little.

5. What is NCB in bike insurance?

NCB refers to a no-claim bonus bike owners get for not filing a two-wheeler insurance claim during the policy period.

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