Don’t we all love discounts?
However, when it comes to bike insurance, you may have a hard time finding one! Moreover, the premium amount for Third-Party Liability Cover hikes by almost 20% annually.
But don’t lose hope, there is still a silver lining.
Most insurance providers offer discounts on the “Own Damage” or OD portion of the premium amount for a Comprehensive insurance cover. This will help you bring down the premium cost.
Discounts Offered in Bike Insurance
1. Opt for Voluntary deduction
Voluntary deduction refers to your contribution to the repairing cost, in case of an accident. Normally, if you have a valid Comprehensive Cover, the cost of repairing the damage is borne by the insurance provider. If you opt for Voluntary deduction, your premium amount is reduced. In case, there is no claim, you save on the premium amount. But, in the event of an accident, the amount equivalent to your declared voluntary deductible will be reduced from your claim amount.
The table below compares the relation between Voluntary Deduction and Discount offered in the Premium Amount -
|Voluntary Deduction (in INR)
|Discount in Premium Amount (in %)
5% of Own Damage Premium,
*Maximum discount of INR 50
10% of Own Damage Premium,
*Maximum discount of INR 75
15% of Own Damage Premium,
*Maximum discount of INR 125
20% of Own Damage Premium,
*Maximum discount of INR 200
PRO-TIP - Voluntary deduction is different from compulsory deductibles, which one has to pay in case of a claim.
2. Use Your No-Claim Bonus (NCB)
No-Claim Bonus or NCB is a reward offered by your insurance company for being a safe rider. It is a percentage discount offered to bike owners who do not file for any claim during the policy term. You can use your No-Claim Bonus at the time of renewing your policy. If you are changing your insurer, you can transfer your No-Claims Bonus (NCB) to a new insurer.
|No-Claim Bonus (IN %)
|After 1st claim-free year
|After 2nd claim-free year
|After 3rd claim-free year
|After 4th claim-free year
|After 5th claim-free year
PRO-TIP: To avoid missing out on No-Claim Bonus (NCB) provided by your insurer, do not raise small claims.
3. Install Anti-theft Devices -
Installing an anti-theft device reflects that you are careful about your vehicle. It shows the insurance provider that you are taking the necessary precautions. It also reduces the chances of theft. Therefore, if your bike has a security device installed, your insurance provider may lower your premium amount. However, it is important that the security device you install must be approved by the Automotive Research Association of India (ARAI)
PRO-TIP: Installing an ARAI-certified Anti-Theft Device can reduce your premium amount by 10%.
4. Register with an Automobile Association
Most insurers offer exclusive offers and benefits to motorcycle organizations and biking clubs. As a loyal member, you can use these premium discounts and services to reduce the premium of your bike insurance.
Want to save a little extra?
Another secret to reducing your premium amount is to opt for a multi-year bike insurance policy.
Invest in Multi-year Two Wheeler Insurance for More Savings
Generally, the policy term for bike insurance is one year. Over the past few years, it was noticed that IRDAI hiked the Third Party Liability cover by 20% every year. Looking at this trend, most bike owners started investing in multi-year plans. This allowed them to renew after 2 or 3 years as per the tenure.
Investing in a multi-year bike insurance plan can help you save 20–40% upfront on your premium amount. You can also save an extra 20% by avoiding the yearly hike in Third Party Liability premium.
In order to get the best price for your two-wheeler insurance policy, remember to compare different insurance providers online. You can also make use of your No Claim Bonus and invest in anti-theft devices for improved protection. Opting for a long-term multi-year plan will also bring down your premium rate as well as take away the burden of annual renewals.