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Motorbike Insurance – Most Asked Questions and Their Answers

14 July 2022, 11:57 AM

The convenient mode of transportation has made two-wheelers the go-to commute option for most Indian families. However, prospective two-wheeler buyers research much to decide on one of the best rides for them. They ask whether there is an anticipated price drop or a possibility of a rebate or festival discount. The idea is to get the best deal.

However, two-wheeler purchase formalities don't end with just buying a bike, for it is illegal to ride a motorcycle on Indian roads without insurance. Which bike insurance is mandatory, and do you rely on the dealer to get the two-wheeler insurance, or do you get it yourself? 

Know here the answers to the questions you may have concerning bike insurance.

Which Bike Insurance is Legally Mandatory in India?

As the legal repercussions from an accident to the third party results in legal hassles, the IRDAI requires all bike owners to buy at least a 3rd party bike insurance. Thus if bikers ride their bikes on the Indian roads in non-compliance, they may be penalized with a monetary fine or imprisonment.

Riders can choose from :

  • Third-party bike insurance
  • Comprehensive bike insurance

The rider can choose either of the two depending on desired coverage. Third-party bike insurance covers loss to the third-party property from the insured bike in a road accident, but 3rd party bike insurance does not cover the cost of repairs or any such fee to the insured bike. Nevertheless, comprehensive bike insurance covers both own two-wheeler and third-party losses arising from road accidents as it also includes mandatory 3rd party bike insurance.

Use the table for clarity:

Loss by Road AccidentThird-Party Bike Insurance  


Bike Insurance

Damage to a third-party vehicle in an accidentCoveredCovered
Damage to third-party property due to an accident involving an insured bikeCoveredCovered
Personal Accident CoverCoveredCovered
Damage to the bike in case of an accidentNot coveredCovered
Damage to the bike in case of natural calamities Not coveredCovered
Damage to the bike in case of riots or strikesNot coveredCovered
Stolen insured bikeNot coveredCovered

Is the 5-Year Bike Insurance Policy Mandatory in India?

The insurance regulator, IRDAI, regularly modifies automobile insurance laws and regulations. When you acquire bike insurance, one of the things that will come up is long-term 5-year coverage. How does it compare to a conventional one-year bike insurance policy?

Following the Supreme Court ruling in September 2018 requiring all riders in India to buy two-wheeler insurance, the IRDAI has ruled that all new two-wheeler owners must buy third-party bike insurance for five years. The ruling does not affect the non-mandatory comprehensive bike insurance.  

The shield is beneficial for riders because

They only pay a one-time fee for an active policy for five years. 

IRDAI's annual basic premium for third-party insurance revision does not affect the five-year bike insurance cover.

The no-claim bonus (NCB) is a discount on the following year's premium for each claim-free year. In a 5-year long-term bike insurance policy, the NCB does not become null and void if the rider does not submit claims in the policy's tenure.

Also read - 6 Amazing Benefits of Having Long-term Third-party Insurance Coverage

How Do I Buy Bike Insurance Online?

If hassle-free claim settlements, paperless transactions and 24x7 customer service are what you want with your two-wheeler insurance, buy it online. Here is what bike owners must do:

Comprehensive vs Third-party Bike Insurance

There is a need to check for a policy covering all types of emergencies. The rider pays less for third-party bike insurance than for comprehensive bike insurance. But it is worth extra money because a comprehensive bike insurance policy covers more. 

What happens when you already have a third-party bike insurance policy? Choose a standalone own damage (OD) plan to cover damages from road accidents to the insured vehicle.

Also read - Third Party v/s Comprehensive Two Wheeler Insurance

How to Calculate the Two-wheeler Insurance Premium Amount?

The calculation of two-wheeler insurance premiums before buying helps compare quotes and depends on numerous parameters like the year of registration, bike brand, model, engine capacity, etc.

The bike insurance premium calculator is the more feasible method of calculating two-wheeler premiums.

Also read - Benefits of Using Car Insurance Premium Calculator

What is the Biggest Benefit of Buying Bike Insurance Online?

Purchasing a bike insurance policy online allows you to compare the quotes of several insurance providers. However, during the comparative study, do not only check the prices; check what the price includes or excludes to grab the best deal.

How to Choose Bike Insurance Add-ons?

Riders can choose extra insurance cover by selecting the right two-wheeler add-ons. It is good to note that the personal insurance cover shields the rider but not the one who rides the pillion. If the pillion rider is hurt or dies during the accident, the rider will incur out-of-pocket expenses. It is thus advisable to buy a personal accident cover for the pillion add-on.

Online Bike Insurance Purchase–How to Pay?

Riders pay for the bike insurance policy with the click of the mouse through online payments or mobile bank services. The policy will be sent to the rider via email within seconds of the payment.

Also read - 


1. What should we check before buying bike insurance?

The rider must check the type of the policy (comprehensive or third-party), its coverage, the insurance company's financial standing, and inclusions and exclusions in the insurance provider's quote.

2. Can I make multiple claims against my bike insurance policy?

Insurance providers in India do not restrict the number of claims against the insurance policy. Still, if the rider submits claims repeatedly, the insurer may consider raising the premium on renewal.

3. What will a bike insurance policy not cover?

Suppose the rider was under the influence of alcohol or drugs when he met with an accident that caused damage to his bike. The insurance company may not settle claims arising from war, arson, or radioactive or nuclear damage. Depreciation, engine damage, and electrical or mechanical failure may not get covered too under a standard insurance policy. One needs to buy suitable add-ons for such coverage. This is the broader exclusion.

Specific exclusions also apply policy-wise. A third-party bike insurance policy won't cover vehicle damage expenses, whereas a standalone policy does not have the mandatory third-party cover. Comprehensive policies seem the best and are virtually unbeatable with suitable add-ons.

4. How does the insured declared value of the bike work during settlements?

Insured declared value (IDV) is the two-wheeler's monetary value at the policy purchase time. Suppose your bike is stolen or damaged due to an accident or by other means. In that case, you get the IDV during a settlement. However, the IDV does not include the depreciation cost, registration charges, insurance costs, etc.

5. Can a bike insurance policy be cancelled?

There is no provision for the cancellation of the bike insurance policy. Still, if the bike used for commercial purposes changes to private use during the policy tenure, it may cancel the previous one.

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