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Myths About Two Wheeler Insurance

By Vikas Chandra Das
21 July 2022, 11:46 AM
myth about two wheeler insurance

Two-wheelers account for about 25% of the total number of road accidents in India. The Motor Vehicles Act of 2019 was implemented to improve road safety in the country. Under this act, there is a considerable increase in fines for many offences. One of these offences is riding without valid two-wheeler insurance. As a two-wheeler owner, it is important for you to understand the various aspects and how they affect you. 

So, let’s find the facts behind some of the most common myths about two-wheeler insurance: 

Myth 1: Third Party Liability Coverage is Enough for Two Wheelers

FACT: Third-party liability cover provides compensation in case of damages to a third party. This coverage does not cover damages or losses to your bike. In case of an accident, having only a third-party liability cover is not enough. In case, you are only carrying a third party liability policy, we would suggest you go one step ahead - opt for a comprehensive policy instead. A comprehensive insurance policy offers the benefits of both - third-party liabilities as well as own damage for your bike. It also includes a Personal Accident (PA) cover of up to INR15 lakhs. 

Myth 2: All Damages are Covered by Two Wheeler Insurance

FACT: Although it provides financial protection, two-wheeler insurance does not completely cover all damages in all situations. Like all insurance products, two-wheeler insurance policies have their terms and conditions. Some common incidents where damages are not covered are -

A. Drunk Riding: If you are found guilty of drinking and driving, damage caused by you will not be covered by the insurance company. 

B. Driving without a Valid Driving License: If you are found guilty of driving without a valid driver’s license, damage caused by you will not be covered by the insurance company. 

C. Contributory Negligence: Damages caused to your bike due to your carelessness are known as ‘Contributory Negligence’. A common example is meeting with an accident while riding your bike at a speed higher than permitted. In such a case, the insurer can reject your claim request against damages caused to your bike.

Before buying, make sure you read and understand the terms and conditions well. It is equally important to know the exclusions and procedure for claims settlement before buying   

Myth 3: Pillion Rider is Automatically Covered by Two Wheeler Insurance

FACT: Pillion riders are not automatically insured under any two-wheeler insurance policy.

Even if an insured bike meets with an accident, hospitalization bills of the pillion rider will not be covered. This is true even in the case of a Comprehensive policy. Therefore, if you travel with a pillion rider regularly, you should choose an add-on of Personal Accident Cover. This add-on cover will reduce your financial risk, in case of accidental harm to the pillion rider. It provides coverage in case of death or permanent or partial disability of the pillion rider.

Myth 4: Credit Score Affects the Premium Amount of Two-wheeler Insurance

FACT: It is often believed that the premium amount for two-wheeler insurance depends only on credit score. However, this is not accurate. The premium for your two-wheeler policy depends on the type of coverage and Insured Declared Value (IDV). There are also many other factors such as - the capacity of the engine (in CC), make and model of your two-wheeler, the year of manufacture, location or place of registration, fuel type, etc.

Myth 5: It Is Not Possible to Change Two Wheeler Insurance Policy   

FACT: Generally, two-wheeler insurance policies need to be renewed annually. So, you can easily change your insurer at the time of renewal. If there are no claims filed against your policy, you can also demand No Claim Bonus (NCB) from your previous insurance company.  

Myth 6 - Two Wheeler Insurance Covers Both Personal as well as Commercial Use

FACT: Your two-wheeler insurance provides coverage for the personal use of your vehicle only. If you use your vehicle commercially, you will need to carry a separate policy. Based on the type of commercial activity, it can be the passenger-carrying vehicle policy or goods carrying vehicle insurance. 

Myth 7 - Buying Two Wheeler Insurance Online is Unsafe

FACT: On the contrary, buying two-wheeler insurance online is very safe. Today, a majority of insurers and brokers offer policies online. This makes the process faster and hassle-free. Your personal information is never disclosed to anyone and your policy copies are stored safely online. All websites ensure their systems are well protected against any kind of fraud. 

Myth 8 - Buying Two Wheeler Insurance is Expensive

FACT: Two wheeler insurance is not expensive if you buy the right policy. With more and more insurers online, you can easily compare policies and their benefits. If you are buying online, you can also use customized filters to compare premium rates of the insurers. It is important to remember that saving money on an insurance policy may end up spending a lot more at the time of an emergency. While making decisions related to investments, always look at the bigger picture. 


As per the law, it is mandatory to have an active and valid two-wheeler policy while driving on the road. However, most vehicle owners think buying two-wheeler insurance is too complicated. This gives rise to several myths about two-wheeler insurance. We have tried to put the facts forward. As a vehicle owner, it is your responsibility to understand the process and advantages of two-wheeler policy. So, keep all the myths away and make an informed decision of buying a two-wheeler insurance policy.

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