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Nearly 60% of Vehicles are Uninsured, Most of These are Two-Wheelers

By Vikas Chandra Das
27 July 2022, 1:15 PM

The Insurance Information Bureau has data that says a whopping 60% of vehicles are not insured, and most of these vehicles are two-wheelers. Around 70% of the vehicles on the roads are two-wheelers, and about 30% end up in accidents across India.

In the above numbers, a fair amount of bike owners are uninsured even though the importance of insurance is made known and even after it is made compulsory by the law. 

This happens because of two reasons. One, most people are ignorant of the law and do not buy bike insurance in the first place, and secondly, even if people buy a bike insurance plan, they forget to renew it on time. 

Important Laws and Facts About Two Wheelers

  • Registration Certificate

The RTO issues a registration certificate that contains information about the vehicle, such as the chassis number (identification number), registration number, and engine capacity. 

  • Valid Driver’s License

You should have a valid driver’s license. You need a two-wheeler license if you want to ride a motorcycle with gear.

  • Insurance

You should always have a copy of your motorcycle insurance. It should be mentioned here that the insurance validity is also important, i.e., the policy should be renewed on or before the expiration date.

  • Pollution certificate

This is usually issued at a check station (near a gas station) with a year's validity period for new riders and a six-month validity for renewals.

  • No triple riding

Only two people may ride on a bike at a time.

  • Helmet

This is the most crucial item. Both the rider and the pillion rider should wear helmets. 

Two Wheeler Insurance Types

Bike owners can choose between comprehensive two-wheeler insurance and third-party insurance, depending on their needs. In India, bike insurance is required, although only third-party liability coverage is mandatory. 

This eliminates the need to purchase a comprehensive coverage plan that covers both the owner and third parties.

Third-party insurance is required since anyone can file a claim for damages to their property, health, or vehicle if they are involved in an accident. As a result, if the insured cannot afford the damages, the insurance company will provide financial help to meet the costs. 

However, the following reasons tell why we should buy comprehensive two-wheeler insurance:

  • Extensive Coverage

A comprehensive auto insurance policy covers bike theft, loss, or damage. It also covers damages to the insured’s bike caused by natural disasters like floods, earthquakes and lightning, as well as man-made disasters such as strikes, terrorist operations, riots, etc.

  • Coverage for Personal Injuries

Comprehensive two-wheeler insurance includes personal accident coverage to give the financial support that an insured needs to recuperate from the injuries and health difficulties sustained in an accident. It also covers the insured in the event of permanent disability or death because of the accident.

  • Additional Protection

If a pillion rider is required, comprehensive coverage permits the rider to get supplementary coverage for the pillion.

Reasons to Have an Insurance Policy

  • It compensates for the damage to the bikes.
  • It pays hospital bills.
  • It gives complete protection to your family.
  • It is made compulsory by law.

Penalty for Uninsured Riders

All motorcycles must carry third-party insurance, according to the Motor Vehicles Act 1988.

Riding an uninsured motorcycle in India carries a penalty of INR 2,000  and/or three months in prison for a first offence. For the second time, you will have to pay a fine of INR 4,000 and/or serve three months in prison.

Two Wheeler Insurance Updates

There is a surge in the purchase of electric bikes, but this has come at the cost of an increase in the number of batteries catching fire. Because of this reason, there could be an increase in two-wheeler insurance premiums.

While EV manufacturers pay for the loss or damage because of manufacturing faults, insurance companies compensate for death, accidents, and injuries under the current insurance coverage plans.

Existing insurance plans do not cover an individual’s loss or accident caused by vehicle's manufacturing flaws.

Read more - Top 7 Facts About Bike Insurance Claim Rejection That You Must Know

Strict Application of Laws

Since 2015, the number of people dying or getting injured in traffic accidents has increased. These figures are only causing concern among government officials, not among riders.

To address this risk and deal with any two-wheeler disaster on the road, the government has mandated the purchase of insurance coverage. It’s not just for the sake of our bikes but also for our safety.

You may be skillful drivers, cautious and attentive to everything on the road, but you may still meet with accidents. That is why it is critical to purchase an insurance policy.

The Bottom Line

Many ads, newspapers, news stories, and online posts have talked enough about buying two-wheeler insurance, but people have stayed ignorant, assuming nothing would happen to them on the roads. Be a loyal citizen and buy a bike insurance policy that offers maximum coverage. 

Read more - Myths About Two Wheeler Insurance


1. Is it compulsory to insure our old bikes?

Every bike must be compulsorily insured with third-party insurance coverage, whether old or new.

2. What are the factors that are not covered in insurance?

Loss, damage, or injury to the rider resulting from riots, terrorist activities, wars, and other natural disasters such as earthquakes, tsunamis, etc., are not covered in the insurance policy.

Bike insurance policies don't cover accidental loss or damages if the driver is found to have an invalid driving licence. No compensation is allowed if the driver is found driving under the influence of alcohol, drugs, etc. Depreciation, engine damage, etc, are also not covered unless you buy suitable add-ons.

3. How many claims do insurance companies accept?

Two claims are allowed in two-wheeler insurance, but it varies between companies. 

4. Can we claim engine damage in insurance?

Yes, you can claim engine damage in insurance. However, you cannot claim insurance if the damage is caused by wear and tear or faulty manufacturing.

5. What is the penalty for riding the bike without insurance?

Riding an uninsured bike in India carries an INR 2,000  fine and/or three months in jail for the first time. For the second time, the penalty is an INR 4,000 fine and/or serving three months in prison.


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