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Tips on Choosing the Most Appropriate Two-Wheeler Policy

By Vikas Chandra Das
18 August 2022, 12:09 PM

Did you know that in the world, India is the country with the maximum number of fatalities due to road accidents? Most of these involve a two-wheeler. Though you may try your best to drive carefully, anything can occur due to weather conditions, carelessness of another driver, faulty traffic signals and signposts, etc. You can’t be too careful in these situations and therefore two-wheeler insurance comes into the picture. The government has attempted to safeguard all vehicle users by making bike insurance mandatory for all bike purchases. With all the confusing information out there, it is necessary to take insurance shopping seriously. Understand your requirements, read about and compare different insurance policies and companies. Here are some tips to guide you in the process.

1. Find Out What All Your Policy Covers

There are majorly two different types of insurance policies for two-wheelers. Purchasing at least 3rd party bike insurance when you purchase a new bike is mandated by law. This policy is the cheapest in the market and will financially protect you against the death, bodily injury and damage to property caused to a third-party. However, experts suggest that a comprehensive two-wheeler policy is ideal because in addition to protecting you against damage to someone else, it also covers damage and injury to yourself and your bike.

2. Know What is Insurance Declared Value (IDV)

The IDV in insurance parlance is the current market value of your two-wheeler. This is the maximum amount your insurance company will pay in case your bike gets stolen or there is so much damage to your bike that it cannot be repaired or used. The IDV of your vehicle will decrease with every year due to depreciation, which lowers the premium amount.

Read more - A Complete Guide to a Two-wheeler Insurance Policy

3. Choose the Best Premium Rate

While looking up different bike insurance-related websites, you will notice that, in the absence of your registration number, you are required to input the make and model of your bike. This is because your premium amount, that is, the amount you are liable to pay while purchasing the policy, depends upon the bike’s engine capacity (in cubic capacity - CC). If your bike has a high engine capacity, it will have a higher premium rate. Specific add-ons will cost a little bit extra. If you’re looking for the most pocket-friendly options, then 3rd party bike insurance is the way to go. 

4. Compare Different Policies Online

The internet has made it extremely easy for us to look at different options for every single product and it’s no less true for insurance policies. Spend some time on looking up other customers’ reviews. Find out different companies’ turn-around-time (TAT) - the average amount of time the company takes to settle a claim, and check the claim settlement ratio (CSR) - the maximum number of claims settled by the company against the total number of claims filed with them. Go for a company whose TAT is low and CSR is high.

Read more - A Guide to Change Your Bike Insurance Policy

5. Learn About What is Excluded

While it is of course necessary to know what your insurance covers, it is equally important to know what the exclusions of your policy are. You should read up about what are the situations in which you cannot raise a claim. If you’re buying insurance online, then most companies will easily mention the list of exclusions in the policy document. Here are some common exclusions:

  • Damage occurring to the bike outside the state in which the bike is registered
  • If the rider was under the influence of drugs or alcohol
  • If the rider does not have a valid driver’s licence
  • Regular wear and tear of the bike
  • Not wearing a helmet
  • Riding someone else’s bike

6. Take a Look at Appropriate Add-ons

A comprehensive insurance policy allows you to buy additional services at an affordable extra cost. Some good add-ons are:

  • Zero Depreciation Cover – This add-on will ensure that the insurer will not calculate the depreciation amount of the two-wheeler if you file a claim. As a result, you will receive a higher claims pay-out.
  • Roadside Assistance Cover – Some companies have a tie-up with various mechanics so that they can offer this service to assist you on the road during times of need. They will arrange for a mechanic to arrive at your location and check your bike, plus offer towing services.
  • Pillion Rider Cover – The policies mentioned above don’t cover any other person who rides behind you, so this add-on will protect that.
  • Return to Invoice (RTI) Cover – This is an add-on which closes the gap between the price of your bike as on your invoice and the IDV. This can be availed only in cases of complete irreparable damage to your two-wheeler.
  • Engine Protect Cover – The bike engine is not usually covered in these insurance policies, so it would be prudent to get this add-on to protect any damage to the engine of your bike.

Read more -  Top Add-on Covers to Consider in Car Insurance

For Your Peace of Mind…

No matter how good a driver you are, you can never predict what can happen when you’re on the road. In order to protect yourself and others in the case of an accident, you must buy the best two-wheeler insurance policy for you. Keep all these tips in mind while insurance shopping and they will ease your way in deciding the most appropriate policy that you need.

Read more - How to Make Changes in Your Two Wheeler Insurance Policy


1. What is the difference between 3rd party and comprehensive bike insurance?

A 3rd party insurance policy covers damages and injuries only to a third party, whereas a comprehensive bike insurance policy covers damages and injuries to both yourself and a third party. There are also various useful add-ons that can be purchased, but these can be added only to the comprehensive insurance policy.

2. What are the documents required to purchase a bike insurance policy?

To buy the most basic 3rd party bike insurance policy, you need to keep at hand your personal details such as correct name, contact details and an identity card. Other than that, it is important to know all the details of your vehicle such as make and model name, registration number, chassis number, engine number, date and city of purchase, etc.

3. What add-ons can I purchase with my 3rd party insurance policy?

You cannot purchase any add-on with a third-party bike insurance policy.

4. Is it necessary to buy an insurance policy for my two-wheeler?

Yes. The Motor Vehicles Act, 1988 has made it mandatory for all bike owners to purchase at least a 3rd party insurance policy for their bike. Without insurance, you can be made to pay a fine up to INR 2000.

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