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Why Should I Purchase Two Wheeler Insurance?

By Vikas Chandra Das
21 July 2022, 11:46 AM
why should i purchase two wheeler insurance

According to the data released by the Ministry of Road Transport & Highway, every minute one serious road accident occurs on Indian roads. 25% of these accidents involve two-wheeler vehicle owners. To improve road safety, the government has made it mandatory to have a Third Party Liability cover for all two-wheeler owners. However, it is often found in case of accidents, the cost of “own damage” exceeds third party damages. Therefore, it is advisable to have a Comprehensive Cover that provides all-round coverage. 

Here is a Table to Help you Understand the Importance of Comprehensive Two-wheeler Insurance

Coverage Only Third Party Liability CoverComprehensive Cover
Damage to third party vehicle Covered Covered
Damage to third party propertyCoveredCovered
Personal Accident CoverCoveredCovered
Damage to the vehicle in case of an accidentNot coveredCovered
Damage to the vehicle in case of natural calamities Not coveredCovered
Damage to the vehicle in case of riots or strikesNot coveredCovered
Theft of vehicleNot coveredCovered

Advantages of Having a Two Wheeler Insurance

Prepare for Emergencies:

Over the last few years, road accidents have been a steady increase in number. The growth trend in road accidents in the last ten years was an 8% increase annually. This is a reflection of the condition of road safety in India. As a two-wheeler owner, it is advisable to stay safe while driving. While helmets are a physical form of protection, it is equally important to secure yourself financially. In case of any unforeseen events like road accidents, you can secure your vehicle as well as yourself with a two-wheeler insurance policy

Third-party liability insurance is compulsory as per the law in India. This policy covers only the damages or losses caused by your bike to the third party or property. It includes a Personal Accident (PA) cover for the vehicle owner, in case of hospitalisation or bodily injuries. 

A Comprehensive Cover provides coverage in case of “Own Damages” along with Third-Party Liability Cover. Additionally, if your two-wheeler gets stolen, the comprehensive policy also covers bike theft.

Protection for Your Vehicle: 

A standard comprehensive two-wheeler insurance policy covers a wide range of unexpected scenarios like theft, fire, natural calamities or human activities, vandalism, etc. Apart from these, a Comprehensive Insurance policy also covers the costs for damage or losses caused to your bike due to an accident. 

Third-party two-wheeler insurance provides basic financial coverage related to third-party expenses only. While comprehensive two-wheeler insurance gives complete protection and coverage to both, insured as well as the third party. To improve your level of financial protection, you can consider buying add-ons. Depending on your requirement, you can choose from a range of Add-on products available. The most common Add-ons for a two-wheeler are Pillion Rider, Key Replacement Cover, Zero Depreciation Add-on and Roadside Assistance. 

Personal Accident Coverage: 

Although laws are being made to enforce road safety, accidents are still common. Road accidents often result in serious injuries. Some accidents have even caused the death of the rider. 

As per the guidelines issued by IRDAI, all two-wheeler owners need to have a personal accident (PA) cover of INR 15 lakhs as part of PA coverage. This will be useful in case of injury, death, or any permanent disability resulting due to an accident. The Personal Accident (PA) coverage can only be claimed in the name of the vehicle owner. 

Result of not Having a Two Wheeler Insurance ​

Unwanted Penalties

As per the Motor Vehicles Act, it is illegal to ride without two-wheeler insurance. If you are caught without a valid two wheeler policy, you must be prepared to pay a heavy penalty. In some cases, owners also had to face imprisonment for 3 months. 

Unable to Get No-Claim Bonus (NCB)

If you do not file a claim, the benefits are collected as a no-claim bonus (NCB). A percentage of discount is then applied to the premium amount at the time of renewal of your two-wheeler policy. As a two-wheeler owner, you are eligible to claim the no-claim bonus after the first year. However, if your policy has lapsed for 90 days or more, the no-claim bonus will no longer be valid.

Out-of-pocket Expenditure

In case you do not have two-wheeler insurance, you have to manage a lot of expenses from your pocket. Suppose, if you do not have the compulsory Third party liability, the damages and losses to the third party will be borne by you. Similarly, in the absence of Comprehensive Policy, losses suffered due to natural calamities like floods, cyclones, earthquakes will also have to be paid from your own pocket. Moreover, damages caused to your vehicle due to human activities such as theft or riots will also be your responsibility. Thus, without two-wheeler insurance, you will end up with financial loss as well as mental stress. 


Most vehicle owners think that two-wheeler insurance is unnecessary. However, the situation on the road is highly unpredictable. Therefore, it is important for every two-wheeler owner to have a valid insurance policy. The consequences of not having a two-wheeler policy are far worse than investing one. In fact, in case of an unforeseen accident, you may end up paying more than the premium of a two-wheeler policy. So, it is always best to make an informed choice by purchasing two-wheeler insurance.

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