Bike Insurance

What is Bike Insurance

Bike insurance or two-wheeler insurance is a financial safety net, saving bike owners from paying hefty repair bills. This policy acts as a contract between the bike owners and insurance company, protecting them from financial loss due to accidents, theft, fire, natural calamities, man-made disasters, or third-party liabilities. Third-party bike insurance is mandatory for everyone owning bikes under the Motor Vehicle Act 1988, hence, buying bike insurance ensures safety and peace of mind while riding your two-wheeler. For new bike owners, buying bike insurance for up to 5 years is mandatory to stay worry-free and avoid a ₹2,000 challan.

Key Features & Benefits of a Two-Wheeler Insurance Policy

*Disclaimer: The above table includes general information. The key features & benefits will be according to the policy wording.

Which Vehicles are Covered under Two-wheeler Insurance?

You can buy a two-wheeler insurance policy to protect the following vehicles:

• Regular Daily Commuting Bike
• Scooty/Scooter
• Moped Electric Two-Wheeler
• Hybrid Bike
• Luxury Bike
• Sports Bike

Types of Two Wheeler Insurance Policies in India

Broadly, there are three types of bike insurance policies offered by insurance companies in India. As per your need & budget, you can buy third-party bike insurance, comprehensive bike insurance, and own-damage bike insurance policy.

1. Third-Party Bike Insurance

   Third-party bike insurance covers the policyholder against legal obligations that may arise from causing damage to a third party in a road accident, whether a person or their property. The Indian Motor Vehicle Act, 1988, mandates all two-wheeler owners to have valid third-party insurance while riding on public roads.

2. Own Damage Bike Insurance

   The own damage bike insurance is also known as a standalone own-damage (OD) cover. It provides financial coverage for the damages caused to the insured bike against theft, accidents, fire, etc. It is advisable to have this policy in addition to mandatory third-party insurance for extensive protection.

3. Comprehensive Bike Insurance

   Comprehensive bike insurance protects you against any damage to your vehicle in addition to third-party legal liabilities. It shields your bike from fire, natural calamities, theft, accidents, man-made disasters and related adversities.

Comparison of Bike Insurance Policies

The below table highlights the key differences between the three types of two-wheeler insurance. Whether you own or plan to buy an e-bike, a luxury bike, or a regular bike, these two-wheeler insurance features are uniform for all.

Why Do You Need a Bike Insurance Policy?

• Legal Requirement
  In India, having at least third-party bike insurance policy is mandated by law under the Motor Vehicle Act. Riding an uninsured bike means you have to pay a fine of ₹ 2000/- and might face legal consequences as well.
• Financial Protection
  The primary objective of any insurance policy is to provide financial protection against the premium paid by the policyholder. Here, it provides protection against costly repairs or replacement of the damaged bike in an accident, theft, natural disasters, or any other insured perils. 
• Covers Third-Party Liabilities
  If the insured bike causes injuries or damages to a third party/person/property, the policy covers the financial and legal consequences. 
•  Peace of Mind
  It allows you to ride your beloved bike with confidence and less stress as you will be covered against potential risks.

*Disclaimer: The above inclusions and exclusions are subject to change as per the insurer's policy wording. Kindly review the policy wording of the insurance company before buying the policy.

Bike Insurance Add-Ons 

1. Personal Accident Cover

   Compulsory Personal Accident (PA) cover in bike insurance is an add-on offered to the owner of the insured two-wheeler. As per the IRDAI, the maximum coverage offered is ₹ 15 Lakh. It offers full compensation to the nominee of the policyholder in case of sudden death in a road accident. It also compensates in case of injury or permanent disability of the policyholder.

2. Zero Depreciation Cover

   An insurer pays the claim amount after deducting the depreciation value of your bike. Zero depreciation cover in bike insurance eliminates any deduction on account of depreciation at the time of claim settlement.

3. NCB Protection Cover

   For every claim-free year, you can avail of a discount on the renewal of the comprehensive or own-damage premium. This is known as the No Claim Bonus in bike insurance (NCB). This NCB ranges from 10% to 50%.
   With the help of NCB protection cover in bike insurance, you can retain the NCB and get a discount during renewals, even if they raise any claim during their policy tenure.

4. 24/7 Roadside Assistance (RSA) Cover

   With roadside assistance add-on cover, you get 24/7 support for your bike or electronic bike in any emergency from your insurer (within a specified distance outlined in your policy documents).
   The roadside assistance in bike insurance protects you in case of breakdown assistance, emergency fuel assistance, flat tyre assistance, lost key assistance, minor repairs, etc. Furthermore, any service taken under this cover is not counted as a claim; hence, the NCB discount remains the same.

5. Return to Invoice (RTI) Cover

   At the time of total loss or theft of the insured bike, your insurance company will pay you the 'Insured Declared Value (IDV)'. However, if you have Return to Invoice cover in a bike insurance policy, it will bridge the gap between the IDV and the invoice/on-road price of your vehicle, including registration and taxes, allowing you to get the purchase value as the claim amount.

6. Engine Protection Cover

   It is an important cover if you reside in a flood-prone area or a location with frequent waterlogging. Engine protection cover in bikes offers compensation in case the insured two-wheeler engine is damaged partially or totally due to leakage of lubricant oil, water ingression, damage due to hydrostatic lock, etc.
   The engine protection cover also protects against damages to the insured bike engine parts, including cylinders, pistons, connecting rods, crankshafts, etc.

7. Consumables Cover

   Consumables refer to those essential parts of the bike needed to run it smoothly. The engine oil, brake fluids, chain lubricants, coolant, nuts & bolts, etc., are some popular consumables required to run the bike. With the help of consumables covers for bikes, the insurer reimburses the cost of consumables up to a specific limit.

8. Passenger Cover/Pillion Rider Cover

   A passenger cover in bike insurance, also known as pillion rider cover, offers additional financial coverage to the co-passenger or rider in case they meet with a road accident. The add-on covers the pillion rider in case of bodily injuries or death due to accidents or insured perils mentioned in the policy documents.

Bike Insurance Price in India

Bike insurance premiums can vary based on coverage and engine cubic capacity of a two-wheeler. Apart from this, there are various other factors that decide the bike insurance premium rates that we will discuss in the next section. However, the prices for a third-party bike insurance policy in India are uniform and decided by IRDAI. For fuel-powered two-wheelers, it is based on the bike engine’s capacity and for electric bikes, it is determined by its battery capacity (kW).

Third-party Bike Insurance Price

The following table explains the third-party bike insurance prices based on your bike's cubic capacity (CC) and the duration of the policy:

*Disclaimer: The annual and long-term third-party bike insurance price mentioned above is as per the IRDA.

E-Bike Insurance Premium Rates in India

The following table explains the third-party e-bike insurance prices based on the kilowatt capacity (KW) of your e-bike and the duration of the policy:

*Disclaimer: The annual and long-term third-party e-bike insurance price mentioned above is as per the IRDA.

Bike Insurance Policies 2025

At Policybazaar.com, bike insurance starts at ₹1.3/day*. Buy and compare two-wheeler insurance plans without any hassles. You can now renew your expired bike insurance policy online from the leading bike insurers with the lowest premiums in just 60 seconds.

• Quick Policy Issuance
• No Inspection, No Extra Charges
• Lowest Premium Guarantee on the Bike Insurance Plan

Here we have a table showing different bike insurance companies with their cashless garages and CSR (Claim Settlement Ratio). In all these plans, the third-party liabilities are covered, bike policy term is of minimum 1 year, and all the policies offers PA (Personal Accident) cover of up to ₹15 lakh.

*Disclaimer: The Claim Settlement Ratio (CSR*) mentioned above is as per the figures mentioned in the IRDAI motor insurance annual report 2021-22 and are arranged in alphabetical order. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

How to Calculate Bike Insurance Premium Online?

Using the below steps, you can find the estimated bike insurance premium from the bike insurance premium calculator provided by the Policybazaar:

• Step 1: Enter Your Bike Details:
  Visit Policybazaar.com and open the Bike Insurance Calculator. Select your bike’s make, model, variant, ex-showroom price, and year of purchase.
• Step 2: Provide Registration & Claim Info:
  Select your city or RTO of registration and mention whether you’ve made any claims in the previous policy term.
• Step 3: Get Instant Premium Quotes:
  The calculator will instantly show the estimated premium for your selected bike model. Moreover, it gives you an option to get various two-wheeler insurance plans from multiple insurers. Compare options based on coverage and premium, then choose the one that best fits your needs.

Factors Affecting Bike Insurance Premium

Knowing what affects your bike insurance premium can help you in making a wise decision. Here are 5 major factors: 

1. Make, Model, and Variant of the Bike 

   Usually, high-end or powerful bikes (such as sports bikes or premium bikes) have higher premiums because these are more prone to theft and their spare parts are quite expensive leading to high repair costs. 

2. Age of the Bike

   With time, the bike gets older and its value or IDV (current market value) decreases due to depreciation. It typically lowers the premium.

3. Location of Registration

   Two-wheelers registered in metropolitan areas or accident-prone locations have higher premiums. The reason being increased risks of traffic congestion, higher chances of accidents, and theft is a common problem. 

4. Type of Coverage Chosen

   Remember, a third-party bike insurance policy is the most affordable policy due to its limited coverage. On the other hand, comprehensive bike insurance policies offer broader protection along with an option to include add-ons, resulting in a higher premium. 

5. Add-Ons and Customizations

   For enhancing coverage, you can choose add-ons like zero dep cover, engine protection cover, or pillion rider cover. This will increase your premium over the base policy.

How to Save on Bike Insurance Premium?

You can save on your two-wheeler insurance premium in several ways without compromising on your policy coverage. Check some important tips to save bike premium costs:

• Claim your NCB: No Claim Bonus is rewarded for every claim-free year. You can utilize your NCB to avail discounts on your premium without reducing your coverage level.
• Know Your Vehicle's Age: Usually, older motorcycles attract lower premium rates due to lower Insured Declared Value (IDV).
• Install Safety Devices:. Most insurers will take cognizance of the safety devices you install, such as anti-theft alarm, and offer a discount on your premium.
• Choose the CC of Your Bike Wisely: Choosing your vehicle's engine cubic capacity or CC is important because a higher CC attracts a higher premium. Thus, you need to choose the engine CC wisely.
• Opt for a Higher Voluntary Deductible: Deductibles decrease the insurer's liability towards the claim amount as you pay a certain amount from your pocket. Therefore, if you opt for a high voluntary deductible, you will be offered lower premium rates.

Benefits of Buying Bike Insurance Online from Policybazaar

The motor protection laws in India protect you from expenses arising from third-party damages or own damage. Hence, get your prized possession covered and stay at peace by purchasing the right bike insurance policy.

On this note, let us look at the various key benefits of buying a bike insurance policy:

• Quick and Easy Comparison
  Here you can compare multiple bike insurance plans offered by various insurers in one place, based on the coverage, premium, add-ons, etc. Lastly, choose one that suits your needs & is within your budget. 
• 100% Digital & Paperless
  From selecting the plan to making payment and receiving your policy copy, everything happens online. You get your policy instantly via email policy details through SMS.
• Secure & Transparent Process
  Here you will get to choose verified plans from IRDAI-approved insurers, ensuring your transaction is safe, transparent, and trustworthy.
• 24x7 Customer Support
  With our dedicated customer care team is available to assist you throughout the buying, renewing, or claim settlement process.

How to Buy/Renew Bike Insurance Policy Online?

If you are looking to buy bike insurance online, Policybazaar provides a one-stop platform to compare different policies from various insurance providers in India. You can buy or renew your two-wheeler insurance online in just 60 seconds and save up to 85% costs.

Whether purchasing scooter insurance for e-bikes, hybrid bikes or regular daily commuting bikes, you can find something for your two-wheeler here.

• 20 Insurance Partners
• 24/7 Customer Assistance
• Buy or Renew Policy in just 60 Seconds
• Easy Claim Filing & Tracking

Step 1: Visit & Choose:
Visit the Policybazaar's official website and click on the ‘2 Wheeler Insurance’ option from the product list on the homepage.

Step 2: Enter Bike Details:
For renewal, enter your bike’s registration number and click ‘View Prices’.

For a new bike, click on ‘Buying a new bike?’ and fill in details like RTO, city, vehicle type, etc. Here, you’ll see multiple plans from top insurers. Compare plans, & choose your desired coverage along with add-ons, and enter your vehicle, owner, and nominee details.

Step 3: Pay & Get Policy Instantly
Make the payment online via UPI, debit/credit card, or net banking. Once successful, your policy will be issued instantly and sent to your registered email. You can also download or print it as a valid document for road use.

KYC Documents Required to Buy/Renew Two Wheeler Insurance

Here is a list of mandatory documents that you need to submit to buy or renew your 2-wheeler insurance policy:

Documents Required for Proof of Identity/Address

• Aadhar Card
• Passport
• Driving License (DL)
• PAN
• Voter ID Card issued by the Election Commission of India
• Ration Card with the photo of the applicant

How to Claim Two Wheeler Insurance Online?

If your two-wheeler meets with an accident, is stolen or suffers immense damage, you can raise a bike insurance claim against it. A 3rd party bike insurance policy will settle claims only for the damages caused to third parties, whereas OD and comprehensive bike insurance will also settle claims for damages caused to your vehicle.

At Policybazaar.com, you have two options to raise bike insurance claims: cashless and reimbursement claims.

1. Cashless Claim Settlement Process

   Opting for a cashless claim means that the claim amount will be directly settled with the network garage where the repairs are carried out.

2. Reimbursement Claim Settlement Process

   You can file a reimbursement claim if you choose to get repairs done at a non-network garage.

Steps to File Two-Wheeler Insurance Claim at Policybazaar.com

• File a FIR to the nearest police station in case your bike is stolen.
• Report the incident to your insurer.
• A surveyor will assess the damage to your bike.
• Submit the documents required for bike insurance claim, including the claim form.
• The insurer will approve the repair request.
• Take your bike to a network garage for repairs.
• The insurer will directly pay the garage for the repairs or reimburse the repair amount. You will have to pay only for the deductibles or non-covered expenses.

Documents Required for Filing Bike Insurance Claims

Ensure you have the following documents when filing bike insurance claims:

• Duly signed claim form
• Valid copy of your bike's Registration Certificate (RC)
• Valid copy of your Driving License (DL)
• Bike Insurance Policy
• Police FIR (for accidents, theft, and third-party liabilities)
• Original repair bill and payment receipt
• Proof of release

For a hassle-free online two-wheeler insurance claim process, follow these guidelines and keep all the above-mentioned necessary documents handy.

Common Bike Insurance Terms

Here is a bike insurance glossary, which includes commonly used terms in bike insurance:

1. Third-party Liability Insurance

   Third-party bike insurance is a liability insurance policy that covers damages and injuries caused to third parties by the insured bike in a road accident. As per the Indian Motor Vehicle Act, all two-wheeler owners must have this policy.

2. Own Damage Insurance

   Own-damage bike insurance or OD cover refers to a policy that protects an insured bike against damages from accidents, theft, fire, natural calamities, and malicious acts. It is an optional bike insurance policy usually purchased along with the third-party bike insurance policy.

3. Bike Insurance Premium

   Bike insurance premium refers to an amount paid to keep your coverage active, determined by several factors like type of policy, bike's age, city of registration, make, model, variant, etc.

4. Deductible

   A bike insurance deductible refers to a portion of a claim you agree to pay when settling an accidental claim.

5. No Claim Bonus (NCB)

   NCB or No Claim Bonus in bike insurance refers to a reward for not making claims during the policy period, offering discounts on your own damage premium during renewal.

6. Insured Declared Value (IDV)

   IDV or Insured Declared Value in bike insurance refers to a maximum sum assured promised by the bike insurance company in case of total loss or theft, calculated based on the bike's listed price and depreciation.

7. Policy Endorsement

   Bike insurance policy endorsement is a process of modifying or adding your policy's terms & conditions. You can quickly raise a bike insurance policy endorsement request with your insurer and make specific changes as per the requirement.

8. Policy Inclusions & Exclusions

   Bike insurance policy inclusions & exclusions refer to the covered perils and situations not covered by the insurance company in exchange for a premium. To avoid surprises during the claim settlement, you must read them carefully before purchasing the policy.

9. Add-on Covers

   Bike insurance add-on covers refer to optional covers or riders providing additional protection for specific risks which are not covered in the basic policy. Some common bike insurance add-ons are Personal Accident (PA) cover, zero depreciation cover, engine protection cover, etc.

10. Cashless Claim

    Cashless claims in bike insurance allow the policyholder to repair their damaged two-wheeler at an authorized network garage without paying any upfront payment. Here, the insurance company settles the bill directly.

11. Reimbursement Claim

    Reimbursement claim in bike insurance allows the policyholder to repair their damaged two-wheeler at their choice of garage. Here, the insurance company reimburses the amount later to the policyholder's bank account.

12. Bike Insurance Renewal

    Bike insurance renewal is the process of extending your policy beyond its expiry date. It is crucial for maintaining continuous coverage and avoiding lapses.