Two Wheeler Insurance
What Is Two-Wheeler Insurance / Why It’s Needed
As per the Motor Vehicles Act, every two-wheeler used on Indian roads must have at least third-party liability insurance. This covers damage or injury caused to others (people or property).
Beyond third-party cover, you can also insure damage to your own bike (own-damage), theft, natural disasters etc.
Insurance protects against financial loss from accidents, thefts, natural or man-made calamities, etc.
Types of Policies / Coverage Options
Here are the main policy types and optional add-ons:
| Type | What It Covers | |
|---|---|---|
| Third-Party Liability Insurance | Covers injury or death to other persons, or damage to someone else’s property caused by your bike. Mandatory by law. Does not cover your own bike. | |
| Comprehensive (or Package) Insurance | Includes third-party liabilities + own-damage to your bike + often add-ons (theft, fire, natural disaster etc.) | |
| Add-Ons / Riders | Optional cover enhancements, e.g.: zero depreciation, engine protection, roadside assistance, personal accident cover (owner/driver), loss due to natural calamity etc. |
What Affects the Premium (Cost)
These are the major factors that insurers use to determine how much you’ll pay:
Engine capacity (cc)
Bikes with higher cubic capacity cost more because the risk and repair/parts cost is higher.Insured Declared Value (IDV)
This is basically the current market value of the bike (after depreciation) which insurer will pay in case of theft or total loss. Higher IDV → higher premium.Age of the bike
Newer bikes cost more in premium (since parts are new, repair costs higher). With older bikes, IDV goes down, though very old bikes might attract higher cost for own-damage due to difficulty in finding parts.No-Claim Bonus (NCB)
If you don’t make claims for previous years, you get discounts on renewal. Can reduce premium significantly.Location / City
Where the bike is registered matters: metros / high traffic / higher theft rates usually lead to higher premium.Modifications or Accessories
If you have added custom parts, enhancements, performance accessories etc., these increase risk & cost. You need to disclose them.Anti-theft / Safety Devices
Features like locks, GPS trackers, alarm systems, etc., especially if certified by ARAI, can reduce premium.Add-ons chosen
Adding zero-depreciation, engine protection, roadside assistance etc. increases the premium. But gives more protection.Rider history / Experience / Age / Gender etc.
Some insurers factor in the rider’s age, riding experience, previous claims etc. Younger or less experienced riders may pay more.
IRDAI / Regulatory Aspects
IRDAI (Insurance Regulatory and Development Authority of India) fixes or guides certain rates, especially for third-party liability cover.
There are long-term third-party insurance policies for new two-wheelers. For example, 5-year TP policies are mandatory/standard for many new bikes.
What’s Not Covered / Common Exclusions
Damage due to wearing out, mechanical or electrical breakdowns not caused by accidents.
Intentional damage, misuse, driving without license, violations.
Sometimes parts are depreciated unless a “zero depreciation” add-on is taken.
Non-ARAI approved modifications may not be covered.
Tips to Optimize / Choose Good Two-Wheeler Insurance
Compare quotes from multiple insurers (online portals help).
Keep high IDV only if you believe the resale/theft risk warrants it; else balance so premium is affordable.
Make full use of No Claim Bonus — avoid small claims unless necessary.
Add useful riders rather than many low-use ones.
Install approved anti-theft devices.
Read policy documents carefully to know what’s covered / excluded.
Renew on time to avoid lapse; sometimes renewing late increases cost or causes issues.