Updated on - 09 Feb 2026
As per the Motor Vehicles Act of 1988, all two-wheelers must have valid third-party insurance to ply on Indian roads. A standard bike insurance policy usually comes with a single-year tenure, after which vehicle owners have to renew the policy. If the policy is not renewed on time, the owner may face a fine of ₹2,000 and/or imprisonment of up to 3 months. For a repetitive violation, the bike owner may have to pay a fine of ₹4,000 along with imprisonment for the same term.
In this blog, we have mentioned the mistakes to avoid and things to remember while renewing your two-wheeler insurance to ensure that the process is as quick and hassle-free as it is meant to be.
Mistakes to avoid when renewing your bike insurance
Two-wheeler owners make a few mistakes while renewing their bike insurance policy. Listed below are some such errors which you can easily avoid:
1. Not claiming your NCB
The No Claim Bonus (NCB) is the insurance provider's reward to the policyholder for not raising a claim during the policy tenure. Often, customers forget to get this benefit at the time of renewal.
2. Overlooking the terms & conditions
Insurance providers might regularly modify their terms and conditions to abide by the regulatory changes and maintain business proficiency. You should not assume that the policy terms will remain constant.
3. Not informing the insurer about modifications
Some motorcycle enthusiasts love to customise their rides. If you also make certain modifications to your bike, you must provide the details of each modification to the insurance company at renewal. This will avoid any disputes in the event of a claim.
4. Providing incorrect details
The biggest mistake (which you can easily avoid!) is giving incorrect details while renewing your bike insurance policy. You should carefully type in the details, such as registration number, previous policy number, owner's name, etc., while applying for renewal of the policy.
5. Not assessing the add-on requirements for your insurance coverage
Some owners wrongfully assume that add-ons on a bike insurance policy are only a way of increasing premiums without any benefit. Truth be told, add-on covers significantly enhance the coverage of your bike insurance policy.
6. Stretching the renewal process
It would be best if you renew your bike insurance policy well before its expiry date. Going for the policy renewal at the last moment leaves no time for assessing your actual insurance needs and making policy changes.
Factors to consider while renewing a bike insurance policy
When renewing your two-wheeler insurance, consider the following key aspects:
- Insurance type (comprehensive vs third-party): When renewing your bike insurance, consider upgrading to comprehensive two wheeler insurance coverage if you currently only have third-party insurance.
- No claim bonus (NCB): No claim bonus for two-wheeler insurance is a discount offered by the insurer for a year when no claims are made. Missing a renewal or switching insurers may affect the bonus.
- Insured Declared Value (IDV): The Insured Declared Value (IDV) is the maximum sum assured by the insurer in the event of a total loss or theft of the vehicle. A low IDV reduces premiums but may leave you under-compensated in case of total loss.
- Claim settlement ratio (CSR): Before renewing your policy, it's a good idea to check the insurer’s CSR, which reflects the percentage of claims the insurance company has successfully settled. A higher ratio suggests smooth claim processing, which is crucial if you need to file a claim.
- Add-ons: Review the available add-ons and assess whether any additional coverage would benefit you.
- Personal accident cover: While renewing your two-wheeler insurance, check if you have a personal accident cover and purchase the same to ensure legal compliance and financial protection in case of any casualty to the owner during an accident.
How to compare different two-wheeler insurance renewal offers
To compare two-wheeler insurance renewal offers, you should check the price, coverage and add-ons. Also, consider the cost in relation to the benefits. A cheaper plan may save money initially, but could leave you under-protected.
Finally, review insurer reliability by looking at claim settlement ratios and customer feedback. Assessing all these factors together helps you choose a policy that is both cost-effective and comprehensive.
Importance of updating personal and vehicle details during renewal
Updating your personal and vehicle information when renewing your two-wheeler insurance is crucial for several reasons:
- Accurate records: Ensures your insurance documents reflect the correct owner, address and vehicle details.
- Smooth claim process: Correct details prevent delays or rejection of claims in case of an accident.
- Legal compliance: Helps you avoid penalties or legal complications due to outdated registration or licence information.
- Timely notifications: Guarantees that you receive policy-related reminders, updates or notices from the insurer.
- Eligibility for benefits: Ensures you can avail add-ons, discounts or cashback offers linked to your accurate details.
- Protection against fraud: Reduces the risk of misuse or fraudulent claims associated with incorrect or old information.
How premiums are calculated during renewal
When you renew your two-wheeler insurance, the premium is calculated based on several factors. The age and current market value of your bike play a key role, with older and lower-value bikes generally attracting lower premiums.
Your past claim history also influences the cost, making claims can increase your premium, while a no-claim bonus can reduce it. The type of coverage you choose is another factor, as comprehensive plans with add-ons like zero depreciation or roadside assistance are more expensive than basic third-party insurance.
Additionally, your bike’s primary location and usage affect the premium, since areas with higher accident or theft rates carry more risk. Finally, each insurer has its own pricing policies, so renewal costs can vary across companies.
Tips to save on bike insurance renewal premiums
Here are some ways to save on your bike insurance renewal:
- Compare different providers to find the best coverage at a competitive premium.
- Increase your deductible to lower your premium, but ensure it’s an amount you can afford in case of a claim.
- Maintain a clean riding record to benefit from lower premiums and retain your no-claim bonus.
- Utilise your no-claim bonus (NCB) to get discounts during renewal for claim-free years.
- Review your policy regularly and remove unnecessary add-ons or coverage you no longer need.
- Install anti-theft devices, as some insurers offer discounts for bikes with approved security measures.
Conclusion
When renewing your two-wheeler insurance, it’s easy to make mistakes that can cost you time, money or coverage. You should always check your policy details, avoid delaying the renewal and provide accurate information about your vehicle.
By being careful and informed, you can ensure your two-wheeler stays protected without any gaps in coverage. To avoid these mistakes, you can take advice from an expert by filling out the form provided on this page.
FAQs
1. How can I reduce the premium on my bike insurance?
You can reduce the premium on your bike insurance by opting for higher deductibles, maintaining a good claim history, installing anti-theft devices or bundling your policy with other types of insurance.
2. Is it necessary to renew bike insurance every year?
It is mandatory to renew bike insurance annually as per Indian law. If you are caught without a valid policy, it may result in penalties and other legal consequences.
3. Can I renew my bike insurance online?
Most insurers offer online renewal services. It is a quick and convenient way to renew your bike insurance without having to visit the insurer’s office.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.