Updated on - 09 Feb 2026
If you own a two-wheeler, you might wonder whether insurance is really necessary, especially for a longer period like five years. The truth is, having insurance for your bike or scooter isn’t just a legal formality; it protects you from unexpected financial burdens in case of accidents, theft or damage. However, how long should you keep it? Is a five-year two wheeler insurance coverage mandatory, or can you choose a shorter period?
Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. As for your old bikes, you have the freedom to choose a single or multi-year policy.
Why is bike insurance mandatory for 5 years?
The 5-year bike insurance is made mandatory to reduce the number of uninsured bikes on the road. This will provide long-term protection to the two-wheeler without the need to renew it annually.
Impact of 5-year bike insurance on the claim settlement process
A 5-year bike insurance policy can simplify your claim process. Insurers often process claims faster for long-term policyholders, as their risk profile reflects consistent coverage. This makes settlement smoother, more reliable and stress-free for bike owners.
How does a 5-year bike insurance policy work?
A 5-year bike insurance policy provides long-term coverage, eliminating the need for yearly renewals. You pay the premium once and enjoy continuous protection for five years. With hassle-free renewals and fewer chances of missing deadlines, this policy is both convenient and cost-effective, giving bike owners peace of mind for the entire tenure.
Benefits of a 5-year bike insurance policy
Having a 5-year or long-term two-wheeler insurance cover can have many advantages.
- You will save on premiums – When you take up a 5-year two-wheeler insurance policy, you make a one-time premium payment, and the policy stays valid for 5 years.
- You won’t have to bother with yearly policy renewal – Since your long-term policy will be valid for a period of 5 years, you need not bother with remembering to renew your two-wheeler insurance every year.
- You can save your No Claim Bonus – In a 5-year-long-term bike insurance policy, the NCB does not become nil and void. It just reduces to the previous percentage slab, so that you still get the benefit of No Claim Bonus in Bike Insurance
- You get a refund if the policy is terminated – Just like you do not lose the entire no-claim bonus when making a claim, a 5-year long-term two-wheeler insurance policy also ensures that you do not lose your entire premium in case of termination.
Types of bike insurance policies available in the market
You can choose from different bike insurance policies. Comprehensive bike insurance covers damage to your bike and third-party liabilities. Third-party insurance only covers damages to others. Own-damage coverage protects your bike from accidents, theft, or natural events.
How is NCB calculated on a 5-year policy?
In the context of 5-year bike insurance, if a policyholder does not make any claims during the entire 5-year term, they become eligible for a significant NCB discount on the premium when renewing or purchasing a new policy. However, if a claim is made during the policy period, the NCB is typically reduced to the previously applicable slab rather than being entirely forfeited, allowing policyholders to retain some of the discount benefits.
Things to keep in mind before opting for a bike insurance policy
When choosing bike insurance, you should check the type of coverage; third-party liability is mandatory, while own damage coverage protects your bike. Pick a reputable insurer, read inclusions and exclusions, compare premiums, check if NCB can be transferred, and consider useful add-ons like roadside assistance or engine protection.
Role of third-party vs comprehensive insurance in a 5-year policy
The role of the third-party insurance v/s comprehensive insurance in a 5-year policy:
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Insurance type
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Role in 5-year policy
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Third-party
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You are covered only for damages you cause to others. It costs less, but you won’t pay for your own vehicle repairs.
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Comprehensive
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You are covered for both your car and others’ damages, including theft, fire, and accidents. It costs more but gives you full protection.
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How to transfer your 5-year bike insurance when selling the vehicle
When you sell your bike, you can transfer your 5-year insurance to the new owner. Contact your insurer, provide the buyer’s details, and complete the transfer form. This keeps your policy active and protects both you and the buyer.
Conclusion
Two-wheeler insurance is mandatory for 5 years from the date you buy a new vehicle. This is required by law to protect you, other people, and their property in case of accidents. Even if your bike or scooter is in perfect condition, you must have valid insurance at all times. Without it, you risk fines, legal trouble, and financial loss. Getting insured ensures that you are covered for damages, theft, or third-party liability. So, make sure you renew your policy on time to stay financially protected, or you can take the help of an expert by filling out the form on this page and get your suitable plan details.
FAQs
1. Is two-wheeler insurance mandatory for five years?
You must have at least third-party insurance for your two-wheeler every year, and it is mandatory for five years from the date of registration.
2. Can I ride my two-wheeler without insurance in the first five years?
You cannot ride without insurance, because you are legally required to have coverage during the first five years.
3. What happens if I don’t have two-wheeler insurance within five years?
If you don’t have insurance, you may have to pay a fine and could face legal trouble if you ride your bike.
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.