In keeping with changing requirements, the ever-increasing number of two-wheelers on Indian roads and rising cases of accident and uninsured bikes, the apex insurance regulator IRDAI makes changes in vehicle insurance rules and regulations from time to time.

While you would know that it is compulsory to have bike insurance, you may not be aware about the latest updates about buying two-wheeler insurance. One of the points that will come up when you go to buy bike insurance is about a long-term 5 year policy. Is it compulsory for all two-wheelers to be covered with a 5 year bike insurance policy? How does it compare with a standard 1 year bike insurance? How will it affect the premium I pay and my policy coverage?  

This article is about answering all such questions and clearing any confusion in your mind about 5 year two-wheeler insurance.

About 5 Year Two-Wheeler Insurance & How It Works:

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. This has been done to ensure that maximum number of two-wheelers remain insured and also to minimise incidents of lapsed, expired policies and uninsured vehicles.

Note that a 5 year cover is mandatory only for third-party (TP) bike insurance policies. Having third-party insurance is anyway compulsory for all vehicles as per the Motor Vehicles Act, 1988.  

If you have just bought a brand new scooter or bike and decided to go with basic third-party bike insurance, you will necessarily have to buy a 5 year insurance policy. But if you choose to purchase comprehensive two-wheeler insurance for your new bike, then your policy tenure will be 3 years and not 5 years.