Owning a two-wheeler makes daily travel easier, saves time and gives you the freedom to move around independently. But the road can be unpredictable; accidents, theft or damages can happen anytime, leaving you with unexpected expenses. Two wheeler insurance acts as a safety net, helping you handle these financial risks without stress.
This guide explains the types of policies, key benefits and how to choose the right coverage so you can ride with confidence and peace of mind.
What is two-wheeler insurance?
Two-wheeler insurance provides financial protection for your bike or scooter against accidents, theft, natural disasters or third-party liability. It is a type of general insurance and is legally mandatory if you want to drive a two-wheeler in India.
Why is two-wheeler insurance important?
Two-wheeler insurance is important because it protects both you and your vehicle. Under the Motor Vehicles Act, every bike owner must have at least third-party liability insurance or face fines and penalties.
It also shields you from financial losses. Most plans include personal accident coverage for the owner-driver, offering compensation in case of injury or disability. Insurance plans often provide access to cashless repairs at network garages and optional add-ons like zero depreciation for extra protection. Claim-free riders can also earn a No-Claim Bonus (NCB), which may reduce future premiums.
Types of two-wheeler insurance policies
When choosing a two-wheeler insurance, it helps to know the different types of policies available. Here’s a quick look at the main options:
- Third-party insurance: Mandatory for every two-wheeler owner. It provides financial and legal aid if your vehicle causes damage or injury to another person or property.
- Comprehensive insurance: Includes third-party coverage along with protection for your own vehicle against accidents, theft or natural disasters.
- Short-term two-wheeler insurance: Valid for one year and must be renewed annually. Policyholders may earn a No-Claim Bonus for every claim-free year.
- Long-term two-wheeler insurance: Offers multi-year coverage with a fixed premium. This plan reduces the need for yearly renewals, protects against premium hikes and still allows you to benefit from No-Claim Bonus.
Note: Coverage features and eligibility criteria may vary by insurer. Please read the policy wordings for complete details.
Key features and benefits of two-wheeler insurance
Two-wheeler insurance offers several important features and benefits. Third-party liability cover protects you if your vehicle causes damage to another person or property, while own damage cover takes care of expenses for repairing or replacing your own vehicle.
Personal accident cover provides financial compensation for the owner-driver in case of injury or death. Claim-free years may earn a No-Claim Bonus (NCB), offering discounts on premiums and encouraging safe driving.
Policies also allow add-on flexibility to enhance coverage, provide legal and financial security against unexpected expenses and offer ease and convenience through cashless repairs at network garages and smooth digital claim settlements.
Note: Benefits and add-ons may differ between insurers. Please read the policy wordings for complete inclusions/exclusions.
Factors that affect two-wheeler insurance premium
Several factors determine the premium you pay for two-wheeler insurance. The type of coverage plays a key role, as comprehensive policies have higher premiums compared to third-party insurance, which only covers damage to others.
Your bike model and engine capacity also matter, with high-end or high-cc bikes attracting higher premiums due to costlier parts and repairs. Rider profile, including age and driving experience, affects rates, as experienced riders with a clean record often enjoy lower premiums. Add-on covers improve protection but may increase the premium slightly.
Security features like anti-theft devices can lower premiums, while opting for a voluntary excess can also reduce costs. Claim-free years earn a No-Claim Bonus (NCB), which may provide up to a 50% discount on the premium over time.
Note: Premiums and discounts vary across insurers. Always check your policy terms before purchase.
Step-by-step guide to buying two-wheeler insurance online
Purchasing bike insurance online is a quick and secure process if you follow all the right steps:
- Identify your coverage needs: Decide whether you need a third-party policy for basic legal compliance or a comprehensive plan covering both own and third-party damages.
- Visit the insurer’s website: Go to the official website of your preferred insurer and navigate to the bike insurance section. Most insurers offer a guided, user-friendly online process.
- Enter basic details: Fill in your bike registration number and personal information accurately.
- Choose your policy and add-ons: Select the coverage type, set the Insured Declared Value (IDV) and include add-ons if required.
- Complete the payment: Pay the premium online and receive your policy instantly via email.
How to renew your two-wheeler insurance policy
You can renew your two-wheeler insurance policy either online or offline. For online renewal, visit your insurer’s website, select the renewal option, enter details such as your vehicle registration number and complete the payment. For offline renewal, you can visit the insurer’s office and pay the fixed premium directly.
Documents required for two-wheeler insurance
Having the right documents ensures smooth processing and renewal of your two-wheeler insurance. You will need a valid identity proof such as an Aadhaar card, voter ID, ration card, passport or driving license.
The vehicle’s Registration Certificate (RC) is required to confirm its legality. Passport-size photographs are needed for identification purposes, and an address proof, which can be your Aadhaar or voter ID, must also be submitted.
Add-on covers you can opt for
Add-on covers enhance your two-wheeler insurance by providing extra protection beyond standard coverage. Zero Depreciation Cover pays for the full repair or replacement cost of bike parts without considering depreciation.
Personal Accident Cover offers financial compensation to the insured or their family in case of accidental injury, disability or death. Passenger Cover extends accident protection to the pillion rider. Helmet Cover covers the cost of repairing or replacing a damaged helmet and its parts after an accident.
Accessories Cover protects electrical and non-electrical accessories from damage caused by accidents or natural calamities.
Note: Add-on coverage, limits and eligibility may vary by insurer. Please check policy wordings for complete details.
How to file a two-wheeler insurance claim
To file a bike insurance claim, first take the policy details from the opposite party and inform your insurer about the third-party claim. The insurance company will forward your case to the Motor Insurance Claims Tribunal for a verdict.
After hearing from both parties, the tribunal will determine the compensation amount to be paid. The insurer will then transfer the approved compensation directly to your bank account.
Steps to file a claim under the OD cover
- Inform your insurance provider immediately.
- Submit the required documents to raise the claim; file an FIR at the local police station if needed.
- A surveyor will be appointed by the insurer to verify the case and assess the damages.
- If the claim is approved, the surveyor will notify the garage to start the repair work.
- For cashless claims, expenses are settled directly between the insurer and the garage.
- For reimbursement claims, the repair amount is transferred to your bank account via NEFT.
Steps to file a claim in case of theft
- Inform the insurer immediately about the theft of your bike.
- File an FIR at your local police station. This step is mandatory in this case.
- Submit the relevant documents to the insurer to file the claim.
- Obtain a non-traceable certificate from the police and submit it to the insurer.
- The insurer will transfer your bike's IDV to your bank account.
Common exclusions in two-wheeler insurance
Two-wheeler insurance generally does not cover damages caused by drunk driving, riding without a valid licence or participating in illegal racing or speed trials. Accidents occurring outside the geographical area specified in your policy may also be excluded.
Regular wear and tear, as well as damage resulting from negligence, are typically not covered. Consequential damages, such as engine damage caused by riding with oil leakage, are also excluded unless you have opted for specific add-on protection.
Note: This is indicative. Please read the policy wordings for the complete list of inclusions/exclusions.
Conclusion
Two-wheeler insurance is more than just a legal requirement; it’s a crucial safety net that protects you, your vehicle and your finances from unexpected events on the road. Choosing the right plan, such as a comprehensive bike insurance, ensures you are covered for accidents, theft and damages while giving you peace of mind every time you ride.
To make the most of your coverage and avoid last-minute stress, get personalised guidance today. Fill out the form on this page to receive expert two-wheeler insurance advice tailored to your needs and make informed decisions for yourself and your loved ones.
FAQs
1. Can one transfer their Non-Claim Bonus if they sell their bike?
The ability to transfer your No Claim Bonus (NCB) depends on the insurer and the type of policy. It’s best to check your policy terms or speak with your insurer to confirm.
2. How does the location of registration affect two-wheeler insurance premiums?
Premiums generally vary depending on where your bike is registered, as urban areas with higher traffic and accident rates often attract higher premiums than smaller towns or rural locations.
3. What happens if my two-wheeler insurance policy lapses?
If your policy expires, your bike is no longer legally covered and you may face penalties under the Motor Vehicles Act.
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.