Two Wheeler Insurance is also known as bike insurance. It is an insurance policy under which any damage that happened to your Two Wheeler (bike or scooter) is covered by your insurance provider.
These accidents include theft, traffic accidents, or natural disasters. Under a Two Wheeler Insurance company, the insurance provider covers against the third-party liability that may occur due to injuries to individuals. Bike insurance is an ideal choice to cover the financial cost if something happens to your bike or scooter.
Bike Insurance: What is it?
Under the Motor vehicle act 1988, the government has made third-party motorbike insurance compulsory for bike-owners. This insurance policy covers any cost that has occurred due to an accident while driving a Two Wheeler on road.
It includes accidental injuries and damage to the bike or scooter. You can also renew your bike insurance online and save yourself from unnecessary penalty fees.
Bike Insurance: Reasons to buy it online
Here are some reasons to explain why you should buy a Two Wheeler Insurance policy online –
No extra charges: Buying Two Wheeler Insurance online can help you save additional charges.
No need for an old insurance policy statement: when you buy your motorbike insurance online, you do not have to furnish the details of your insurance policy (90 days or more old).
Avoid Documentation and Inspection: You do not have to go through any documentation process or inspection.
Get your expired policy renewed: It is easy to renew an old motorbike insurance policy online.
Fast claim settlement: you can quickly settle your claims online.
Bike Insurance: why is it important to have one?
There are many reasons for you to purchase bike insurance, some of the important reasons to buy bike insurance are given below –
Natural Disaster
In case of floods and earthquakes, if your Two Wheeler is damaged then you can cover the financial loss with the help of your insurance provider.
Third-party coverage
This coverage is mandatory for all policyholders. In this coverage, your insurance company protects against any injury or harm caused to the third party. Also, the policyholder is exempted from any kind of legal obligation towards the third party.
Personal protection
The policyholder is covered under his/her bike insurance company in case he/she suffers from any injuries caused by bike accidents. The bike insurance amount differs for different accidents.
Made Compulsory
Indian law has made it compulsory for bike or scooter owners to have motorbike insurance. The insured is obliged to have third-party insurance.
Financial Coverage
Bike insurance is like a shield that protects the insured against any additional financial strain after an accident.
Man-made disaster Cover
Man-made disasters such as robbery, theft, terrorist attacks, riot, transit damage, rail are covered by Two Wheeler s insurance companies.
Bike Insurance: Types
There are two types of bike insurance policies offered by the major insurance providers in India. These are explained below-
Third-Party Bike Insurance
In case you cause damage to a stranger or property of someone else while riding a bike, a third-party insurance policy will cover the damage on your behalf. The third-party investment exempts you from any liabilities on accident.
Third-party insurance also ensures that any injuries that occurred to the third party are resolved. These injuries also include the death of a third party.
Third-party insurance is made compulsory under the Motor Vehicle act 1988, which states that any person who owns a Two Wheeler must have Third-party insurance to avoid any punishment by law.
Comprehensive Bike Insurance
Comprehensive bike insurance covers every possible damage that can happen to the Two Wheeler and the owner. This includes robbery, theft, damage due to accidents, natural disasters, fire, man-made disasters, third-party coverage, etc.
A comprehensive bike insurance policy also covers any damage that happened to the bike owner in case he/she received any injury due to the accident.
The mentioned table has the major difference between third-party insurance and comprehensive bike insurance –
| Features of Bike Insurance | Third-Party Bike Insurance | Comprehensive Bike Insurance |
| Coverage scope | Narrow | Wide |
| Third-Party Liabilities | Covered | Covered |
| Personal damage cover | Not covered | Covered |
| Own damage cover | Not available | Covered |
| Premium | Low | High |
| Mandatory by Law | Yes | No |
Best Bike Insurance Plans in India
Some of the major insurance providers who offer comprehensive and third-party bike insurance to the bike owners –
| Two Wheeler Insurance Company | CashlessGarages | Third-party cover | Personal AccidentalCover | Incurred Claim Ratio | Policy Term(Minimum) |
| Bajaj Allianz | 4500+ | Available | INR 15 Lakh | 62 % | 1 year |
| Bharati AXA | 5200+ | Available | INR 15 Lakh | 75 % | 1 year |
| Digit | 1000+ | Available | INR 15 Lakh | 76 % | 1 year |
| Edelweiss | 1500+ | Available | INR 15 Lakh | 145 % | 1 year |
| IFFCO Tokio | 4300+ | Available | INR 15 Lakh | 87% | 1 year |
| Kotak Mahindra | Available | Available | INR 15 Lakh | 74% | 1 year |
| SBI | Available | Available | INR 15 Lakh | 87% | 1 year |
| TATA AIG | 5000 | Available | INR 15 Lakh | 70 % | 1 year |
| Liberty | 4300+ | Available | INR 15 Lakh | 70 % | 1 year |
| Oriental | Available | Available | INR 15 Lakh | 112.60% | 1 year |
Bike Insurance: Benefits
When we ride a Two Wheeler, there are chances that we may face an accident due to many reasons. The bad condition of roads, traffic or the wet and slippery road can cause problems with our Two Wheeler.
The Indian government has made it compulsory for bike owners to have third-party insurance. However, there is more to it. With the help of bike insurance, one can cover all the damage under the comprehensive insurance policy. Here are some benefits of buying a Bike Insurance Policy-
Financial coverage: Accidents can be big or small. Small accidents do not cause much financial burden but uncertain accidents like theft or natural disaster or a traffic accident can put a financial burden on us. With the help of comprehensive insurance, you can cover these financial emergencies easily. Your bike is repaired by the insurance provider.
Accidental Injuries: Bike insurance policies also offer personal coverage to the owner in case of any accidental injuries alongside the vehicle.
Any kind of Two Wheelers: A bike insurance policy covers all kinds of Two Wheeler s available in the market. It includes a motorbike, scooter, and moped. It covers all the damage that has occurred to these vehicles.
Spare Parts cost coverage: Accidents can happen to anyone on the road. It can lead to an extra burden on the pocket of the owner. Bike insurance covers the cost of spare parts that may need to be changed. The cost of these spare parts can be very much seeing the demand rise in Two Wheeler s.
Roadside Assistance: in case you get a flat tire or towing or minor repairs, your insurance provider will come to your aid. You must choose this service while purchasing your insurance company.
Peace of Mind: Bikes and Scooter repairing can lead to a financial burden. With the help of a bike insurance policy, you do not have to worry about the repair cost. You can leave all the unwanted repair costs to your insurance company.
Bike Insurance: Key features
Bike Insurance comes with many features that can benefit the insured immensely. Insurance companies offer many new features to policyholders. At present, one can also purchase bike insurance online. Here are some of the common features of a Bike insurance policy –
Choose between comprehensive or liability coverage: You can select the type of coverage you want under an insurance policy. There are two options for the policyholders to buy from; Comprehensive coverage and liability coverage. The liability coverage is made mandatory by the Indian government for the Two Wheeler owners.
Comprehensive bike insurance has a wider range of coverage. It provides coverage against damages that occurred to the vehicle and personal coverage for the policyholder against any accidental injuries. It also covers the co-riders and third-party coverage.
Mandatory Personal accident coverage (15 lakh): One of the inbuilt features of a Bike insurance policy is personal coverage (INR 15 Lakh). This amount has been made mandatory by the IRDA. Earlier, the personal coverage amount was 15 Lakh.
Optional Coverage: Extra coverage may cost an extra amount but it helps the insured in the process of claim settlement. This extra coverage includes the cost coverage of spare parts, personal coverage for pillion riders, zero depreciation coverage, etc.
No Claim Bonus: If you do not make any claim with your current bike insurance then all the benefits under this will be transferred to you in case you buy a new vehicle. Remember, the no claim bonus is presented to the owner of the vehicle and not the vehicle itself. There are other benefits such as healthy traffic practices that are recognized under NCB.
Discounts: Bike insurance policies come with many additional discounts that can benefit you. Such discounts include being a member of a reputed automotive association, Vehicles that have certified anti-theft devices. You also receive concessions if you have a clean driving history.
Online purchase/renewal: The online purchase or renewal of your bike insurance policy saves your time. The process is more convenient and simpler. You can visit the official website of your insurance provider to renew or purchase bike insurance. Some insurance providers also offer apps to manage their policyholders’ bike insurance.
Bike Insurance: Document requirement
Here is the list of the documents required to purchase an insurance policy online –
- Identity Proof issued by the Government of India. (Aadhar card, Voter ID, Ration Card, Passport, Driving License)
- Bike’s registration certificate
- Old Policy Number to get the benefits through NCB
- Address Proof (Passport, Voter ID, Aadhar card)
Bike Insurance: Add-on covers
Add-on covers mean the additional coverage provided to the insured to improve the coverage of their bike insurance policy. Here are some add on cover benefits:
Zero Depreciation Cover
Your insurance company covers the claim amount after calculating the depreciation value of your vehicle. The zero-depreciation cover excludes any deduction based on Depreciation during claim settlement. After that, the insured receives the claimed amount.
No Claim Bonus
No claim bonus is provided to those policyholders who have not made any claim under their bike insurance policy. With the help of a claim bonus, you become eligible for additional rewards and discount offers.
Emergency Assistance Coverage
Under this feature, you can ask your insurance company to aid you in emergency circumstances such as flat tire, battery jump-start, minor repairs, towing, replacement of key and fuel, lost key assistance, etc.
Daily Allowance coverage
This add-on cover is for those circumstances when the vehicle of the insured is under repair. You will get a daily allowance to travel until your vehicle is repaired. The one condition is that the repair must be done at one of the network garages.
Return to Invoice Coverage
If you have faced a total loss, then your insurance company will provide you with the Insured declared value. This is based on the claimed amount by you at the purchase time of the policy.
Helmet Cover
The add-on services also include the replacement or repair of the helmet if it was damaged in an accident. The replaced hamlet is provided in the same model.
EMI Protection
Under this feature, the insurance company covers all the EMIs for the time being. The repair should be done at an authorized garage.
Bike Insurance: What is covered
Here is the important list of coverage under a Bike Insurance Policy-
The loss occurred due to Natural disasters
Any loss that has happened to the insured due to natural disasters is covered under bike insurance. It includes floods, hurricanes, lightning, typhoons, hailstorms, landslides, rockslides, etc.
The loss occurred due to a Man-made disaster
It covers accidents that are caused by humans such as strikes, riots, terrorist activity, air, malicious actions, road transit, inland waterway, rail, elevator, etc.
Own Damage Coverage
Any damage happened to the vehicle due to different reasons such as man-made disasters, fire, natural disasters, explosions, robbery, or theft.
Personal Accident Coverage
This cover includes any personal injuries/disability that occurred to the vehicle owner during driving, mounting, or dismounting his/her vehicle. A personal coverage of INR 15 Lakh has been made compulsory by the government. The accident coverage also covers the co-rider.
Burglary or theft
In case your vehicle gets stolen, you can claim compensation from your insurance provider.
Third-Party Liability
One of the most important features of bike insurance coverage is that it also covers any legal cost that occurred due to an accident with a third party. It covers the death of the third party in that accident. A third-party property is also included in a bike insurance company.
Bike Insurance: What is not covered
Here is the list of things that are not covered under a bike insurance policy –
- A normal scratch or tear on the vehicle
- Electrical or mechanical issues
- Consequential or depreciation loss due to constant use
- Tire or tube damage in a normal situation
- Any topic that is not covered under your bike insurance policy
- The loss occurred due to an invalid driving license
- Any damage to the vehicle under intoxication
- Any vehicle damage or loss occurred due to mutiny or war or nuclear war.
Bike Insurance: How to Claim it online
There are two ways to claim the insurance benefits online-
Cashless Claim: In case you opt for the cashless claim, then your insurance company will settle the bill with their network garage directly. This facility is only available when you are at the network garage of your insurance provider.
Reimbursement Claim: in such a case, if you are repairing your bike at a garage that is not in your insurer’s network, you can claim reimbursement. At the time of repair, you need to pay the cost but after you can reclaim the spent amount.
Bike Insurance: Claim Settlement
Here is the process for the claim settlement under your bike insurance –
Cashless Claim
- In case of an accident, inform your insurance provider
- Your insurer will survey to estimate the cost of damage
- You must fill a claim form and submit it with the necessary documents
- Approval of the insurance provider
- Repair your vehicle at a network garage
- Your insurance provider will settle the bill with the garage network
- You may have to pay the non-covered cost
Reimbursement Claim
- Register your claim with the insurance company
- A survey to decide the cost of damage will be done
- Submit claim form with required documents
- Repair at a garage that is not under your insurance provider’s network
- Pay the bills
- Submit proof in form of receipts, payments, and bills to your insurer
- After approval by the insurer, you will be paid the amount
Bike Insurance: Documents required for claim settlement
Here is the list of documents required for claim settlement-
- Claim form with your signatures
- Registration certificate copy or RC
- Driving License Copy
- Policy copy
- Police FIR (for accidents, third-party coverage, and theft)
- Bill and receipts
- Proof of release
Bike Insurance: Process to renew your bike insurance
Here is the process to renew your bike insurance online –
- Visit the website and select the renewal form
- Provide Bike registration number and other asked information
- Choose the bike insurance plan
- Update your IDV
- Pay the required premium
For the offline process of renewal of your bike insurance, you need to visit the nearby office of your insurance provider. Carry all the valid documents with you.
Bike Insurance: Renew Expired Bike Insurance
Here are some ways to renew your expired insurance policy –
Change your insurance provider
You can change your insurance provider in case you were not happy with your recent insurer. You can review your insurance policy to meet your new requirements.
Check Online
Renewing your bike insurance policy is the fastest and easiest way. You can visit the official website of your insurance provider and feed all the details such as motorcycle model, year of manufacturing, etc. You can also select additional coverage.
Bike Insurance: factors that determine Premium Price
Here is the list of important factors that decide your premium amount-
- Coverage: How much coverage you want decides the premium charges. More coverage means more premium.
- Insured Declared Value: What is the market value of your Two-Wheeler decides the price of your premium.
- Vehicle Age: if your bike or scooter is old, you will have to pay a low premium.
- Bike Model: Basic bike models do not have much premium cost.
- Security Devices: A security device in your bike results in a low premium rate
- No claim Bonus: No claim bonus not only offers you a low premium but also many discounts offered.
- Insured age: If you are old, you will have to pay less premium.
Two Wheeler Insurance – FAQs
Q1. Is buying online bike insurance cost-effective?
Ans. Yes, buying an online bike insurance plan is more cost-effective and time-saving. You do not have to pay any additional charges. You don’t have to go through documentation either.
Q2. What happens if I do not buy a bike insurance policy?
Ans. You will have to pay a penalty fee to the government.
Q3. Which vehicles are covered under Two Wheeler insurance?
Ans. All kinds of models of Bikes, scooters, moped are covered under bike insurance policies.
Q4. What is third-party coverage in bike insurance?
Ans. A third party can be a person or a property. In case you damage someone’s property or cause injury to someone, it becomes a third-party liability.
Q5. I am still young, why is the premium price high for me?
Young people have more chances to get into accidents that is why the premium is higher.
Q6. Can I get the spare parts of my bike repaired under my insurance policy?
Ans. It depends on the type of bike insurance policy you have. In the case of comprehensive bike insurance, you can get your spare parts repaired free of cost.
Q7. Does the age of the vehicle matter at the time of buying bike insurance?
Ans. Yes, the age of the bike and the insured both matter at the time of buying the insurance policy.
Q8. Can I buy a bike insurance policy online?
Ans. Yes, you can purchase a bike insurance policy online. You must visit the official website of your insurance provider. Enter all the details and select the plan.