Two wheeler insurance explained in simple words: cover types, add-ons, NCB, claims and renewal for bike and scooter owners. Get a quote from Insurance Kro.
Two wheeler insurance is a policy that protects you and your bike or scooter from money loss after an accident, theft, fire or other damage. In India, at least a third-party policy is compulsory for every two-wheeler on the road. A comprehensive policy gives you more, because it also pays for damage to your own vehicle.
This guide explains the basics in simple words, so you can pick the right policy and avoid common problems.
What two wheeler insurance covers
A two-wheeler policy can have up to three parts:
- Third-party cover: pays for injury, death or property damage to another person. Injury and death liability is unlimited. Property damage liability is limited to ₹7.5 lakh.
- Own damage cover: pays for damage to your own bike from accident, fire, theft, natural calamities like flood and earthquake, and man-made events like riots. This is as per your policy terms.
- Personal accident cover: a compulsory ₹15 lakh cover for the owner-driver. It applies only to the owner-driver, and it may not be needed if you already hold a similar cover.
A third-party policy does not pay for damage to your own bike. For that, you need own damage cover. Read more about the third-party insurance and comprehensive insurance options on our site.
Types of two wheeler policy
There are three common choices.
- Third-party only: the minimum the law needs. It is lower in cost, but you pay for your own bike repairs.
- Comprehensive: third-party cover plus own damage cover. You also get the option to add extra covers.
- Long-term cover for new bikes: new two-wheelers usually get a 5-year third-party cover. Own damage is usually sold one year at a time, though some insurers may offer a longer option. Our post on new bike insurance with a 5-year third-party cover explains this in detail.
Why it is compulsory, and what IDV means
The Motor Vehicles Act, 1988 says every vehicle on Indian roads must have third-party insurance. If you ride without valid insurance, the fine is ₹2,000 and/or up to 3 months in jail for a first offence. For a repeat offence, it is ₹4,000 and/or up to 3 months. You can read the details in our post on the penalty for riding without insurance.
Apart from the law, insurance protects you from big bills. If you hurt someone in an accident, the third-party part handles the claim, so you do not pay it from your own pocket.
Another key term is IDV. It means Insured Declared Value. It is the current market value of your bike, as agreed with the insurer. It is roughly the maker's listed price minus depreciation for the age of the bike.
IDV is the most your insurer pays if your bike is stolen or totally damaged. A very low IDV can mean a low pay-out. Check it before you buy or renew.
Add-ons you can choose
Add-ons are optional covers you pay extra for. Common ones are:
- Zero depreciation
- Roadside assistance
- Engine protection
- Return to invoice
- Consumables cover
- Key and lock replacement
- NCB protection
- Tyre protection
- Battery cover for electric bikes
Terms differ by insurer, so check the policy wording. Zero depreciation is usually for newer vehicles and often has a limit on the number of claims per year. See our guide on zero depreciation bike insurance to know if it suits you.
No Claim Bonus (NCB)
NCB is a discount on the own-damage part of your premium for every claim-free year. The usual slabs are 20% after 1 year, 25% after 2, 35% after 3, 45% after 4 and 50% after 5 or more claim-free years.
NCB belongs to you, not to the bike. It is usually kept if you renew on time. If you make a claim in a year, you usually lose the NCB for that year. It does not apply to the third-party part. Learn more about the no claim bonus and how to protect it.
How to claim
Claim steps are usually simple:
- Inform your insurer as soon as you can. Also inform the police for theft, a major accident, third-party injury or death, or a riot.
- Do not repair or move the bike beyond what is needed before the survey.
- The surveyor checks the damage.
- Send the documents the insurer asks for.
- Repair the bike and settle the claim.
In a cashless claim, you repair at a network garage and the insurer pays the garage directly. You pay for non-covered items and the deductible. In a reimbursement claim, you pay first and then claim the money back with bills. Our claim support page can guide you through this.
Renew on time
If your policy expires, your bike is uninsured from the next minute. The insurer may ask for an inspection before renewing, and you may lose your NCB after a long gap. Set a reminder and use our renew vehicle insurance page well before the expiry date.
Rules can change and differ by insurer, so your policy document is always the final word. When you are ready, you can get a quote for your bike or scooter.
FAQs
Is two wheeler insurance compulsory in India?
Yes. At least third-party insurance is compulsory for every two-wheeler under the Motor Vehicles Act, 1988.
Does a third-party policy cover my own bike?
No. It pays only for injury, death or property damage to another person. For your own bike, you need own damage cover through a comprehensive policy.
Can I buy insurance for a scooter in the same way?
Yes. Bikes and scooters are both two-wheelers, and they are insured in the same way.
What happens if I let my policy expire?
Your bike is uninsured from the next minute. The insurer may ask for an inspection, and you may lose your NCB after a long gap.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.