Bike Insurance
September 14 , 2012

Two-wheelers that are used for social, domestic, pleasure purposes and for the insured person's business or profession can be insured. If the bike is used for activities such as racing, speed testing, transporting goods, tuition, it will not be covered by the insurance policy under Indian Motor Tariff.


Insurance premiums of used vehicles are higher than those of new vehicles. A three wheeler designed for use by physically handicapped is considered as two wheeler with side car. Two wheelers with side cars are eligible for 25% discount on own damage (OD) premiums. Premiums on two-wheelers depend on three variables: 1. IDV, 2. Cubic capacity and 3. Geographical zones. 

1. IDV

Every vehicle is insured at a value arrived at by accounting for depreciation in the manufacturer's selling price, known as insured declared value (IDV).

2. Cubic capacity

Minimum premium for bikes and scooters based on cubic capacity is as under:

Cubic Capacity

Minimum Value

Not exceeding 150 cc

Rs.  5,000

Exceeding 150 cc but not exceeding 350 cc

Rs.  6,000

Exceeding 350 cc

Rs.  7,000

3. Geographical zones

Depending on the location of office of registration of vehicle, the entire country falls under the following two zones for the purpose of rating:

Zone A - Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune

Zone B - Rest of India

Premiums differ according to the zones.


Bike insurance covers the vehicle against loss or damage due to natural calamities, fire, explosion, self-ignition and man-made calamities including theft, riot, accident by external means and so on.

Motor insurance has two components - own damage (OD) cover and third party liability cover. By Indian laws you cannot ride a vehicle on the roads unless it has a third party liability cover. While OD makes good any loss or damage to the insured vehicle, third party liability covers against damage or loss caused to others by the insured vehicle. Most insurers offer comprehensive cover that includes OD and third party liability. It is mandatory for own drivers to have a personal accident policy. This too is offered in the comprehensive policies.

Bike/scooter insurance does not cover wear and tear of vehicle, which would be typically called as maintenance expenses. Similarly if damage is owing to electrical/mechanical breakdown, the insurer is not liable to pay. If the vehicle is used for other purposes as mentioned in the first paragraph, you cannot claim insurance. If the vehicle was being driven by a person without a valid license, or while under the influence of alcohol or drugs, the insurer is not liable to pay.

Where you can buy bike insurance

Two wheeler insurance is offered by most general insurance companies that offer motor insurance. If it is a new vehicle, chances are the dealer will provide insurance cover with the insurer he has tie-up with. In case of used vehicles, if the previous owner had insured the vehicle the same can be transferred to the new owner within the period of validity of insurance.

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