Two wheeler insurance

Two wheeler insurance or bike insurance is a plan that protects the bike owner against possible losses in case of accident, theft or natural calamity. Currently, third party two wheeler insurance policy is mandatory under the Motor Vehicle Act 1988.
Buying bike insurance is advisable as it will help you cover any unforeseen expenses incurred due to accidents, natural calamities or damage to your two wheeler due to third party accidents or liabilities.

What is bike insurance?

About Two Wheeler Insurance

A two wheeler insurance policy helps provide financial coverage against loss or damage to you or your vehicle.

Without a valid bike insurance policy, you will have to bear all the financial burden due to any loss or damage caused to your two wheeler.

Why two wheeler insurance is necessary in India?

According to the Indian Motor Vehicles Act, 1988, all motor vehicles plying on Indian roads must have a valid insurance policy. It is illegal to ride your two wheeler on Indian roads without third party liability cover. Liability cover is mandatory for riding your bike on Indian roads.

Having an insurance policy is important and necessary as it provides financial protection against unfortunate accidents resulting in damage to the insured vehicle or third party property, physical injury to the passenger or rear seat passenger or pedestrian etc.

With two wheeler insurance policy

You will bear no financial stress: Two wheeler insurance policy provides financial cover in case of theft of your vehicle or any damage to your vehicle.

You are legally protected: Since having an insurance policy is mandatory for riding on Indian roads, it is advisable to carry a photo copy of a valid insurance policy to avoid paying fines.

You will get Personal Accident Cover: In case of accidental death or total permanent disability, the two wheeler policy holder will get Rs. Covered with Sum Assured up to 1 lakh.

You will have peace of mind: You will surely have peace of mind because you know that you are financially protected against the cost of repairing the damage caused by a bike accident.
Types of Two Wheeler Insurance in India

Inclusions and exclusions of two wheeler insurance in India There are generally two types of two wheeler insurance policies:

Third party liability insurance or liability only covers comprehensive policy or package policy Third party liability insurance Third party liability insurance is legally mandatory in India. This policy only covers loss or damage to the insured bike to third parties or property. It also offers personal accident cover for the bike owner. However, no insurer will cover loss, damage or theft of the insured bike.

comprehensive policy

A comprehensive policy that covers own damage and third party liability. It covers your bike even if it gets stolen. A comprehensive policy that provides a complete security package against any natural calamities and man-made calamities such as earthquakes, floods, lightning, riots, depressions and terrorism etc.

Two wheeler third party liability or liability cover coverage of two wheelers only and excluding liability cover

A third party policy covers any legal liability that may be caused by the insured bike.

Third party bike insurance provides you with financial protection in case of damage or injury to another person or their property due to your two wheeler. This is a basic and mandatory bike insurance policy as per Motor Vehicle Act 1988.

Only two wheeler coverage Liability cover:

Third Party Liability: Unlimited liability cover in case of death or bodily harm to a third party

Third Party Property Damage: Covers third party property damage up to Rs.7.5 lakh Personal Accident Cover in Two Wheeler Insurance: Third party policy covers compulsory owner-driver and provides optional pillion rider cover Owner-Driver Personal Accident Cover: Owner- In case of permanent total disability or accidental death for the driver Rs. 50 at a premium of Rs. 1 lakh sum assured. Optional Rear Seat Rider Accident Cover: Rear Seat Rider Personal Accident Cover Rs. 1 lakh is available on payment of additional premium.

Personal accident cover table

Exclusion of liability cover only

Damage to your two wheeler is not covered. Any damage caused to the insured bike due to an accident is not covered. – – – – The policyholder has to pay the cost of repairs.

Claims arising out of contractual obligations.

Loss, damage, liability due to war, invasion and other conduct of war.
Any liability directly or indirectly related to radioactive contamination and nuclear weapons.

Comprehensive Two Wheeler Insurance

self harm
Third party cover
Third party liability cover
Third party property damage cover
Personal accident cover (personal accident cover for owner-rider, optional pillion rider cover)

Coverage is comprehensive in two wheeler policies:

Own Damage: A comprehensive two wheeler insurance policy provides financial protection against any damage caused by any man-made or natural calamity.
For instance, if your bike gets burnt or stolen, you will be compensated under a comprehensive policy.

For example, if your bike is burnt or stolen, you will be compensated under a comprehensive policy. A comprehensive bike insurance policy covers repair costs of bike damage and any third party liability. With comprehensive two wheeler insurance you are covered for both your loss and liability.

Coverage is comprehensive two wheeler policy

Under a comprehensive policy, your two wheeler is covered in case of any damage to:

Fire, explosion, self-ignition or lightning
Earthquake, flood, tornado, sea storm, typhoon, hurricane, drowning
Cyclone, thunder, frost, landslide, rock slide
Theft, robbery, riot, strike, malicious act
Accident, terrorist activity through external means
Any loss due to transport by road, rail, inland waterway, elevator, lift or air.

Comprehensive cover excluding two wheelers

While a comprehensive policy covers damage to your vehicle caused by any man-made and natural hazards, there are some exceptions:

Any damages incurred while the policy is active or terminated are not covered
Any mechanical wear and tear due to old age
Any mechanical or electrical interference
Riding without a valid and valid license
Riding under the influence of alcohol, drugs or any intoxication
Use of private two wheeler for business purposes is not included
Difference between two wheeler liability cover and comprehensive insurance

Let’s look at an example to understand the difference between liability cover and comprehensive cover.


Amit and Sanjay bought a new Honda CB Unicorn self-start 150 cc bike in Jan’17. On-road price in Mumbai is Rs. 80,000/- is.
Amit had insured the bike only with third party cover. A third-party premium engine based on CC. So the premium is Rs. 770/- is

When Sanjay bought a comprehensive policy (his own loss cover + third party liability cover) which cost him Rs. 1,200/- was.
Both had a minor accident in the month of June. And the total cost of repairs is Rs. 6,000 (approx).
Because Amit bought a third party policy for him

Because he will have to bear the entire cost of repairs himself. The insurance company will only cover the cost of third party property damage. Nothing for any damage to the bike.
Since Sanjay has purchased a comprehensive policy, the insurance company will pay the cost of repairs (after deducting the cost of defective parts) on his behalf.
Add-on cover for two wheeler insurance

These are optional add-on payment features that you can get on your comprehensive two wheeler insurance policy by paying a little extra premium.

The most common add-on is the cover

Zero Depreciation or Zero Depreciation: At the time of claim, the insurance company does not pay the full repair or replacement cost of the depreciated parts of your bike. Depreciable bike parts like rubber, plastic, metal are not fully covered. Depreciation charges are deducted at the time of repair claim.

And it should be carried by you. But with the help of comprehensive two wheeler insurance with zero depreciation add-on cover, you will be covered for reduced repair or replacement costs. Due to this add-on cover, the insurance company pays the full amount of repair and/or replacement at the time of claim, excluding the tyre(s) and tube(s).
Engine Protector: Engine damage is also not covered under a comprehensive bike insurance policy. Engine or gear box damage due to leaking lubricating oil, water leaks, therefore, clogging may be covered under the Engine Protector add-on. The insured bike is covered in case of repair or replacement of crankshaft, piston, connecting rod, gear shaft in gearbox etc.

Two wheeler insurance

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