How to buy and select two wheeler insurance in India

1 December 2023

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Long story short – As mandated by the law, Every motorcycle or two-wheeler owner in India should buy or select motorcycle insurance as per the Motor Vehicles Act 1988. Also, the comprehensive policy is the best one to consider, without a doubt.

Two-wheelers are known for their ease of use and are a dream come true for most. Also, the maintenance cost is low compared to a four-wheeler but comes with more risk in terms of safety. You will be stunned if you google the percentage of accidents caused by motorcycles in India. So all we can do is drive safely, wear a helmet and do the equally important task of insuring the two-wheeler.

How to buy or select two wheeler insurance?

Motorcycle insurance is the first tedious thing that comes to the mind of a new two-wheeler owner. Most people need to learn insurance basics and get lured by an insurance agent’s words. If an accident occurs, they do not even know which type of policy they hold and have yet to learn all the steps to be taken. So let’s get to the basics of motorcycle insurance, and we will get this boring task simplified. First, let’s discuss the types of motorcycle insurance.

Types of two wheeler insurance

Types of two wheeler insurance


Third-party insurance, in simple terms, must be mandatory for all vehicles in India. The rates are fixed by IRDAI (Insurance Regulatory & Development Authority of India) annually and cover only third-party liabilities and expenses. Owner liability and coverage are excluded from this policy.


In the comprehensive plan, in addition to third-party coverage, expenses for the loss/damage of your vehicle, personal accident cover for driver and rider, third-party bodily injuries and damages to the owner’s vehicle are covered. Also, we can add additional riders (add-ons) to the existing policy. Coverage for plastics is considered, but depreciation rates are applicable.

Bumper to Bumper

Bumper to Bumper is the best and the most expensive motorcycle insurance plan. All the features under the comprehensive plan come under this plan also. Everything is covered under this plan, including plastic parts when met with an accident. Depreciation rates are not applicable under this plan, even for plastic parts and are valid for the first 5 years of ownership.

Parameter Bumper to Bumper Comprehensive Third Party
Legal requirement Optional Optional Mandatory
Coverage For owner & other person For owner & other person For other person
Addons Applicable Applicable Not Applicable
Premium/Cost Most expensive Expensive Least expensive
Validity Upto 5 years Upto 15 years Unlimited
Compensation for plastic/metal parts Covered & the depreciation rates are not applicable Covered but the depreciation rates are applicable Not covered
Theft Protection Yes Yes No

Why do you need motorcycle insurance?

As mandated by the law, Every motorcycle or two-wheeler owner in India should buy or select motorcycle insurance as per the Motor Vehicles Act 1988.

What’s not covered in insurance?

  1. In the case of third-party insurance, third-party insurance won’t cover damages to your vehicle.
  2. In situations where you were riding drunk
  3. Any contributory negligence like damage due to driving a two-wheeler in flood, which is not recommended as per the manufacturer’s driving manual, will not be covered)
  4. Without a valid two-wheeler licence
  5. If the damaged two-wheeler is being used incorrectly after an accident and the engine gets damaged, it is considered consequential damage, and it will not be covered

What is Insured Declared Value (IDV)?

Insured Declared Value (IDV) denotes the value for which the vehicle is insured. Below is the formula for calculating the IDV of a two-wheeler.

IDV = Manufacturer’s Ex-Showroom price + sales tax + cost of accessories not included in listed selling price – Cost of depreciation + registration & insurance costs

What is No-Claim Bonus?

NCB or No-Claim Bonus is the discount on your premium if you have not claimed during that year. NCB is introduced to reward safe driving.

Renew insurance before expiry date

You must renew your insurance before the due date to maintain continuity. If your policy lapsed, you must inspect your vehicle to renew the insurance. The insurance team must take vehicle photos again by yourself visiting the insurance office with your vehicle.

How to calculate the two-wheeler insurance premium?

First visit this website. After that, all you need is to enter the vehicle registration number; that’s it. Please use the online insurance premium calculator to find the approximate amount and contact the most suitable insurance company. There are many websites available on google, so have a look into that too.

The main factors taken into account while calculating the two-wheeler insurance premium are:

  1. Motorcycle owner age
  2. Insured Declared Value (IDV)
  3. Engine capacity
  4. Urban location or rural location
  5. No Claim Bonus (NCB)
  6. ARAI Approved Anti-theft Devices
  7. Year of Manufacture

Beyond the above points, insurance companies consider some additional factors that vary.

Which is the best online or offline insurance?

Here is the reason for that check below and decide for yourself.

Particulars Offline Online
Cost Expensive Cheaper
Time Spent More Time Lesser Time
Comparison Difficult Much Simple
Procedures Higher Lower
Ease of Use Tough Simple
Scams Lower Higher
Support Low High

One thing to note here is that motorcycle showrooms are collaborating with insurance companies to provide hassle-free insurance buying options nowadays, which is a good idea if you have limited knowledge about the same. So the competition is intense, and offline insurance quickly catches up with online insurance.

How to claim for your two-wheeler after an accident?

You will have to contact your insurer to initiate the claims process. After that you will have to submit the claim form along with relevant documents like driving license, FIR and estimate of repairs. After a surveyor assesses the damage, you will receive suitable compensation from your insurer.


Here’s a summary for how to buy or select two wheeler insurance

  1. Go for a bumper-to-bumper policy instead of comprehensive bike insurance.
  2. Try to buy motorcycle insurance online as it is more hassle-free and convenient.
  3. Try to renew insurance online as much as possible.
  4. Do not blindly believe the words of the insurance agent or other people.
  5. Understand Insurance Declared Value (IDV) as the maximum sum insured fixed when purchasing a policy.
  6. Compare the bike insurance plans with others to make an informed decision.
  7. Always look for an insurance company with a higher claim settlement ratio, as it shows its performance.
  8. Look for riders to extend your insurance cover such as personal accident cover for pillion rider, zero depreciation cover, towing cover etc.
  9. Finally, ask the customers about the product and check online reviews, too.

If you have any other doubts or queries, email us at We are always eager to help and assist you. Also, here are several social media platforms of Bikeleague India to raise your suspicions.