There are three main types of cover:

• Third-party liability: covers injury, death, or property damage you cause to others. It does not cover your own bike. Premium rates are set by the government and IRDAI, not by individual insurers.

• Comprehensive: third-party cover plus damage to your own bike from accidents, theft, fire, floods, riots, and similar events.

• Standalone own-damage: covers only your bike. It suits riders who already hold a valid third-party policy, such as the long-term cover sold with a new bike.

Third-party cover for death or injury has no upper limit. Damage to someone else’s property is usually capped at ₹1 lakh. For most riders, comprehensive cover is the sensible choice. Third-party cover alone may suit an old bike with a low market value, where an own-damage claim would pay very little. 

Yes. Under the Motor Vehicles Act, 1988, every two-wheeler on a public road must have at least third-party insurance. For a first offence, riding without it can lead to a ₹2,000 fine, up to three months in jail, or both. Repeat offences carry a ₹4,000 fine. 

A few rules apply to specific cases:

• New bikes: since September 2018, every new two-wheeler must be sold with five years of third-party cover. Own-damage cover can be bought for one year and renewed separately.

• Personal accident cover: the owner-rider needs personal accident cover of ₹15 lakh. You can buy it with your policy, or skip it if you already hold a separate accident policy for at least that amount. 

• Commercial use: a private bike policy may not cover paid delivery or hire trips. If you ride for work, ask your insurer about commercial vehicle insurance.

The Insured Declared Value (IDV) is your bike’s current market value. It is the most the insurer pays if the bike is stolen or damaged beyond repair. IDV is based on the ex-showroom price minus standard depreciation: 

• Up to 6 months old: 5%

• 6 months to 1 year: 15%

• 1 to 2 years: 20%

• 2 to 3 years: 30%

• 3 to 4 years: 40%

• 4 to 5 years: 50%

For bikes older than five years, you and the insurer agree on the IDV. For example, a bike bought at ₹1 lakh ex-showroom that is now two and a half years old would have an IDV of about ₹70,000.

Don’t lower the IDV just to cut the premium. A theft claim will pay only that amount.

The no claim bonus (NCB) is a discount on the own-damage premium for every claim-free year. It starts at 20% and rises to 50% after five claim-free years. The NCB belongs to you, not the bike, so you can carry it over to your next bike when you sell the old one. 

In our experience, a small claim can cost you more in lost NCB than it pays out. For minor scratches, compare the repair bill with your NCB savings before you claim.

Add-ons fill gaps in a standard comprehensive policy. These are the most useful:

• Zero depreciation: pays the full cost of replaced parts without deducting depreciation. It is most valuable for bikes under three to five years old.

• Engine protection: covers engine damage from water entering the engine or oil leaks, which the base policy usually excludes. It is worth having in flood-prone areas such as coastal Odisha.

• Roadside assistance: helps with breakdowns, flat tyres, towing, and fuel delivery.

• Return to invoice: pays the gap between the IDV and the original invoice price if your bike is stolen or written off.

• Consumables cover: pays for nuts, bolts, engine oil, and similar items used during repairs.

• Pillion rider cover: gives accident cover to the person riding behind you.

Each add-on raises the premium, so choose based on your bike’s age and how and where you ride.

Follow these steps after an accident or theft:

1. Inform your insurer as soon as possible, through its app or helpline.

2. File an FIR for theft, injury to another person, or a major accident.

3. Take photos of the damage and the accident spot.

4. Wait for the survey. The insurer appoints a surveyor to inspect the damage, so don’t start repairs before that.

5. Choose a network garage for cashless repair. At other garages, you pay first and claim reimbursement later.

6. Keep your documents ready: policy copy, registration certificate (RC), driving licence, FIR copy, and repair bills.

Claims are often rejected when the rider has no valid licence or is under the influence of alcohol. Keep your licence and RC up to date, and keep digital copies in DigiLocker or mParivahan.

• Renew before expiry. If you renew more than 90 days after expiry, you lose your NCB, and a lapsed policy may need a fresh inspection.

• Compare like for like: use the same IDV, add-ons, and deductible across quotes.

• Consider a voluntary deductible. It lowers the premium, but you pay more out of pocket on each claim.

• Check the insurer’s network garages near your home and work.

• Declare correct details, including any modifications and how you use the bike.

• Keep other protection in place. Bike insurance covers your vehicle and your legal liability, not your hospital bills beyond the accident cover, so keep good health insurance too.

If you also own a car, our car insurance page explains how car cover differs.

Two-wheeler insurance keeps you legal on the road and protects you from costly repairs and liability claims. Choose comprehensive cover for most bikes, set a realistic IDV, protect your NCB, add only the add-ons you need, and renew on time. To compare two-wheeler insurance plans from multiple insurers, book a free consultation with an Excel India advisor.