Why is it Mandatory to Have Bike Insurance in India?
When it comes to protecting your bike, insurance is not just a legal requirement; it is a vital safety net that ensures your financial and emotional peace of mind. With uncertainties on the roads arriving at any corner, having the right policy can make a difference. However, understanding the options and making a decision can feel overwhelming.

This write-up aims to simplify the complexities of two-wheeler insurance plans and help you make a knowledgeable decision.
Why is Having a Bike or Two-wheeler Insurance Important?
Here are some reasons why you should purchase bike insurance:
- As per the Motor Vehicle Act of India, vehicle insurance is mandatory to make motorcycles road legal. It is the primary reason to purchase bike insurance.
- Bike insurance plans also safeguard your financial interests from third-party liabilities arising during accidents. They offer adequate compensation and cover legal liabilities.
- Such insurance plans also offer comprehensive coverage, including protection against theft, natural calamities, accidents, and vandalism.
- Bike insurance ensures peace of mind and financial preparedness for unforeseen incidents. It provides the confidence to ride without worrying about unexpected expenses.
Types of Bike Insurance Policies in India
Here are the sub-types of motorcycle insurance policies:
1. Standalone Own-Damage Bike Insurance
A standalone own damage insurance policy is designed to cover only damages to your bike during a mishap. It provides monetary compensation for losses due to accidents and theft, natural calamities like floods or earthquakes, and man-made incidents such as vandalism or riots. However, this policy does not include any coverage for third-party liabilities.
2. Third-Party Bike Insurance
Third-party bike insurance is the most basic and legally required form of coverage per the Motor Vehicles Act of 1988. This policy provides financial protection against liabilities arising from injuries, property damage, or even the unfortunate death of a third party during an accident involving your two-wheeler. However, it does not cover any damage to your bike.
3. Comprehensive Bike Insurance
A comprehensive two-wheeler insurance plan provides extensive coverage, including third-party and own damage coverage. This policy ensures all-around financial security, and you can further increase the coverage with add-ons such as zero depreciation, roadside assistance, engine protection, etc.
Furthermore, you can learn the comparative study of comprehensive vs third-party bike insurance, and then make a decision.
How to Choose the Right Bike Insurance Cover?
Choosing a bike insurance plan can be overwhelming, but here are some tips that can help you make the right choice:
● Understand Your Requirements
Initiate the process of buying a two-wheeler insurance plan by evaluating your needs. So, a third-party bike insurance policy is enough if you only need coverage to meet legal requirements. However, the experts suggest that you opt for a comprehensive two-wheeler insurance plan for holistic coverage.
● Factor In the Cost of the Motorcycle and Its Usage
If you own a new, high-value motorcycle, you need to opt for comprehensive insurance plans due to their extensive coverage. Alternatively, if your bike is old and not used regularly, basic third-party insurance can be enough.
● Availability of Add-Ons
The add-ons available with two-wheeler insurance plans enable you to customise your policy as per your needs. So, by opting for the comprehensive plans, you can access this benefit and increase the total coverage depending on your usage and riding patterns.
● Read the Fine Print
It is important to review the policy's terms and conditions before making a decision. You need to check the inclusion and exclusion, hidden charges, and bylaws to get a proper understanding of the policy. This will help you make a better decision.
● Reputation of the Insurance Provider
You must also check the reputation of the insurance provider before buying the policy. You must assess the claim settlement ratio, claim initiation process, and customer service to gauge the hassle awaiting you following the purchase. Also, go through the customer reviews and interact with them on different forums to better understand them.
Add-Ons to Enhance Your Bike Insurance Policy
Add-ons refer to the additional coverages within your bike insurance policy. Here are some of the popular add-ons for bike insurance policies:
- Zero Depreciation Cover: It covers full repair/replacement costs without accounting for the depreciation of bike parts.
- Engine and Gearbox Protection Cover: It offers compensation for damages to the engine and gearbox after any accident.
- Return to Invoice Cover: It provides full reimbursement, including registration fees and road tax, in case of theft or severe damage.
- Roadside Assistance Cover: It extends 24/7 support for emergencies like refuelling and towing services.
- Consumables Cover: It covers consumables like engine oil, nuts, bolts, and brake fluid, which are not covered under a standard policy.
- Key Replacement Cover: This covers the cost of replacing your bike's keys in case they are lost, stolen, or damaged.
Tips to Save on Bike Insurance Premiums
Here are some tips to save on the bike insurance premium:
- Renew Your Policy on Time: By renewing your bike insurance policy on time and availing of the no-claim bonus discount, you can considerably save on the premium.
- Install Anti-Theft Devices: An ARAI-recommended anti-theft device can improve the security of your two-wheeler. It can also help you negotiate with the insurance provider and lower the premium.
- Policy Tenure: The insurance provider usually extends additional discounts for policies with a longer tenure. So, consider purchasing or renewing policies for multiple years.
- Excellent Riding Record: A good riding record helps you get discounts on premiums. A clean riding record without any accidents portrays you as a responsible rider, lowering the risk to insurance companies. As a result, they extend the benefit through a discount on premiums.
To sum up, bike insurance is not just a legal requirement but a safety net protecting your financial interests. Therefore, it is important to make the right decision when purchasing this policy.
So, keep the above-mentioned pointers in mind, including things to review and tips to reduce premiums, to secure the best protection for your bike and enjoy a worry-free riding experience.