Quick Answer
- Third-party insurance mandatory by law: ₹482-2,804/year depending on engine CC
- Comprehensive insurance covers own damage + third-party: ₹2,000-8,000/year
- NCB (No Claim Bonus) discount: 20% after 1 claim-free year, up to 50% after 5 years
- Add-ons worth considering: Zero depreciation (₹500-1,500), engine protection (₹300-800)
- Cashless claim process: File FIR → Inform insurer within 24 hours → Get surveyor approval → Garage repair
Introduction
Bike insurance protects you from financial losses due to accidents, theft, or third-party liability. While third-party insurance is legally mandatory, comprehensive coverage offers complete protection for your investment.
This guide covers insurance types, premium costs, claim process, and tips to get maximum value from your policy.
Types of Bike Insurance
Third-Party Insurance (Mandatory)
Coverage:
- Third-party death/injury compensation (unlimited)
- Third-party property damage (₹7.5 lakh limit)
- Legal liability protection
Does NOT Cover:
- Own bike damage
- Theft or fire
- Personal injury to rider
Premium (2026):
- Up to 75cc: ₹482/year
- 75cc-150cc: ₹752/year
- 150cc-350cc: ₹1,193/year
- Above 350cc: ₹2,804/year
Best For: Legal compliance only, old bikes with low value
Comprehensive Insurance (Recommended)
Coverage Includes:
- Everything in third-party policy
- PLUS: Own damage (accident, fire, theft, natural calamities)
- Personal accident cover for owner (₹15 lakh)
Premium: ₹2,000-8,000/year depending on bike value and location
Best For: New bikes, expensive bikes, peace of mind
Standalone Own Damage (OD) Cover
Covers only your bike damage, not third-party. Rarely sold separately as third-party is mandatory. Some use this with long-term third-party policy.
Premium Cost Breakdown
| Bike Value | Third-Party | Comprehensive |
|---|---|---|
| ₹50,000-75,000 | ₹752 | ₹2,000-3,500 |
| ₹75,000-1,00,000 | ₹752-1,193 | ₹2,500-4,500 |
| ₹1,00,000-1,50,000 | ₹1,193 | ₹3,500-5,500 |
| ₹1,50,000-2,50,000 | ₹1,193-2,804 | ₹5,000-7,000 |
| ₹2,50,000+ | ₹2,804 | ₹7,000-15,000 |
Factors Affecting Premium
Insured Declared Value (IDV):
- Higher IDV = Higher premium
- Depreciates 5-10% annually
- Negotiable within limits
Location (Zone):
- Metro cities (Mumbai, Delhi): Higher premium (+20-30%)
- Tier 2 cities: Moderate
- Rural areas: Lowest premium
Engine Capacity:
- Higher CC = Higher premium
- 100cc vs 350cc can be 3x difference
Age of Bike:
- New bike: Highest premium
- Decreases as bike depreciates
- Stops reducing after 5 years
Claim History:
- No claims = Discount (NCB)
- Claim made = Lose NCB discount
Add-Ons and Their Costs
Zero Depreciation Cover (Recommended)
What: No depreciation deducted on parts during claim Cost: ₹500-1,500/year (15-20% extra) Worth It: YES for bikes under 5 years old Example: Without zero dep, ₹10,000 plastic panel claim = ₹5,000 payout (50% depreciation). With zero dep = full ₹10,000.
Engine Protection Cover
What: Covers engine/gearbox damage from water, oil leak, etc. Cost: ₹300-800/year Worth It: YES if you ride in flood-prone areas
Roadside Assistance (RSA)
What: Free towing, fuel delivery, flat tire help Cost: ₹150-500/year Worth It: YES for long-distance riders
Return to Invoice
What: Get bike’s original price if total loss/theft Cost: ₹400-1,000/year Worth It: For expensive bikes (₹2 lakh+)
Personal Accident Cover for Pillion
What: ₹15 lakh cover for regular pillion rider Cost: ₹200-400/year Worth It: If you frequently carry pillion
Key/Lock Replacement
What: Covers lost key replacement cost Cost: ₹100-300/year Worth It: Optional, usually affordable DIY
NCB (No Claim Bonus) Discount
How NCB Works
NCB is a discount on OD premium (not third-party) for claim-free years.
NCB Slab:
- 1 year claim-free: 20% discount
- 2 years: 25% discount
- 3 years: 35% discount
- 4 years: 45% discount
- 5+ years: 50% discount
Example: ₹4,000 OD premium
- With 20% NCB: Pay ₹3,200
- With 50% NCB: Pay ₹2,000
- Savings: ₹2,000/year!
Important:
- NCB belongs to YOU, not bike
- Transferable to new bike
- Lost if you make claim
- Protected with “NCB Protection” add-on (₹200-500)
Claim Process
Accidental Damage Claim
Step 1: Immediate Actions (Within 24 Hours)
- For major accidents: File FIR at police station
- Take photos of damage
- Don’t move bike (unless blocking traffic)
- Inform insurer immediately (call helpline)
Step 2: Intimation to Insurer
- Call insurer helpline
- Provide policy number, location, damage description
- Get claim reference number
Step 3: Surveyor Inspection
- Insurer sends surveyor to inspect
- Surveyor assesses damage and estimates cost
- Usually happens within 1-2 days
Step 4: Repair
- Cashless: Take bike to network garage, insurer pays directly
- Reimbursement: Repair anywhere, submit bills for payment
Step 5: Claim Settlement
- Garage files claim with photos and bills
- Insurer processes (7-15 days)
- Payment made to garage (cashless) or you (reimbursement)
Documents Needed:
- Policy copy
- FIR copy (if applicable)
- Repair bills and invoices
- Photos of damage
- RC book copy
Theft Claim
Immediate Actions:
- File FIR immediately
- Inform insurer within 24 hours
- Publish newspaper ad about theft (within 7 days)
Documents:
- FIR copy
- RC book original
- All keys
- Policy documents
- Newspaper ad copy
Timeline: 90 days for police clearance, then claim processed
Total Loss/Write-Off
If repair cost exceeds 75% of IDV, declared total loss.
Payout: IDV minus depreciation (unless return-to-invoice cover) You Surrender: RC book, keys, scrap
How to File Claim
Cashless Claim (Recommended)
- Find network garage using insurer app/website
- Take bike to garage
- Garage calls insurer surveyor
- Surveyor approves estimate
- Garage repairs and bills insurer directly
- You pay only deductible (if any)
Pros: No upfront payment, hassle-free Cons: Limited to network garages
Reimbursement Claim
- Repair at any garage
- Pay full amount
- Submit bills to insurer
- Receive reimbursement in 7-15 days
Pros: Choose any garage Cons: Pay upfront, paperwork
Money-Saving Tips
1. Compare Online Before Buying
Use comparison websites:
- PolicyBazaar, Coverfox, BankBazaar
- Compare 5-6 quotes
- Save 15-25% vs offline
2. Opt for Voluntary Deductible
Agree to pay first ₹500-2,000 of any claim. Discount: 10-20% on premium Worth it: If you avoid small claims anyway
3. Install Anti-Theft Devices
ARAI-approved alarm/GPS tracker Discount: 2.5-5% on premium
4. Don’t Claim for Small Damage
Protect your NCB for bigger savings Example: ₹3,000 scratch repair claim loses 20% NCB (₹800 discount next year) Better: Pay ₹3,000 yourself, keep NCB
5. Choose Correct IDV
Don’t over-insure (waste premium) or under-insure (claim rejection) Optimal: Current market value of bike
6. Buy Multi-Year Policies
3-year comprehensive lock-in Discount: 10-15% vs annual renewal Benefit: No premium increase for 3 years
Common Claim Rejection Reasons
Why Claims Get Rejected
❌ Driving Without Valid License: Claim denied ❌ Drunk Driving: Rejected if alcohol detected ❌ No FIR Filed: Major accidents require FIR ❌ Late Intimation: Must inform within 24-48 hours ❌ Using Bike for Commercial Purpose: Against terms ❌ Unauthorized Modifications: Performance mods void warranty ❌ False Information: Fraud = claim rejection + policy cancellation
How to Avoid Rejection
✅ Keep license, RC, insurance papers always ✅ Inform insurer immediately after accident ✅ File FIR for major accidents/theft ✅ Provide accurate information during claim ✅ Don’t drive under influence ✅ Declare modifications to insurer
Frequently Asked Questions
Frequently Asked Questions
Yes, third-party bike insurance is legally mandatory under Motor Vehicles Act. Riding without insurance attracts ₹2,000 fine and/or 3-month imprisonment for first offense. Comprehensive insurance (covering own damage) is optional but highly recommended, especially for new/expensive bikes. Always carry policy copy while riding.
Comprehensive insurance costs ₹2,000-8,000/year depending on bike value, engine CC, and location. Example: ₹1 lakh bike in metro city costs ₹3,500-4,500/year. Premium includes third-party (₹752-1,193) + own damage cover. Add-ons like zero depreciation increase cost by 15-20%. Use online comparisons to get best rates.
NCB (No Claim Bonus) is discount on premium for claim-free years: 20% after 1 year up to 50% after 5 years. NCB belongs to you, not bike - fully transferable when buying new bike. To transfer: provide NCB certificate from previous insurer to new insurer. NCB valid for 90 days after old policy expiry.
Yes, zero depreciation is highly recommended for bikes under 5 years old. Costs ₹500-1,500 extra (15-20% of premium) but ensures full claim amount without depreciation deduction. Example: ₹10,000 plastic panel claim pays ₹5,000 without zero dep, ₹10,000 with it. Not available for bikes over 5-7 years old.
Cashless claims settle in 7-15 days after surveyor approval and garage repair completion. Reimbursement claims take 10-20 days after submitting all documents. Theft claims take 90+ days due to police clearance requirement. Simple claims without disputes settle faster; complex cases may take 30 days. Track status on insurer app/website.
Yes, comprehensive insurance covers minor scratches and dents. However, consider the impact on NCB before claiming - claiming ₹3,000 scratch repair loses 20% NCB (worth ₹800+ annually). Better to pay small damages (under ₹5,000) yourself and preserve NCB for major accidents. Or buy 'NCB Protection' add-on for small claims.
Late renewal (gap over 90 days) means: lose NCB discount accumulated, require fresh inspection before renewal, possible premium increase, no coverage during gap period (liable for accidents). Renew within 90 days to keep NCB. Set reminders 15 days before expiry. Some insurers allow instant online renewal.
Third-party is minimum legal requirement (₹752-2,804/year) but covers only third-party damages, not your bike. Buy comprehensive (₹2,000-8,000/year) for: new bikes, bikes worth over ₹75,000, peace of mind against theft/accidents. Third-party alone acceptable for very old bikes (8+ years) with low resale value under ₹25,000.
Conclusion
Bike insurance is essential protection, not optional expense. Choose wisely:
- New/Expensive Bikes: Comprehensive with zero depreciation
- Moderate Value Bikes: Comprehensive with selected add-ons
- Old Bikes: Third-party sufficient
Smart insurance means comparing quotes online, choosing optimal IDV, protecting NCB, and claiming only significant damages. Invest in the right coverage and ride with confidence.
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Last updated December 27, 2025. Premium rates subject to change. Always compare quotes before purchasing insurance.