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IRDAI Rules for Two Wheeler Insurance Policies You Should Know

Updated On Oct 28, 2020

The rules set by IRDA differ based on the type of coverage. Following are the set of rules for different types of insurance coverage:

There are certain rules and regulations you must follow while riding a two-wheeler on the road. Getting two-wheeler insurance is one of them. Besides that, the Insurance Regulatory and Development Authority of India (IRDAI) has created a list of guidelines for two-wheeler insurance policies. Both, the bike insurance companies and the policyholders, are obliged to comply with the rules laid down by the IRDAI.

IRDA Rules For Two-Wheeler Insurance

The rules set by IRDA differ based on the type of coverage. Following are the set of rules for different types of insurance coverage:

1. Guidelines For Third Party Two-Wheeler Insurance

The third-party insurance policy covers the cost incurred due to any property damage or injuries incurred by a third-party due to the policyholder's two-wheeler. The IRDA rules for third party policy are:

  • In case of injury or death of the third-party caused by the insured two-wheeler, the policyholder's insurance company must provide monetary compensation to the third party, considering the extent of the loss suffered by the third-party.
  • The cost of repairing the damage inflicted on a third party property due to the insured’s vehicle must be borne by the insurer, depending on the intensity of the damage up to Rs. 1 lakh.

2. Guidelines For Comprehensive Policy Two-Wheeler Insurance

Under comprehensive insurance policy, the insurance company shall follow all the rules mentioned in the third-party policy. The policy, furthermore, shall abide by the following rules:

  • The insurer should bear the cost of repairing or replacing any parts of the insured’s two-wheeler due to damage caused by any natural or man-made calamities.
  • The cost stated in the add-on covers purchased by the policyholder must be borne by the insurance company.
  • In case of theft or total loss of the insured’s two-wheeler, the insurance company should provide compensation to the policyholder.

IRDA Revised Rules For 2020

Some of the earlier rules needed revision considering the increased number of road mishaps. Here are the revised IRDA rules for two-wheeler insurance:

  1. A fine of Rs. 500 shall be charged for if the penalty of the offense committed by the rider is not stated in the rules. The penalty will be increased to Rs. 1500 for a second offense.
  2. A penalty of Rs. 500 to Rs. 1000 shall be charged for disobeying the road safety rules.
  3. An additional fine of Rs. 2000 shall be charged if the rider doesn't cooperate with the authorities.
  4. You will be charged Rs. 5000 for riding your bike without a driver's license and Rs. 10000 for riding after disqualification.
  5. For dangerous driving or overspeeding, a fine of Rs. 1000 has to be paid.


As a two-wheeler owner, you ought to know these IRDAI rules to be aware of the insurance benefits. The rules or penalties may change in the future. Hence, keep a check on the rules to stay up-to-date.

You May Also Like To Read:

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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