What is Bike Insurance?

A bike insurance, technically called a two-wheeler insurance, is an ideal tool to safeguard yourself against the financial losses which may arise due to an unfortunate event like a road accident involving the two-wheeler. According to the Indian Motor Tariff, 2002 it is mandatory for every bike owner to have at least a third party bike insurance cover.

Types of Bike Insurance

On the basis of coverage, there are 3 types of bike insurance plans as explained below:

1. Third Party Bike Insurance Plan: A third party bike insurance plan also known as liability only bike insurance plan is the most basic of all bike insurance covers. It insures a policyholder against only but all third party liabilities be it bodily injuries/death of a third party or property damage incurred by a third party. Thus, it provides no insurance cover for damages incurred by the insured’s bike.

2. Comprehensive Bike Insurance Plan: A comprehensive bike insurance cover provides for all the shortcomings of a third party bike insurance cover. Also known as a package bike insurance policy, a comprehensive bike insurance plan provides coverage for all types of damages incurred by the insured’s bike in an unfortunate event. Thus, it provides coverage for both third party liabilities as well as own damages suffered by the insured’s bike.

3. Standalone Own Damage (OD) Bike Insurance Plan: As the name suggests, a standalone own damage bike insurance plan provides insurance cover only for own damages incurred by the insured’s bike in a mishap. Thus, it does not provide coverage for third party liabilities. Thus, if you purchase a standalone own-damage cover, you need to purchase a third party cover as well to meet the legal requirements established by the Indian Motor Tariff, 2002.

Coverage Provided by Different Bike Insurance Policies

Type of Loss

Third Party Plan

Comprehensive Plan

Standalone OD Plan

Bodily injuries of third party



Death of third party



Property damage of third party



Own Damage of Insured’s Bike



Theft of Insured’s Bike



Following is the list of events in which an insurance company provides coverage for the own damage incurred by the insured’s car under a comprehensive and standalone own damage covers:

  • Road Accident
  • Natural Calamities - Floods, Earthquakes, Cyclones, etc.
  • Fire/Explosion
  • Riots, Strikes
  • Terrorist Activities
  • Damage During Travel By Air, Rail, Road, Water.

Which Bike Insurance Plan Should I Buy?

The answer to this question entirely depends upon the requirements and budget of the bike owner. While a third party bike insurance cover is a mandatory requirement, a comprehensive bike insurance cover is a recommended plan as it provides complete insurance coverage for your much-loved bike.

Also Read

IRDAI Withdraws Sale of Comprehensive Motor Insurance Policy

Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Disclaimer: This article is issued in 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.

Add-ons For Your Bike Insurance Policy

  • Zero Depreciation

    Like other assets, the value of your bike also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover

    The damages incurred by the engine of the bike are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone bike insurance policy can save you from these expenses.

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