Two Wheeler Insurance

Factors Which Impact Your Bike Insurance Cover

Buying a two-wheeler in India has never been so exciting. Existing manufacturers are coming up with new models, revamping the existing product lineup, and new manufacturers are also entering the…

Buying a two-wheeler in India has never been so exciting. Existing manufacturers are coming up with new models, revamping the existing product lineup, and new manufacturers are also entering the market. It provides ample opportunities and options to choose from for a bike lover. Whether you want to feel the wind with a high engine capacity bike or save nature using an electric bike, the options are numerous.


However, your responsibilities as a bike owner don't just stop researching and finding the right bike for yourself. You also need to buy two-wheeler insurance. It is primarily to keep you safe from any unforeseen incidents on the road and secondarily to stay away from the hefty fines.

While it should not come as a surprise that your bike plays a crucial role when you buy two-wheeler insurance, it does so in more ways than you might think. Whether you buy bike insurance online or offline, the impact of insurance is directly proportional to your bike. Here are some of the significant factors.


  • Bike Manufacturer: The manufacturing company of your bike is a leading factor that can impact the insurance premium of your bike. Indian bikes from Yamaha, TVS, Hero, etc., are the regular bikes available in India. However, some premium bikes are also available for enthusiastic bikers, who now have the option to choose from brands such as MV Augusta, Benelli, Indian, Harley Davidson, etc. These premium bikes offer a lot in terms of features, driving pleasure, aesthetics and igniting your passion. However, these factors also push the premium of your bike insurance upwards. A scooter or a bike from an Indian manufacturer, on the other hand, will have a lower insurance premium.
  • The Bike's Make and Model: While a bike's manufacturing company plays a vital role in deciding the policy premium and coverage, the model you opt for is also crucial. Two friends will end up paying different insurance premiums for the same manufacturer but different models. For instance, both of them own Yamaha bikes. One owns Yamaha FZ, and the other owns MT 15. They will end up paying different premiums altogether.
  • The Engine Capacity of Your Bike: An engine is one of the core components of a bike. When you buy bike insurance online, you will see the difference in premium prices with engine capacity. The IRDAI or Insurance Regulatory and Development Authority of India has set premiums based on engine capacities for third party liability insurance.

    The four major categories are, up to 75cc, between 75cc to 150 cc, between 150cc to 350 cc and above 350 CC. Needless to say, the policy premium increases with a higher engine capacity.

  • Insured Declared Value or IDV: The IDV or the insured declared value of a bike is the current value of your bike, taking different factors such as bike manufacturer, age, depreciation, etc., into factor. The IDV of a bike is the single most significant factor deciding the premium when you buy two-wheeler insurance online. If you lose your bike or it is damaged beyond repair, the insurance company will pay you the IDV as compensation.

    During policy renewals, you do have the option to play around with the IDV of the bike. Setting a higher IDV would increase the overall premium, while a lower IDV would reduce the policy premium.

  • The Bike's Age: Under most circumstances, the value of a bike reduces with ageing unless you have a vintage bike with you. As the age of the bike increases, the wear and tear and possibly some other issues will simultaneously increase, as well. The lower value of your bike directly impacts the policy premium when you buy bike insurance online.

    Hence, with an ageing bike, you can see a reduction in the policy premium.

  • RTO Location: RTO affects the premium of your two-wheeler; that is, the location of vehicle registration is a determining factor of the premium. The locations are divided into 2, which is Zone A, and Zone B. Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad falls under zone A. Rest locations come under zone B. The premium varies depending on the engine capacity, damage factor, and the zones where the bike is taken.

  • No Claim Bonus: The discount offered to drivers for good driving skills is known as a no-claim bonus. It starts from 20 per cent and goes up to 50 per cent over five years. It is regarded as one of the best ways to get discounts on a two-wheeler premium. NCB directly impacts the two-wheeler premium.

    You can choose to buy bike insurance online or offline. But the most important thing is to buy a bike insurance policy. The number of vehicles on Indian roads is constantly rising, which only adds to the complications and risks. Riding around without a bike insurance policy will leave you exposed to a lot of risks. In the unfortunate event of an accident, you will be liable to pay for the repairs from your pocket.

But a good bike insurance policy will ensure that you do not have to worry about repairs or damages. It also will keep you away from paying hefty fines as per the updated Motor Vehicles Amendment Act. A person must shell out INR 2,000 for riding an uninsured bike, which is higher than the applicable policy premium in many cases.

Disclaimer: The information published in this article is for reader′s reference only. The content of this information is to provide an overview of your health insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice The makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.

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