Two Wheeler Insurance and Types of Policies for Bike Insurance

Find about the Types of covers available in Two Wheeler Insurance, Different Factors effecting Bike Insurance Premiums and Exclusions related to Motorcycle Policy…

Two wheeler Insurance is a part of Motor Insurance. Two wheeler may attached with side cars. Two Wheeler/Motorcycle/Bikes are the vehicles used for personal purposes.

Two wheeler Insurance

Two wheeler Insurance premium mainly depends on following 4 factors.

  • Insured Declared Value
  • Geographical Zone
  • Cubic Capacity
  • Age Of the Vehicle

Insured Declared Value

  • IDV full form is Insured’s Declared Value of the vehicle, IDV also termed as SUM INSURED of the vehicle.
  • It will be fixed at the commencement of each policy period for Insured vehicle.

Geographical Zone

Whole country has been divided into two zones. Premium rate varies depending on zone where vehicle has been registered

  • Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune.
  • Zone B: Rest of India.

Cubic capacity of vehicle

  • Two wheelers divided in to 3 categories depending on cubic capacity.
  • Minimum IDV also changes depending on cubic capacity.

Cubic Capacity and Minimum Value of Vehicle

Cubic CapacityMinimum Value
Below 150 ccRs. 5,000/-
 150 cc  to 350 ccRs. 6,000/-
 350 cc AboveRs. 7,000/-

Age of the vehicle

Based on age of vehicle own damage cover (section I cover) premium will change in comprehensive/package policy.

Above 4 factors effect Insurance premiums related to Motorcycle Policies. For More details Please check Referrence

Types Of Two Wheeler Insurance

There are mainly 2 types of Two Wheeler Insurance

Liability Policy :

  • Liability Insurance also called as Third Party Insurance Cover.
  • As per Motor Vehicle Act 1988 Third party Insurance coverage is mandatory for vehicle to ply on public places.
  • This covers Third Party Liability for bodily injury or death or both and Third party Property Damage.
  • These claims are settled through courts.
  • Personal Accident Cover for Owner-Driver is also included in this cover type.

Package Policy/Comprehensive policy

Along with Liability cover Package policy/Comprehensive policy covers damages to the vehicle Insured (also known as Own Damage cover).

Package policy divided into 3 sections are there

Section I :

Own damage cover to the Insured vehicle due to

  • Natural calamities : Fire, Explosion, Self-ignition or Lightning, Earthquake, Flood, Hurricane,
  • Other than Natural Calamities : Burglary, Theft, Riot, Strike, Malicious Act, Accident by external means, Terrorist Activity, Any damage in transit by road/rail/Inland waterway/Lift/Elevator or Air etc.

Section II :

Third Party Legal Liability

  • Covers for legal liability due to accidental damage for
  • Any permanent injury / death of a person or
  • Any damage caused to the property of a third party (TPPD)

Section III :

Personal Accident Cover

  • Motor insurance provides compulsory Personal Accident cover for individual owner of the vehicle who has valid driving license.
  • PA cover also is available for Pillion rider/ unnamed riders.

Note: 5 years Liability policy or Bundled policy (First year package and remaining 4years liability policy) has to be taken for New Motor Two Wheeler.


Exclusions on Bike Insurance

Following are the main exclusions in motor Two Wheeler Insurance Policy

  • Hire or Reward
  • Carriage of goods (other than samples or personal luggage)
  • Organized racing
  • Pace making
  • Speed testing
  • Reliability Trials
  • Use in connection with Motor Trade
  • Vehicles used for driving tuition purpose
  • Willful acts
  • Vehicle used for Criminal offence
  • While driving without valid driving License
  • While driving without Registration. ( For New vehicle 30 days time period will be given for Vehicle registration).
  • Normal wear and tear will not covered.

Add On Covers to Motor Cycle Insurance Policy

Add on covers will be selected on only package policies/Comprehensive policy. This are additional covers on own damage cover.

Each company has their own names for the add-on covers. Some are

  • Nil depreciation cover or Bumper to bumper cover or Zero depreciation cover
  • Engine protect cover
  • NCB (No Claim Bonus) protect cover
  • Invoice Protect cover or Return to invoice cover
  • Consumable protect cover