This is Part 11 of the Car & Bike Owner's Guide, our 20-part series on owning, running and staying legal with a vehicle in India. New here? Start with Part 1: Choosing Your First Car, or read the previous part, Part 10: Car Insurance Add-ons and NCB.
Two-wheelers are involved in a large share of road accidents in India, yet many riders let their insurance lapse or buy the cheapest cover without reading it. Here is what you need to know.
The types of cover
- Third-party (TP): Compulsory by law. Covers injury, death or property damage you cause to others, but not your own vehicle.
- Comprehensive: Third-party cover plus own damage from accidents, fire, theft, floods and other natural calamities.
- Standalone own-damage (OD): Covers only your own vehicle. You can buy it if you already have a valid TP policy.
The five-year rule for new two-wheelers
New two-wheelers must be sold with five years of third-party cover. Your dealer usually offers either a five-year bundled comprehensive policy, or five-year TP with one-year own-damage that you renew separately each year.
Key terms
- IDV (Insured Declared Value): The maximum amount the insurer pays if your vehicle is stolen or written off, roughly its current market value. A very low IDV means a cheaper premium but a smaller payout.
- Owner-driver personal accident (PA) cover: Compulsory unless you already hold a separate personal accident policy of at least ₹15 lakh.
- Pillion cover: Optional personal accident cover for the passenger.
- No Claim Bonus: Works the same way as for cars. See Part 10: Car Insurance Add-ons and NCB.
Add-ons worth considering
- Zero depreciation for new or premium bikes.
- Roadside assistance for breakdowns and flat tyres.
- Engine protection if you live in a flood-prone area.
- Return to invoice for expensive bikes, in case of theft.
Renewal tips
- Renew before the expiry date. Riding without insurance can attract a ₹2,000 fine for a first offence.
- If your comprehensive policy lapses, the insurer may need to inspect the vehicle before renewing own-damage cover.
- Compare quotes online, but check the IDV and add-ons, not just the price.
- Keep a digital copy in DigiLocker. See Part 4: Vehicle Documents.
Good gear matters as much as good insurance. Read our riding gear guide and monsoon riding checklist.
Rules, fees and fines here reflect central rules as of October 2026. States can set their own procedures and compounding amounts, and rules change, so check the Parivahan portal, your state transport department or your RTO before acting.
Next in the series: Part 12: Making an Insurance Claim.
