Two-wheeler Insurance

Two-wheeler insurance is similar to wearing a helmet while riding your two-wheeler, a helmet is a physical security whereas an insurance policy is a financial security. Technically, a two-wheeler or bike insurance is a contract between you and an insurance company, through which you get compensation or paid in case of any loss or physical damage to your two-wheeler. Such a loss or damage can be due to collisions, thefts, natural calamities, sabotage or even fire. Two-wheeler insurance also covers third-party liabilities arising due to injuries/damages as a result of a bike accident. The Motor Vehicles Act, 1988, makes it mandatory to avail at-least Third-party Liability Insurance for every rider. Riding a two-wheeler in India without a valid Third-party Liability Insurance is a punishable offense.

Factors that affect Two-Wheeler Insurance Pricing

The amount of premium that you pay while buying the policy becomes the cost of your insurance policy. The final payment depends on the following factors:

Value of the Bike

The market value of your bike affects the premium. This is also known as the insured declared value (IDV). IDV is the maximum amount that you can get during a claim. The sum assured does not exceed the IDV of your bike.

The higher the value, the higher the premium.

Extent of Coverage

A Third-party Policy only covers the third-party liability arising due to accidents. On the other hand, a Comprehensive Insurance Policy covers own-damages apart from third-party liabilities. It also provides protection against fire, theft, sabotage, natural calamities, etc.

The wider the coverage, the higher the premium.

Age of Bike

An old two-wheeler is likely to have a lower IDV. A lower IDV means a lower premium. However, an old bike is more susceptible to damages. This higher risk can push premiums.

The older the bike, the lower the premium (if it is in a good condition).


To ensure a better financial protection you might buy extra coverage in the form of Add-ons. You need to pay extra for such Add-ons.

The more the Add-ons, the higher the premium.

Security Features

Your bike is more susceptible to losses in the absence of Anti-theft Devices and other security features. By installing these, you reduce the chances of loss.

The better the security, the higher the chances of your insurer offering you discounts.

Claim History

If in a year, you do not make any claims, you get a no-claim bonus (NCB). This NCB can be in the form of discounts on your premium.

The cleaner the claim history, the lower the premium.

How to Renew Two-wheeler Insurance Policy?

You need not buy a fresh bike insurance policy every year.

This can either be done online, through mobile phone applications, or via the traditional ways of renewing through your agent or visiting the branch.


  • Go to your insurance company’s website.
  • Fill in the online renewal form available there.
  • You might need your old policy details.
  • Ensure that you enter the correct details.
  • Keep your debit card or net banking details ready to make the payment.
  • Once the form is complete, you get to check all the details that you entered.
  • Check the details, click on confirm, and proceed towards making the online payment.
  • You will then get your renewed policy in a PDF file.
  • Save this and take a printout of the same.

Mobile App

Some of the insurance companies have their own mobile apps, while some have mobile websites working like an app. Basically, you can renew and pay for insurance from your phone too.

The process is similar to that of online renewal. You must enter all the information correctly. Check twice before making the payment.

By visiting the branch

This is the traditional way of renewing your policy. The process is more or less the same, except that, you will have to carve out time in your schedule for going to the branch or meeting the agent. You get your new policy, by post, if you pay by debit card, demand draft or cheque.

What is covered in Two-Wheeler Insurance

Depending on the type of two-wheeler policy you buy, you will be financially covered against third-party liabilities, theft, own damage, natural disasters, man-made disasters, etc. Lesser the cover, cheaper the policy and vice-versa.

Third-party Bike Insurance

Third-party Bike Insurance covers the damages to another individual, their vehicle or property due to accidents caused by your bike.


  • Damange to third party vehicles

Comprehensive Bike Insurance

Comprehensive Bike Insurance offers Third-party Liability coverage as well as ‘Own Damage’ and ‘Personal Accident’ covers. This means it covers you, your two-wheeler and third-parties from all possible damage due to fire, theft, accident, sabotage, natural calamities, etc.


  • Own Damage
  • Damage to a third-party vehicle
  • Theft
  • Damage due to fire
  • Damage due to natural causes
  • Depreciation fees
  • Personal Accident cover
  • (Optional Add-on) Engine protection
  • (Optional Add-on) Zero Depreciation
  • (Optional Add-on) NCB protection
  • (Optional Add-on) Invoice cover

What's not covered?

Mechanical or electrical breakdown

Damage during war and similar conditions

Damage when policy is not active

Regular servicing and expenses due to wear and tear of the vehicle

Damage when driving a vehicle without a valid license or using the vehicle for illegal activities

Driving a vehicle that you do not own

Damage when driving under the influence of alcohol or intoxicating drugs

Damages caused outside the geographical boundaries of the country

Tire or tube punctures (You get 50% of the cost of repair/replacement if your two-wheeler is damaged at the same time)

Extra Covers for Two-wheeler Insurance

You can widen the scope of your insurance’s coverage by opting for additional covers. These additional covers are known as Add-ons. These Add-ons do not come cheap, you need to pay extra for buying these covers but they are extremely beneficial. Here are a few useful add-ons that you must know of:

Zero Depreciation

The value of your bike and its parts reduces over time due to wear and tear. The insurance company takes depreciation into consideration, which results in a lower claim amount. You need to bear the difference in cost of repairs and claim amount.

Zero depreciation add-on pays or compensates you without calculating the depreciation of your bike. It also covers repair/replacement costs of rubber, nylon, plastic and fibre components of your two-wheeler.

Passenger cover

Passenger cover also known as Pillion Rider Add-on protects the person seated behind you on your bike against financial losses.

If the pillion rider is injured, the treatment cost is taken care of.

This is different than the Personal Accident Cover for the rider. This Add-on is purely for the pillion rider.

NCB Protect

NCB Protect ensures that your No Claim Bonus (NCB) is still valid even after you raise claims during a policy year.

A maximum of two claims a year are considered under NCB Protect.

Return to Invoice

In case of total loss or theft, this Add-on pays the original invoice value of your bike to you.

It also includes the registration charges of your two-wheeler and the road tax paid.

Which Are the Terms Related to Insurance?

Understanding the bike insurance policy becomes easier if you understand the language used. Here are some of the words you need to be aware of while purchasing an online bike insurance policy in India:

Third-party Liability

In insurance, you are the first party. Your insurer is the second party. Everybody else becomes the third party. Third-party liability is the financial responsibility you assume if your bike causes loss or damage to a third party or their property.

Material Fact

The insurance company arrives at the premium amount, or accepts or declines your application based on the information that you provide. A material fact is such an information that would affect the insurer’s decisions. Your claim can be rejected if you do not disclose all the material facts about your bike.


It is a pre-determined amount that you pay from your pocket when you make a claim. There are two types of deductibles – Compulsory and Voluntary. A compulsory amount is deducted by your insurer at the time of claim. On the other hand, a voluntary excess is a cost you bear willingly over and above the compulsory excess. Only after paying this voluntary excess, you can get the rest of the claim amount from the insurance company.


This is a term used in the case of Comprehensive Insurance Policies.It covers you and your bike against any loss or damage due to accidents, and natural or man-made calamities.

How to Buy Two-wheeler Insurance Online?


First, check your personal needs, priorities, and requirements.Also, understand the requirements of your bike.Asking questions like how old is the bike? What is its current value? etc. will help you get an idea about the cover that you need.


Look at all the policy options available online. Compare the benefits they offer.Look out for extra services and Add-ons available for your bike. Even a Comprehensive Bike Insurance Policy does not cover certain liabilities. Be mindful of these exclusions before you apply. Do not simply go for the lowest option with regards to pricing, look at it holistically.


Based on your assessment and detailed examination, select the plan that best suits your needs and then apply.


Fill in the application form and pay the premium. This can easily be done online within minutes. The insurance company examines your bike and may approve your application.You must then read the policy documents carefully.

For more questions visit Bike Insurance FAQ page.

FAQs Two-wheeler

The Motor Vehicles Act, 1988 makes it mandatory for all vehicle owners to insure their vehicle if they want to drive legally on Indian roads. Apart from the mandatory aspect, insuring your two-wheeler is a precautionary measure undertaken to overcome financial losses involving the insured vehicle in case of an unfortunate event such as an accident.
Buying a bike insurance policy is very simple and can be done within a few clicks. However, you need to be aware of your requirements before finalizing a bike insurance plan. Once you are clear on the type of coverage you need, go ahead and compare different policies available online. Also, remember to set the correct Insured Declared Value of our bike before buying a comprehensive plan online.
Buy two-wheeler insurance online to avail the following benefits:
  • Convenience – You can purchase a two-wheeler insurance policy at your convenience, without depending on any third party.
  • No Commission – As there is no third-party involved, there is no need to pay any commission.
  • Affordable – Two-wheeler insurance prices of online policies are less as compared to offline policies and policies purchased through third parties.
  • Security – When you buy two-wheeler insurance online, there is no chance of losing your money. Transacting online is safe, provided you log on to an authentic website.
  • Informed Purchase – You can research, read, understand, compare, and make an informed decision while buying two-wheeler insurance online.
Purchasing or renewing motor insurance online involves the following simple steps:
  • Select the preferred insurance company and visit its website
  • Enter the required details related to you and your vehicle
  • Choose insurance plan
  • Select Add-on covers if applicable
  • Make secure, online payment
  • Receive policy in inbox
You do not need to submit any physical documents to buy two wheeler insurance online. We hate paperwork as much as you do. That’s why we help you deal with insurance instantly, simply at the tap of a button.
Buying bike insurance is mandatory by law. Thus, if you let your policy expire you will be liable to pay fines. Apart from that, you will no longer be covered under the benefits of insurance. This will result in heavy financial losses in case of an unfortunate event. You may also lose the accumulated No Claim Bonus (if any) if you do not renew the policy for more than 90 days. Thus, always renew your bike insurance policy on time.
The following risks* are covered under Acko’s Two-wheeler insurance policy:
  • Third-party Cover
  • Damage due to accident
  • Damage due to fire
  • Damage due to calamities
  • Bike theft
  • Injuries to bike owner
* Please refer to the relevant policy document to understand the coverage in detail.