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Bike Insurance Secrets That You Should Know As A Policyholder

Team AckoJan 18, 2024

It is a known fact that buying a bike insurance policy will provide coverage against financial and legal liabilities in case of a mishap. But as a policyholder, there are some insurance secrets that you might not be aware of. By knowing these secrets, you will be able to save money while buying/renewing the insurance policy. So, read on as this article will throw light on Bike Insurance Secrets that you should know as a policyholder.




Two-Wheeler Insurance Secrets That Your Insurer Won’t Tell You:

So, let’s jump into the topic and look at some of the bike insurance secrets:

1. Two-wheeler Make and Model:

The make and model of your two-wheeler plays a vital role in determining the cost of insurance. Insuring a high-end superbike can be expensive when compared to insuring a commuter bike/scooter. Similarly, repairing a high-end bike is expensive when compared to a commuter bike. Also, the manufacturing year of the two-wheeler matters, as it determines the IDV (Insured Declared Value) of the vehicle.

2. Pay for Minor Claims:

Making a bike insurance claim might cover the repair costs, but at the same time you might lose out on the NCB (No Claim Bonus) discount. NCB is nothing but the discount offered by the insurer for making no claims during the tenure of the insurance policy. You will get the discount while renewing the 2-wheeler insurance policy. So, it’s better to avoid filing claims for minor damages.

3. Save on Bike Insurance Premiums:

Yes! You can save on bike insurance premiums. Well, it does not mean that you opt for a policy with inadequate coverage. You can reduce the cost of two-wheeler insurance by following the below pointers:

  • Install an anti-theft/security device on your two-wheeler. The chances are that the insurer might offer you an additional discount due to the reduced risk of theft.

  • Declare the correct IDV (Insured Declared Value). Depending on the IDV, the cost of insurance is calculated.

  • Avoid modifying your bike/scooter as such modifications will increase the insurance premium. Also, renew the policy in time to avoid additional insurance charges.

  • Last but not least, ride safely on the road to avoid unnecessary damages to your two-wheeler.

4. Claim History is important:

Your claim history affects the insurance premium. If you make too many claims during the tenure of the policy, it means that you are an unsafe rider. The insurer might consider you as a high-risk profile due to the frequent damages caused to your vehicle, and it might increase the bike insurance premium.

On the other hand, if you make no claims, the insurer will treat you as a safe rider. The benefit of making zero claims is the NCB discount offered by the insurer. The percentage of discount increases with each claim-free year, and you can avail a maximum discount of 50 percent. But note that, to avail the discount you have to renew the policy in time.

5. You will not lose No Claim Bonus by switching Insurance Company

No Claim Bonus or NCB is a discount offered by the insurer for making zero claims during the tenure of the policy. You can avail this discount even if you switch to a different insurance company. All you have to do is get a transfer letter from your previous insurer and submit the same to the new insurance company. When the transfer process is complete, the NCB discount should reflect in your insurance policy.

Bike Insurance Facts that you should know as a Policyholder:

Apart from the above-mentioned bike insurance secrets, as a policyholder, you should also know the fundamental facts of two-wheeler insurance. Below are the points that you should know as a policyholder:

1. Add-on Covers:

While buying a Comprehensive Insurance Policy for your two-wheeler, you will get the option to choose add-ons. They are individual covers which you can purchase to enhance the policy coverage. Note that it is not compulsory to buy add-ons. You can choose the add-ons depending on your requirement and the two-wheeler you own. Buying add-ons will also increase the 2-wheeler insurance premium.

2. Towing Fees:

If your two-wheeler breaks down and you are stranded on the middle of the road, the roadside assistance service will come to your rescue. If you opt for Roadside Assistance  (RSA) add-on cover for Comprehensive Bike Insurance Policy, your insurer will arrange the roadside assistance service for you.

If your bike/scooter needs to be towed to the nearest garage/service centre, the RSA will also arrange a tow van/truck. With the RSA add-on cover, the towing fees will be covered, up to an amount mentioned in the insurance policy.

3. Types of Bike Insurance Claims:

There are two types of bike insurance claims, cashless claim and reimbursement claim. It all depends on where you repair your two-wheeler. If you repeat the insured two-wheeler in a network garage, then you can apply for a cashless claim. But if you get the repair work done in a non-network garage, you need to pay the repair bill from your pocket and then apply for a reimbursement claim with the insurer.

4. Filing a Total Loss Claim:

In case your two-wheeler is totalled in an accident, then you can apply for a total loss claim with the insurer. But it doesn’t mean that the insurance policy will pay you the replacement cost of the two-wheeler. The insurer will pay you the IDV of the vehicle in case of total loss or theft.  The IDV is calculated depending on the age and condition of the vehicle and the ex-showroom price set by the manufacturer.

Note: You can contact your insurer to know the exact process of applying for an NCB transfer letter.

5. Voluntary Deductible in Bike Insurance:

A deductible is a percentage of the amount that the policyholder has to pay in case of damages to the insured vehicle. For instance, if the deductible is zero, then the insurer will pay the entire claim amount. But if you opt for a certain percentage of voluntary deductible, you will have to pay some amount for the repair of your two-wheeler.

A voluntary deductible can be also called as an advanced investment for repair of your vehicle. The higher the deductible, the lower the insurance premium, and vice-versa. When deciding the voluntary deductible, account the factors such as the model of the vehicle and your riding style.

6. Modifying your two-wheeler can increase Insurance Premium:

Modifying your motorcycle/scooter can be beneficial in terms of looks and features, but it will also increase the bike insurance premium. A Comprehensive Bike Insurance Policy covers accessories mentioned by the manufacturer. Any aftermarket parts or accessories will not be covered by the insurance policy.

For instance, if you fit a GPS device for navigation on your motorcycle, it will not be covered by the insurer. You should make a special request to the insurer to cover such accessories. And it will increase the premium of the insurance policy.

7. Higher the IDV, higher the Insurance Premium:

IDV is the value of your two-wheeler you declare when buying a two-wheeler insurance policy. If you declare a higher value, then you will have to pay a higher insurance premium. On the other hand, if you set a lower IDV for your two-wheeler, you will have to pay a lower premium. But it will affect the claim amount you would receive in case of total loss or theft of the insured vehicle.

Note:It is always better to set the correct IDV of the two-wheeler by determining the current market value of the vehicle.

8. Insurance Company can reject your claim:

The insurance company can reject your claim under certain circumstances:

  • If the two-wheeler is damaged or stolen due to your negligence, then the insurance company can reject your claim citing carelessness 

Example: Imagine you park your motorcycle on the main road and head out for shopping and you leave the keys on the bike. Now, when you return, you find that your motorcycle is stolen. Now, this incident has occurred because of your irresponsibility, and the insurer can reject such claims because it could have been avoided in the first place.

  • If you repair the insured two-wheeler without intimating the insurer and then apply for a reimbursement claim, the insurance company might reject such claims. Always inform the insurer about the damages to your vehicle, this ensures transparency and trust between you and the insurer. After the intimation, the insurer will survey the damages, and then you can get the vehicle repaired and apply for a reimbursement claim.

  • Your claim can be rejected if you do not hold valid documents. If your motorcycle/scooter is damaged when you do not have documents such as driving licence, registration certificate, valid insurance policy and PUC, then the insurer can reject your claim.

Note that it is an offence to ride a two-wheeler without valid documents, and it can attract penalties.

  • Your claim can be rejected if you do not provide adequate information about the damages or if the claim is made outside the scope of coverage of the policy. Also, if the claim is found to be fraudulent, then the issuer will reject such claims.

9. You can get the Invoice Value for your old two-wheeler if it’s stolen:

If your old motorcycle gets stolen or suffers a total loss in an accident, you can still apply for a claim for the invoice amount of the two-wheeler. Yes, this can be done with the help of the Return to Invoice add-on.

You can purchase the Return to Invoice add-on while buying/renewing a Comprehensive bike insurance Policy. The add-on cover will enable the insurer to pay the amount mentioned in the invoice of the two-wheeler.

10. Renew the insurance policy in time to avoid losing NCB:

By now, you are well aware of NCB in Bike Insurance and its benefits. But if you don’t renew the bike insurance policy in time, then you will lose all the NCB discounts that you have accumulated over the years. So, renew the policy before it expires. But due to some reason if you are unable to renew the policy before the due date, at least renew it before 90 days to protect the NCB discount. Note that an expired insurance policy does not offer any cover, and it might also increase the insurance premium while renewing the lapsed policy due to additional service charges.

Also, read: Online Two-wheeler Insurance Premium Calculator

The Bottom Line:

A bike insurance policy will provide coverage against financial and legal liabilities arising due to damage to your vehicle or damage to third-party property or life. The insurance company will bear the costs incurred due to compensating third-party or repairing your vehicle, depending on the type of policy. As a policyholder, you need to know the fundamentals of bike insurance. You should perform thorough research before buying an insurance policy. Once you are aware of how bike insurance works, you will be able to choose the right insurance policy for your two-wheeler. Also, if you have any doubts regarding the policy, do not hesitate to contact your insurer to solve your query.

Frequently Asked Questions:

Below are some of the most commonly asked questions about Bike Insurance:

1. Why do I need to buy an insurance policy for my two-wheeler?


Riding a two-wheeler without valid insurance is an offence in India. You need to buy at least a Third-party Bike Insurance to comply with the rules and regulations. Failing to do so will attract hefty penalties.

2. What happens if I don't renew the 2-wheeler insurance policy in time?


If you do not renew the bike insurance policy within the due date, you will no longer be covered by the insurer. Also, you will lose out on NCB discounts if you do not renew the policy for a long time (90 days). Lastly, you might end up paying additional charges if you renew the policy after it has expired.

3. How can I apply for a bike insurance claim?


You can apply for a bike insurance claim either offline or online. For offline claims, you need to submit the duly filled claim form and all the supporting documents to the insurer. For online claims, you can visit the insurer's website and file a claim by uploading the soft copies of the documents.

4. What are the documents required to file a bike insurance claim?


Below are the required documents to file a bike insurance claim:

  • Insurance Policy Certificate

  • Vehicle Registration Certificate

  • Driving Licence

  • Duly filled claim form (For offline claims)

  • Photograph/Video of the damages

  • Identity proof

  • Any other supporting documents

  • First Information Report (If required)

5. Can an insurance company reject a theft claim?


Yes, an insurance company can reject the theft claim if the policyholder does not provide adequate evidence to prove that the vehicle is stolen. For instance, while filing a theft claim, one needs to submit the keys of the vehicle along with other supporting documents. Failing to submit such vital evidence will result in claim rejection.

6. Can I repair my motorcycle before intimating the insurer?


No. You should not repair the vehicle before informing the insurance company. Because if you repair the motorcycle, the insurer will not know the amount of damage suffered by the vehicle. Usually, the insurer inspects the damages to calculate the claim amount to be paid. After that, you can repair the two-wheeler and apply for a reimbursement claim. But if you repair the vehicle beforehand, the claim will be rejected.

7. Will the insurer cover the aftermarket accessories installed on my bike?


No. The insurance company does not cover any accessories which are not fitted by the manufacturer. But you can request the insurer to include the aftermarket accessories in the insurance policy. Not that including such accessories in the policy cover will increase the insurance premium.

8. Why is it not recommended to file a claim for minor damages?


Filing a claim for minor damages will result in losing vital benefits such as NCB discount. So, it is better to not register a claim for minor damages.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.


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