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Is the entire two-wheeler covered by the bike insurance policy?

Team AckoJan 17, 2024

A bike insurance policy is a pretty straightforward document if you know what is covered under the plan you choose and what is not covered. You can claim against a certain type of bike damage if you have purchased the related coverage.


But sometimes, insurance companies may have conditions for offering coverage on some bike parts. Specific parts may be fully or partially covered, while some are completely excluded from the policy. In this article, we shed light on whether your bike insurance policy covers the entire bike. Let’s begin.



Do all types of bike insurance policies offer coverage for my bike?

There are different types of bike insurance plans available in the market. While some fulfil the legal requirements, others offer extensive coverage. You must choose a plan that is best suited to your needs. Here are the basic types of bike insurance plans.

Third-party Bike Insurance Plan

The law in India requires every bike owner to buy at least a Third-party Liability Insurance plan for their bike. This enables the bike owner to pay compensation to a third party affected by their bike. 

For example, this policy offers compensation benefits for death, disability, property damage, etc. in case of accidental damage to a third party. Without this plan, you need to pay the entire compensation amount from your pocket. This can amount to lakhs of rupees depending on the severity of the accident.

It is important to understand that a basic Third-party Liability plan does not cover your bike. So even if you buy a third-party bike insurance policy, you still have to bear the cost of damage suffered by your bike.

Comprehensive Bike Insurance Plan

The second major type of bike insurance policy is the Comprehensive Plan. Its coverage benefits are way more than the basic, government-mandated Third-party Plan. A Comprehensive Bike Insurance policy offers the benefit of a Third-party policy along with coverage for your bike. 

When you buy this plan, you can raise a claim to get financial help from the insurance company at the time of an accident. You can even increase the scope of this policy if allowed by the insurance company. Now, this brings us to the main question.

Are all bike parts covered under a Comprehensive Bike Insurance Policy?

An insurance company makes a promise of providing financial help in case of accidents. But this promise is made under certain terms and conditions you and the insurer will abide by during the course of the policy. As per these terms, only certain types of parts are covered with insurance.

As far as other parts are concerned, you may have to buy separate coverages for them. For example, the engine of a bike is not covered in a basic Comprehensive Bike Policy. You need to buy separate coverage if you wish to get it insured. But doing so will increase the premium.

What is depreciation?

Every two-wheeler, or any other vehicle for that matter, suffers depreciation as time passes. So depreciation can be defined as the decrease in the price of a bike with time. Depreciation comes into the picture while calculating the premium of your policy and the claim amount in case of bike damage.

What is the role of depreciation in calculating the claim amount?

Depreciation on the bike is deducted from the claim amount. It is used to calculate how much each bike part costs. The following table is used for calculating the depreciation of different bike parts during claim settlement.

Bike part Depreciation
Bike parts which are made up of rubber, plastic, or nylon part 50%
Bike parts that are made with fiberglass 30%
Any part made up of glass 0%

The insurance company will take the age of the bike and the material used in bike parts into consideration while calculating the claim amount. This is how depreciation plays an important part during claims.

Things to consider before choosing a bike insurance plan

Here is a list of things you must consider before buying a bike insurance plan.

1. Plan type

Choose your bike insurance plan carefully. Buying only the basic Third-party Policy can be counterproductive in case your bike gets damaged.

2. Setting the IDV

IDV or Insured Declared Value of the bike is the approximate current market price of the bike. You will have a certain amount of control over this value while buying a Comprehensive Policy. Note that decreasing the IDV will reduce the premium but also reduce the claim amount. And increasing the IDV will increase the premium. Choose the right value by keeping the current market price in mind.

3. Services of the insurer

Choosing a good bike insurance company is as important as choosing the right coverage. Look for an insurer that has less turnaround time when it comes to services. For example, you can purchase your policy within a few minutes at ACKO. You can raise a claim instantly through our mobile app. And we offer a lot of discounts on bike insurance premiums as well.

In a nutshell

Bike insurance is supposed to act as a backup if you suffer an emergency like an accident. Your policy will help you protect the savings and send the bike for repairs faster. But it is also true that the entire bike is not covered with insurance. You may have to contribute to pay the repair bill. This still reduces your financial burden and provides other benefits of having a bike insurance policy.

Frequently asked questions

Here is a list of questions about bike insurance and coverage for bike parts. In case you have anything to ask, you can get in touch with us by sending an email at [email protected].

Can I claim bike insurance for the regular servicing costs of the bike?


No, bike insurance is a backup that will help you in case of an unexpected emergency like an accident. You can claim only for the damage covered under the policy and not for regular wear and tear.

Somebody stole my bike, can I make a bike insurance claim?


You can make a bike insurance claim for bike theft i.e. stolen bike only if you have the related coverage. You need to have a Comprehensive Bike Insurance Policy to receive theft coverage for any possible instances.

Are the tyres covered under the policy?


The insurance company may provide coverage only if the tires get damaged due to an accident. Coverage for regular wear and tear of the tyres is not covered even under a Comprehensive Bike Insurance Policy.

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. Explore More:


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