First bike, first policy: a beginner buyer's guide

Introduction

The insurance paperwork for a new bike happens fast, usually in the last hour before you ride away from the showroom. The mandatory Third-Party cover, the 5-year bundle, the Own Damage decision, the optional covers, all of it is presented across several documents at once, often without a proper explanation of what each part means or what happens when you need to use it.

This guide is for first-time bike owners. It covers what you are legally required to have from day one, what the 5-year Third-Party bundle means in practice, which optional covers make sense for a new bike, what to check before the dealer finalises the policy, and what the first Own Damage renewal looks like once it arrives.

• 5-year Third-Party cover is included
• Own Damage cover is included if you want Comprehensive insurance
• The IDV is correct for your bike
• The required ₹15 lakh owner-rider PA cover is listed
• You know which optional covers you are paying for
• You have received the policy documents and premium breakdown

The sections below explain what each of these checks means and what to look for.

You also need the compulsory ₹15 lakh Personal Accident cover for the owner-rider. This is separate from Third-Party insurance and protects the owner-rider against death or permanent disability caused by a road accident.

So before you leave the showroom, check that both the required Third-Party and PA covers are reflected in your policy documents.

Riding without valid Third-Party insurance can result in a ₹2,000 fine for a first offence and ₹4,000 for a second or later offence. The law does not step up further for a third or later offence, it stays at ₹4,000 for every offence after the first.

A valid riding licence is also important. If you have a learner's licence, make sure you follow the conditions attached to it. Your insurance policy can also have conditions relating to who is allowed to ride the bike.

What this means practically for a first-time buyer:

• The 5-year Third-Party policy cannot be cancelled, switched, or moved to a different insurer for 5 years from the date of purchase
• The Own Damage policy comes up for renewal at the end of the term you chose at purchase, after 1, 2, or 3 years, and this is when the full choice of insurer and plan first becomes yours
• Standalone Own Damage policies, permitted since 1 September 2019, mean you can renew the OD component with a different insurer from the first OD renewal onwards, while the 5-year Third-Party bundle stays in place with the original insurer

The dealer handles the bundling at the time of purchase. The premium for both components is typically included in the on-road price or paid separately before registration. Make sure you receive 2 separate policy documents, the 5-year Third-Party document and the Own Damage document covering your chosen term.

If you choose only Third-Party insurance, damage to your own bike is your responsibility. That can be a significant expense with a new bike, particularly if it has expensive body panels, alloy components or other costly parts.

For many first-time owners, Comprehensive insurance is therefore worth considering because it protects both the required Third-Party liability and the bike you have just purchased.

The compulsory deductible also applies to every Own Damage claim. For bikes, this is roughly ₹100 as fixed by IRDAI. This applies in addition to any depreciation deducted from the claim and cannot be removed through an optional cover.

The following optional covers are not available for bikes: Key Secure and Tyre Secure.

Compulsory PA cover confirmed: The ₹15 lakh PA cover for the owner-rider must appear on one of the policy documents. Check before leaving the showroom.

Premium breakdown itemised: Ask for a breakdown showing the Third-Party premium, Own Damage premium, optional cover premiums, and GST at 18% separately. This makes renewal comparison easier and helps you understand what you are actually paying for each component.

• Registration Certificate (RC): Issued after registration, carries the bike's registration number, which is the identifier on all future policies and required when raising a claim
• Insurance policy documents: Both the 5-year Third-Party document and the Own Damage document, store digital copies in an accessible location; Kiwi's bike insurance app allows you to store and access policy documents digitally
• Riding licence: Valid for the category of two-wheeler being ridden, check the validity date and the vehicle class listed; a learner's licence requires a licensed rider in the front passenger position at all times
• Pollution Under Control (PUC) certificate: Mandatory for all two-wheelers, new bikes typically come with a PUC certificate valid for 1 year from the date of sale; the certificate is required for riding on public roads
• Helmet: Wearing a helmet is mandatory under Section 129 of the Motor Vehicles Act for both the rider and the pillion rider, riding without one is a punishable offence and voids safety in an accident

For a claim, keep photos of the bike's damage and, where required, a copy of the FIR, such as in cases involving a third party or theft. It also helps to have your policy number readily available on your phone when you need to raise a claim.

Your 5-year Third-Party cover continues with the original insurer, but you can:

• Renew your OD cover with the same insurer
• Move to another insurer with a standalone OD policy
• Compare IDV, OD premiums and optional covers before renewing

Your No Claim Bonus (NCB) also comes into play at this stage. If your OD cover remained claim-free, you can receive an NCB discount on the OD premium at renewal. The discount can increase with each additional claim-free year.

This is also a good time to review your bike's IDV. It should reduce as the bike depreciates, but the figure should still be reasonable for its current value. Compare the renewal IDV with similar bikes in the market before renewing.

• Only with Kiwi Insurance, once you register your claim, a dedicated Claims Specialist is assigned to you, one personal contact who explains the process and the documents in plain language from registration through to settlement.
• Your Claims Specialist stays reachable through the Kiwi app throughout the claim, you do not repeat your situation to a different agent each time you follow up.
• The Claims Specialist is assigned after you register a claim, not at the point of buying the policy.

With Kiwi Insurance, a dedicated Claims Specialist is assigned once you register a claim, one contact, plain language, from registration to completion.