Is bike insurance mandatory in India and what the law says

Introduction

Under the Motor Vehicles Act, every registered 2-wheeler in India needs at least a Third-Party insurance policy before it can legally be on the road. Bike insurance is mandatory in India, and riding without it is a traffic offence, whether the bike is new or several years old.

The law exists to protect the people a rider might injure, not the rider or the bike itself. A Third-Party insurance policy pays for injury or damage caused to someone else, which is why the requirement applies no matter how carefully someone rides.

This requirement is tied to registration, not to where you live or ride. A 2-wheeler registered in one state and ridden in another still needs the same valid Third-Party cover, because the requirement comes from central law, not a state rule.

If you want your own bike covered as well, you need a Comprehensive or Own Damage policy, which is optional under the law. Many riders choose this anyway, because a Third-Party policy alone leaves the rider's own bike completely unprotected.

Choosing not to add this extra protection does not reduce or remove the compulsory Third-Party requirement in any way. The two decisions, compulsory cover and optional cover, are entirely separate from each other.

Cost for 2-wheelers

These are the regulated base premiums. A new 2-wheeler must have five-year Third-Party cover, which is why you will usually see the five-year figure when buying a brand-new bike. For existing bikes, Third-Party cover is generally renewed annually.

Cost for EVs

EVs do not have engine capacity in cc, so their Third-Party premium is based on motor power in kilowatts (kW). They also receive a 15% discount on the corresponding petrol two-wheeler rate.

So, if you are buying or renewing Third-Party cover, you can work out the base premium from your bike's engine capacity or your EV's motor power. The final amount you pay can be higher once applicable taxes and any other selected covers are added.

Beyond the fine, riding without insurance also leaves you personally responsible for any injury or damage you cause in an accident, because there is no policy in place to cover that liability. This applies whether or not the accident was serious.

Carrying proof of your Third-Party policy while riding is worth doing alongside your registration certificate and driving licence, as a traffic check usually asks for all three together.

The requirement is linked to using a registered vehicle on public roads, not how often you ride it. So even if you use your bike only occasionally, it still needs valid Third-Party insurance when you ride it on the road.

A 2-wheeler that is not being used on public roads is different. Keeping a registered bike at home does not mean you are riding without insurance, but you need valid cover before taking it out on the road.

What makes this easier with Kiwi is that your policy stays with you in the Kiwi Insurance app. You can access your current policy whenever you need it, so you are not caught off guard during a traffic check or when you need to check your insurance details.