The legally required bike insurance in India

Third-Party two-wheeler insurance is mandatory for every bike, scooter and EV in India under the Motor Vehicles Act, 1988.

Its premium is fixed by IRDAI and is the same across every insurer. The rate depends on engine size in cc, or motor power in kW for an EV. Prices start at ₹538 a year for a regular bike and ₹457 for an electric one. IRDAI can revise these rates through new circulars.

The law makes third-party cover compulsory because a single crash can cause serious injury or heavy damage. It guarantees victims are compensated even when the rider at fault cannot pay.

A Third-Party plan has no IDV and no upper limit on what the insurer pays for injury or death. Claims are decided by Motor Accident Claims Tribunals, which set the amount.

What happens if you ride without insurance

Riding without at least a valid third-party plan is an offence under the Motor Vehicles Act. The consequences are:

• A fine of ₹2,000 for the first offence
• ₹4,000 for a repeat offence, with possible imprisonment
• Personal liability for the full cost of any injury or damage you cause, which can run far higher than any premium

Note: Every new two-wheeler is issued a 5-year third-party plan at purchase, so a new bike is covered for the legal minimum from day one. Third-Party cover does not pay a rupee towards your own bike if it is damaged, stolen, or destroyed. For that you need Own Damage or Comprehensive cover.

Electric bikes use the same three plans, priced a little differently. See the electric bike insurance section for how EV pricing and cover work.

Beyond these three, add covers that fit how you ride. Off-road riders can protect their kit with a rider gear cover. EV owners can add battery protection, since the battery is the costliest part. See all optional covers.

Our take: If you have an old bike you rarely use, the bare legal minimum Third-Party may be enough. For a new bike under about 5 years, or any bike you would not want to pay to repair yourself, a Comprehensive plan is the safer choice. Own Damage suits riders who already hold a valid Third-Party plan and only want to add cover for their own bike.

Why choose Kiwi bike insurance?

Electric bike insurance explained

Electric two-wheelers are the fastest-growing part of the market. India registered more than 1.7 lakh electric two-wheelers in May 2026, a 63% jump on a year earlier. Insuring them correctly matters more than ever.

Things to know before insuring an electric two-wheeler

• Third-Party premium is set by motor power in kilowatts (kW), not engine cc, with rates fixed by IRDAI the same way as for petrol bikes
• EVs usually cost a little less to insure than a similarly priced petrol bike, thanks to a government discount on the own-damage premium
• The own-damage premium still depends on the bike’s IDV, so a pricier EV costs more to insure, just like any other two-wheeler
• The battery, motor, and charger are the costliest parts to replace, so it is worth checking they are covered before you buy, since they are not always included by default

A Comprehensive bike insurance plan is the most useful starting point for an EV. Cover for the battery, water damage in flood-prone cities, etc., can be added through optional covers.

What is IDV (Insured Declared Value) in bike insurance?

IDV (Insured Declared Value) is the most your insurer will pay if your bike is stolen or damaged beyond repair. It is set close to your bike's current market value, and it falls as the bike ages.

A higher IDV gives you a bigger payout if the worst happens, but it also raises your premium a little. Set it close to your bike's real market value, so you are neither overpaying nor underprotected.

The fall is driven by depreciation. IRDAI sets a standard schedule, from 5% in the first six months to 50% at five years, and your IDV falls in step. Since payouts are based on IDV, an older bike settles for less.

In numbers: a bike bought for ₹1,20,000 holds an IDV of about ₹72,000 after 4 years. If it is stolen then, the payout is ₹72,000, not the price you paid.

How IDV drops with vehicle age

Note: Indian bike insurance does not price on traffic violations or a points system. What matters is your claims history, through your No Claim Bonus. Claim-free years lower your premium; claims raise it. The own-damage premium is also set by zone. Zone A, the 8 largest metros, carries slightly higher rates. The rest of India falls in Zone B, which is a little cheaper owing to lower traffic density and claim costs.

How bike insurance prices are decided

A comprehensive bike insurance premium has two parts. The Third-Party part is fixed by IRDAI and is the same across every insurer. The Own Damage part is set by the insurer, based mainly on your bike's IDV. For a quick sense of cost, see the average price by bike type.

The rest depends on your city, bike age, engine size, and the covers you choose. The own-damage base premium is a small percentage of your bike's IDV, with metro cities at the higher end. Your No Claim Bonus and other discounts then bring the figure down.

In summary: Comprehensive premium = Own Damage − (No Claim Bonus + discounts) + Third-Party. Optional covers such as Zero Depreciation or Engine Secure sit on top and raise the premium in return for wider protection.

An 18% GST applies on top of these rates. New bikes are issued a 5-year Third-Party plan at purchase. Electric two-wheelers are priced on motor power instead, shown in the EV section. Rates are subject to revision by IRDAI. See the IRDAI notification for the current rates.

These are indicative ranges for a comprehensive bike insurance plan before your No Claim Bonus and discounts. Your actual price depends on the bike's IDV, your city, its age, and the covers you choose.

How to make the most of your bike insurance?

Getting the best value from your bike insurance comes down to two things - picking the right plan and the other decisions you make related to your bike insurance. Ways to lower your premium

• Keep your No Claim Bonus by skipping small repairs you can pay for yourself
• Choose a higher voluntary deductible to bring the premium down
• Fit an ARAI-approved anti-theft device for a 2.5% discount on the own-damage premium
• Set the IDV accurately, rather than too high
• Lock in a multi-year premium to dodge annual price hikes
• Compare plans before you buy, and renew on time so you do not lose your No Claim Bonus

Endorsements that plug specific gaps

Beyond the well-known optional covers, standard IMT endorsements add or modify cover for a small premium. Common ones extend cover to electrical accessories or fitted extras. They are a low-cost way to plug specific gaps.

Buy according to your needs

• New bike or scooter owner: Comprehensive with Zero Depreciation, plus Return to Invoice on a near-new bike, to protect its full value
• Daily commuter: Comprehensive with Roadside Assistance for city miles and the odd breakdown
• Off-road or touring rider: Add a rider gear cover and wider protection for the roads you actually ride
• Older, rarely-used bike: Weigh the own-damage premium against a low IDV; some owners keep a Third-Party plan alone

Our take: Depending on the type of bike you own, where you are located, and your riding experience, it is advisable to add optional covers for more protection.

This is an illustrative example. Your actual amounts depend on your vehicle, the damage, and your bike insurance plan.

To buy, you need your vehicle's registration certificate (RC), your previous policy details if you have one, and KYC such as PAN or Aadhaar. Vehicle inspection is needed if there's an uninsured period between the expiry of your previous policy and the start of the current policy.

For a brand-new vehicle, the make, model, and variant are enough to start, since the registration number may not be issued yet.

A new vehicle is issued a 5-year Third-Party plan at purchase, usually with a 1-year Own Damage plan. Most owners renew Own Damage yearly, though 2 and 3-year terms exist. A longer term locks your price and removes the risk of forgetting to renew.

At renewal you usually just confirm your bike number and details; you do not need to submit documents again if your cover has been continuous. The exception is a coverage gap. If your plan has already expired, the insurer may ask for a quick self-inspection through the app, or a brief physical inspection, before cover restarts, so it is best to renew before the expiry date.

On renewal, most owners take a 1-year plan, though longer Own Damage terms can be available. Buying for a longer term locks your price and avoids the risk of forgetting to renew.

After you buy your bike insurance

Once your policy is issued, your two-wheeler is protected under the plan you chose. The details sit in a policy document. Buy online without a gap and cover starts from the date on the document, issued within minutes of payment.

A standard renewal with no gap needs no manual approval; the policy is issued straight away. Approval steps appear only after a lapse or for an older bike, where a quick self-inspection or photos may be needed first.

What your policy document includes

You receive your policy document, the contract between you and the insurer. It includes:

• IDV
• Plan type
• Period of cover
• Optional covers
• Exclusions
• Premium
• No Claim Bonus
• Steps to claim

Reading the policy schedule tells you exactly what you are and are not covered for.

Your policy is emailed to you as a PDF and saved in your account or app, so you can download it any time. A digital copy stored in DigiLocker or the mParivahan app is accepted by traffic authorities, so you do not need to carry a printout.

How a bike insurance claim works

To make a claim, you report the incident to your insurer, who assesses the damage. The insurer then either settles the bill directly with the garage, or reimburses you: you pay first, and the approved amount is paid back once you submit the bills. The difference between insurers is not the steps. It is how much of the work lands on you.

Every handover is a number you call, a story you repeat, and a queue you wait in. None of it is hard, but all of it is yours to manage, at the exact moment you would rather not.

With Kiwi Insurance, you don’t do any of this

You get one dedicated Claims Specialist who takes your claim from start to finish. They review the claim you submitted, brief the surveyor, coordinate with a cashless partner garage or guide you through a Pay First claim at a non-network garage, handle the paperwork, and keep you updated. The only thing you do is hand over your vehicle and collect it.

Key things to know about your claim

A straightforward cashless claim usually settles within a few working days. Reimbursement claims, or those needing a survey or police report, can take longer depending on the documents and the damage.

A deductible is the part of each claim you pay yourself. The compulsory deductible is typically ₹100 for a two-wheeler, plus any voluntary deductible you chose. Without Zero Depreciation, you also bear the depreciation on replaced parts.

Zero Depreciation removes the depreciation cut. Consumables cover picks up the small items a claim leaves out. For very small repairs, paying out of pocket can be cheaper than losing your No Claim Bonus.

Once the repair is done and the claim is settled, your file is closed. The main after-effect is on your renewal: a claim usually resets your No Claim Bonus, so weigh a small claim against the discount you would lose.