Two-wheelers are one of the most preferred mode of transportation among people of most ages. Its popularity can be attributed to the convenience that comes with such vehicles. Though they are cheaper in price when compared to cars, the price tag of most bikes and scooters can still cause a sizeable dent on your savings.  

Two-wheelers are a big investment and much like most other valuables, they need to be insured too. Two-wheeler insurance policies are mostly bought by vehicle owners to comply with the Motor Vehicle Act, 1988. Under this act, it is mandatory for motor vehicles to have an insurance to legally ride on the roads of India.  

Due to this obligation, vehicle owners have a tendency to sign up for an insurance policy without much research to get away from the legal liabilities.  

Important things you should know about two-wheeler insurance 

There are numerous important aspects that you must know about a two-wheeler insurance policy before investing in it. Mentioned below are a few of them:  

Importance of a comprehensive cover: A third party two-wheeler insurance policy is a basic policy. It only covers the third party vehicle’s damages in case an accident occurs. Though such plans are cheaper and will keep you out of trouble, they are almost useless when it comes to protecting your own vehicle. A comprehensive policy will offer you wholesome coverage by protecting your vehicle against damages, theft, natural disasters, etc.  

Ownership of the vehicle: When planning to buy a used vehicle, it is important to learn about the insurance plan it is currently under. Make sure that the insurance is transferred to you i.e. the new owner. In such cases, the insurer must also be informed and all the necessary information related to the vehicle has to be provided.  

Insured Declared Value: The Insured Declared Value (IDV) is an important aspect in two-wheeler insurance. The IDV is calculated based on the market value of the vehicle and depreciation. The IDV is the value of the vehicle that will be paid out in case of theft or complete damage.   

Add-ons: A comprehensive policy offers coverage against damages, theft, etc. However, investing in addon covers can substantially enhance that coverage. You can choose from additional covers like pillion rider cover, fire cover, etc. 

No Claim BonusThe No Claim Bonus (NCB) refers to the cumulative bonus that is offered for every claim-free year. The NCB can be used to avail discounts on the renewal premium. Usually the discount rate increases every year. NCB starts at 20% and may increase to 25%, 30%, and so on with each claim-free year.  


two-wheeler insurance plan is meant for protecting your vehicle. Therefore, it is important to keep the needs of your two-wheeler in mind when investing in one. Understanding the policies and comparing the IDV and premium rates is extremely important. It will help you find a plan that offers optimum benefits at affordable premium rates.