Two-wheeler Insurance

Majority of the Indian population today owns a two-wheeler. It is one of the most preferred modes of transportation among people. While you own a two-wheeler, it is also essential to have a bike insurance and be a responsible rider. The Motor Vehicle Act, 1988 mandates acquiring a two-wheeler insurance for all the two-wheeler owners.

A bike insurance provides financial protection against any damage or loss caused due to natural or man-made disasters, theft, accident, vandalism, terrorism, and more. It also covers the legal liability of third-party in case of any damage or loss caused by the insured vehicle, along with the damages suffered by the policyholder.


Features and Benefits of Two-wheeler Insurance Policies


Here’s a quick glance at the features offered under bike insurance/two-wheeler insurance by Bajaj Finance:

Time taken to buy a bike insurance Less than a few minutes
Hassle-free renewal Smooth renewal of two-wheeler insurance
Network Garages Available
Customisable add-ons Available
Own-damage cover Protection against fire, theft, accidents, etc.
No Claim Bonus (NCB) benefits Get up to 50% discount
Easy claims Seamless digital process
Comprehensive cover Available
Third-party liability cover Available

Read on to know about other important features and benefits offered under a bike insurance.

  • Choice of coverage

    You can choose from the three types of insurance available-- third-party, stand-alone own-damage or comprehensive insurance that suits your needs the best. Third-party insurance is mandatory in India and provides coverage for the third-party liabilities in case of an accident causing injury, death or damage to the property of the third person. The comprehensive bike insurance offers extensive coverage comprising of third-party, stand-alone own-damages and additional services.

  • Quick online process

    With an easy online process, you can buy and also renew your bike insurance from the comfort of your home. You can log in to the insurer’s website or use the app services provided by them to seek a digital policy for your bike. As soon as you complete the process online, a digitally signed two-wheeler insurance policy is issued instantly.

  • No claim bonus

    No Claim Bonus (NCB) is a reward or discount offered by the insurers for having a claim-free year. It helps you reduce the premium at the time of renewal. Depending on your insurance service provider, you can easily get a discount of up to 50% on your next policy premium. You can also transfer your NCB up to 50% while switching over to another insurance provider.

  • Receive discounts

    IRDA-approved insurers offer discounts on the insurance policy for the bike. These discounts can be for the premium paid or the NCBs. These discounts are commonly given if you are a member of a recognised automotive association, or if you have an anti-theft device installed, or if you have a good rider history.

  • Additional covers

    Bike insurance also offers few additional covers like accident cover for the pillion rider, coverage for spare parts or accessories, or zero depreciation among others. These covers will increase your premium amount slightly but will give you peace of long-term policy. Long-term two-wheeler insurance is valid for up to 3 years. So, you don’t have to worry about renewing it annually. Plus, the insurer will send a notification in advance when your policy is about to expire, for the timely renewal of the policy.

  • Easy claims and inspections

    Bajaj Finance offers a hassle-free process for two-wheeler inspection at the time of policy purchase along with seamless claim settlement.

  • Easy renewal without inspections

    You can renew your bike insurance within a few minutes without inspection or documentation at the time of policy renewal with Bajaj Finance.

Types of Two-Wheeler Insurance

There are two types of two-wheeler insurance:
Comprehensive insurance: As the name suggests, this insurance provides comprehensive coverage and is highly recommended. It covers damages for an insured two-wheeler, personal accident coverage for the rider, and any third-party liability caused by the insured two-wheeler. The insured two-wheeler is also fully covered against fire, explosion, theft, accident, self-ignition or lightning, natural disasters, terrorist activity, damage in transit by road, rail, inland waterway, lift, elevator or air.

Third-party insurance: This insurance is mandatory in India and covers the policyholder against liability for the damage caused by the insured two-wheeler to other people's vehicles or property. The damage can be third-party vehicle damage, injuries, death, or property damage. But, the third-party bike insurance doesn’t cover any damages for the insured two-wheeler or the rider.

What's Covered in a Two-wheeler Insurance Plan

Here’s what is covered in a two-wheeler insurance plan:
Loss or damage to your two-wheeler due to natural disasters
Your two-wheeler can get damaged or destroyed in case of a natural calamity like fire, explosion, self-ignition, lightning, earthquake, flood, or more. In such cases, a two-wheeler insurance policy helps cover your loss.

Loss or harm to your two-wheeler against man-made disasters
A bike insurance policy also helps keep your two-wheeler insured from not just burglary or theft, but also from riots, strikes, malicious acts, accidents by external forces, terrorism, and any harm caused while traveling by road, train, inland waterway, lift, elevator, or air.

Personal accident cover
A personal accident cover is an important aspect of two-wheeler insurance. It provides financial assistance to the insured in the event of a serious accident. Also, by paying an additional price, you can get optional personal accident insurance for co-passengers as well.

Third-party legal liability
Accidents resulting in an injury or death of a third party, or damage caused to the third-party’s property can have legal implications. This 2-wheeler insurance policy covers the legal liability of the third party for unintentional damages in case of an accident.

What’s not Covered in a Two-wheeler Insurance Plan

Regular wear and tear of two-wheeler
The two-wheeler insurance policy does not cover regular wear and tear of the two-wheeler and its consumables like tires and tubes unless the vehicle is damaged in an accident. In such a case, the policy covers up to 50% of the replacement cost.

Depreciation or any consequential loss
Depreciation or any consequential loss to two-wheelers is not covered under two-wheeler insurance policy.

Harm caused under intoxication
The harm caused by someone operating a two-wheeler while under the influence of drugs or alcohol is not covered in a two-wheeler Insurance Plan.

Breaking the traffic rules
The cover does not apply to vehicles that violate any traffic rules.

Mechanical/electrical breakdown
Two-wheeler insurance policies also does not cover any mechanical or electrical breakdown on two-wheelers.

Damage due to war
Loss or damage caused in case of nuclear risk, war, or mutiny is also not covered under this insurance.

How is two-wheeler insurance premium calculated

The premium for your two-wheeler insurance policy is calculated based on the following factors:

  • Insured Declared Value (IDV) of the vehicle
  • Engine Cubic Capacity (CC) of the vehicle
  • Zone of registration
  • Age of the vehicle

Third-party bike insurance premiums are set according to IRDAI guidelines, whereas standalone own-damage and comprehensive two-wheeler insurance premiums are set by insurance firms and vary depending on the characteristics of the policyholder's bike.

Available Add-ons with Bajaj Finance Two-wheeler Insurance Policy

Zero-depreciation cover
Zero-depreciation add-on protection is best suited for new vehicles. It lets you avoid depreciation cuts and the owner gets the full benefit of automotive repairs. In this cover, you receive full value for your two-wheeler and all its spare parts, as the depreciation of your car is not considered by your insurer.

Roadside assistance cover
One of the most terrifying scenarios for any rider is being stuck on the road with a two-wheeler that won't start. With the roadside assistance add-on, you'll have access to 24X7 emergency roadside assistance, including towing services in the event of a vehicle breakdown.

Key replacement cover
In case your bike key is stolen, you should immediately replace the lockset and key as there is a risk of vehicle theft. Key protect cover in bike insurance is an add-on that covers the cost involved in the repair or replacement of your two-wheeler keys.

Outstation emergency cover
Outstation emergency cover protects you from accidents or breakdowns that occur outside of a 100-kilometer radius of your home. In addition, if the repair time reaches 12 hours, the insurance company also reimburses you with Rs. 2,500.

Personal accident cover for passengers
Personal accident cover for passengers is an added layer of protection for your loved ones. It helps you to safeguard your loved ones in the event of an accident that results in permanent injury or death. In such cases, you will get coverage of up to Rs. 1 lakh per passenger as per the terms and conditions of the bike insurance policy.

Factors affecting two-wheeler insurance premium

The premium of two-wheeler insurance is determined by several criteria. The insurance company calculates the premium amount by weighing various risks. Here’s the list of factors that influence the cost of a bike insurance policy:

Make and model

The manufacture and model of the vehicle are the one of the essential elements that influence the bike insurance rate. If you own a low-cost bike, your insurance rate will be lower as well. However, if you own a high-priced sports bike, you will have to pay a greater premium.

Age of the vehicle

The age of a vehicle is also taken into account when calculating the policy premium. Therefore, when purchasing a bike insurance policy, insurers require you to enter the age of the bike in order to provide policy rates. A new bike has a higher value than an old bike, which means the former will have to pay a higher premium for insurance, while the latter would have to pay a lesser cost.

Insured Declared Value (IDV)

The IDV of a vehicle denotes its current market value. The IDV of a bike is computed every year as with time the value of the bike reduces due to depreciation. The insurance company evaluates the sum to be compensated based on the vehicle’s IDV, and accordingly the premium is also decided.

Engine capacity

One of the most common and important factors that influence the rates of bike insurance premiums is the engine capacity of the bike. The cubic capacity of the engine is used to calculate its size (cc).

No Claim Bonus

The No Claim Bonus (NCB) is a reward given by insurers to policyholders who do not file a claim during the policy year. The NCB is delivered in the form of a reduction in the following policy year's premium. With consecutive claim-free years and responsible driving, you can accumulate this advantage up to 50%. As a result, the insurance premium is influenced because you will have to pay it after the NCB discount is deducted.

How to save on bike insurance premium

There are various methods to save money on your two-wheeler insurance policy without sacrificing coverage. Take a look at the following:

Claim your NCB

For every claim-free year, you'll get an NCB. You can use your NCB to get premium discounts without lowering your coverage level and can also get assistance in bike insurance renewal.

Know the year your bike was built

It's critical to know the year your bike was built. Because older motorcycles have a smaller IDV, thus the premium rates are low.

Install safety gadgets

Safety devices that can improve the safety of your bike should be considered. This is because your insurance company will recognise your installation and give you a discount on your payment.

Choose your bike's CC wisely

Choosing your vehicle's engine cubic capacity, or CC, is critical because a greater CC draws a higher premium. As a result, you must carefully select the CC engine while purchasing.

Choose a higher voluntary deductible

Deductibles reduce the insurer's liability by requiring you to pay a portion of the claim amount out of your pocket. As a result, if you choose a high optional deductible, your insurer will reward you with lower premiums.

Benefits of Renewing Two-wheeler Insurance Online

Renewing your bike insurance is super easy and you also do not need to visit any branch. You can renew your two-wheeler insurance online from anywhere and anytime. Two-wheeler insurance renewal online has the following benefits:

No inspection: You can renew with no inspection. Provide there is no break in the insurance period.

No fresh documentation: You don’t need fresh documentation to renew your two-wheeler insurance online.

Quick and affordable: There are no extra charges and the renewal process takes a few minutes.

Compare best deals: Renewing your policy online means you can compare leading insurers and get their quotes. You can buy the one that suits you best.

Customer support: Get chat and phone support from the customer support teams in case of any doubts

Why Choose Two-wheeler Insurance from Bajaj Finance?

Reliable Brand Name
Bajaj Finance is a well-known financial institution ranking among the top Indian NBFCs year after year. We have received the highest safety ratings from both ICRA and CRISIL. These ratings can be used to evaluate the credibility of any entity and form the basis of trust for our millions of active customers.

Complete Online Process

Save time
Save time by not having to coordinate with the insurance company when you renew your two-wheeler insurance online.

Option to compare
Finding the best two-wheeler insurance is easy. When you renew your bike insurance online, you can easily compare various plans in terms of coverage and price.

Additional discounts
As opposed to the offline method, you can be eligible for extra discounts or rewards if you renew your bike insurance online.

Choose the best two-wheeler insurance
You should compare various two-wheeler insurance policies and purchase the one that provides the best coverage. This way, you will get the best plan at a reasonable price.

Easy Claim Process
Paperless door-to-door claims are available at Bajaj Finance. Now you can raise a claim procedure simply using a smartphone. On your registered mobile number, you will receive a link for Self-Inspection. Just follow the guided step-by-step method and photograph the damage to your vehicle from your smartphone.
Choose from our network of garages the type of repair you want, such as reimbursement or cashless.

Documents Required for Claim Process

Requesting for two-wheeler insurance claims is easy with Bajaj Finance. It is important, however, to have the correct set of documents on hand. Here are the documents required to file a bike accident insurance claim:
• Two-wheeler insurance policy paper or a copy of the cover note.
• Driving License of the person behind the wheels.
• RC or registration certificate of the insured vehicle.
• A valid claim intimation form.

How to Apply Two-wheeler Insurance Online

Just follow the below step to apply for bike insurance online

Step1: To apply for the product, click on ‘Apply Now’ and fill in the necessary details in the application form.
Step2: Make fee payment online.
Step 3: If required opt for a call back from our representatives or complete the process by clicking ‘Buy Now’

Frequently Asked Question (FAQs) for Two-wheeler Insurance

1. Is it compulsory to take 5 years of insurance?

The Motor Vehicles Act of 1988 requires a minimum 5-year tenure for third-party coverage. Please note that the minimum 5-year tenure is compulsory only for third-party insurance plans. If you choose a robust two-wheeler insurance package, the policy would last three years rather than five.

2. What happens if bike insurance expires?

The procedure for renewing two-wheeler insurance online is easy and takes no time. Navigate to your two-wheeler insurance provider’s web page. Fill in the necessary information and choose an appropriate schedule. After that, you should make a deposit. If a bike inspection is not needed, your insurance policy will be sent to your registered email address immediately.

3. How to Check Bike Insurance Policy Status?

IRDAI, or the Insurance Regulatory and Development Authority of India, launched the Insurance Information Bureau or IIB portal, which collects all data on the insurance industry. You can check the two-wheeler insurance policy status on their e-portal by following the steps mentioned below:

• Visit the official website of IIB.
• Tap on ‘V SEVA’ placed under the quick links and it will lead you to another page.
• Provide all the required information on this page along with the ‘Captcha’.
• Check all the information and click on ‘Submit’

4. How can I get a copy of my insurance online?

If you bought your two-wheeler insurance policy online, getting a duplicate copy of your policy would be much easier and quicker. Follow these steps to download your bike insurance online:

• Go to the website of your insurance company.
• Choose the type of policy you like.
• Enter your policy details, such as the policy number and expiration date.
• If prompted, double-check your profile.
• View, print, or download your two-wheeler insurance policy after it has been confirmed.

5. What is zero depreciation bike insurance?

Zero depreciation bike insurance offers broad coverage without taking depreciation into account. When you make a claim after your bike is involved in an accident and suffers damage as a result of the crash, the insurance company will bear the full cost of your losses ignoring the depreciation of your two-wheeler and its parts.

6. What is the advantage of zero-depreciation bike insurance?

Zero depreciation bike insurance has the following advantages:
• When you choose zero-depreciation bike insurance, you gain coverage and full peace of mind.
• There is no need to be concerned about the safety of your bike.
• If you have a zero-depreciation policy, the out-of-pocket costs are kept to a bare minimum.
• The value of a zero depreciation cover is added to the value of a standard cover.
• When settling lawsuits for insured parts of the two-wheeler, depreciation is not considered.

Please keep in mind that zero-depreciation is an optional bonus (add-on) that can be obtained by paying a higher premium. The premiums are determined by the type of vehicle, location, and age of the vehicle. In most cases, the zero-depreciation cover is not included in a regular two-wheeler insurance policy.

7. Is there any grace period for bike insurance?

A grace period is a buffer time provided by the insurers to allow you to renew your bike insurance before it expires. The grace period varies depending on the insurer and the nature of the policy. This period is defined in the policy's terms and conditions, and it generally ranges from 15 days to 90 days. This period prevents any lapse of policy benefits.

8. Can I claim bike insurance during the grace period?

No. A grace period is an additional duration offered by insurers to renew their two-wheeler insurance before their policy expires. During this period, one can compare policies and choose a better policy that suits them the best or renews the existing policy before its benefits lapse.