Insurance Product

Two Wheeler Insurance Decoded: All that you need to know

Two-wheelers offer convenience & accessibility, making it a preferred choice of transport for millions of commuters. Indian roads bustle with over 200 million registered two-wheelers. However, reports suggest that nearly 60% of two-wheelers on Indian roads are uninsured, exposing both riders and pedestrians to financial risks in the event of accidents or mishaps.

Two-wheeler insurance provides a safety net against such risks. It offers coverage for a range of eventualities, including accidents, theft, natural calamities, and third-party liabilities.

When considering two-wheeler insurance, it’s crucial to understand the types of coverage available.

  • Third-Party Insurance
    • It provides coverage for damages caused to third-party property or injuries/death of third parties due to accidents involving your two-wheeler.
    • Third-party insurance is the most basic and mandatory type of insurance required by law.
    • It does not cover damages to your own vehicle.
  • Comprehensive Insurance
    • Comprehensive insurance offers a wider scope of coverage compared to third-party insurance.
    • It covers both third-party liabilities & damages to your own vehicle.
    • It provides coverage for theft, natural calamities, fire, accidents, etc.

Now that we have explored the available types of 2 Wheeler Insurance, let’s delve deeper into the coverage provided by a comprehensive 2 Wheeler Policy–

Comprehensive Two-wheeler insurance policies typically cover a range of risks and provide financial protection in various scenarios, including:

  • Accidents: This coverage includes damage to the insured vehicle and injuries to both the rider and passenger in case of an accident. For example, if your two-wheeler collides with another vehicle and sustains damages, comprehensive insurance would cover the repair costs. Similarly, medical expenses would be covered under the policy if you or your passenger are injured in the accident.
  • Theft: Compensation is provided if the insured two-wheeler is stolen. For instance, if your motorcycle is stolen from a parking lot, the insurance company will reimburse you for the value of the stolen vehicle.
  • Natural Calamities: Protection against damages caused by natural disasters such as floods, earthquakes, cyclones, etc. For example, if your two-wheeler is damaged due to a flood during heavy rainfall, comprehensive insurance would cover the repair or replacement costs.
  • Third-Party Liability: Coverage for damages to third-party property or injuries caused by the insured two-wheeler. For instance, if you accidentally collide with another vehicle and cause damage to it or injure its occupants, comprehensive insurance would cover the expenses for repairs or medical treatment.

Available Add-on Covers

Several add-ons are available for two-wheeler insurance policies, which offer additional coverage beyond the standard policy at an extra cost.

  • Zero Depreciation Cover: This add-on ensures that you receive the full claim amount without any deduction for depreciation on the value of parts replaced during repairs after an accident. For example, if your bike’s bumper needs replacement, the insurer will cover the entire cost without factoring in depreciation.
  • Personal Accident Cover: This add-on provides financial assistance in case of accidental death or disability of the policyholder. For instance, if the insured sustains permanent disability due to a covered accident, the insurer will provide a lump sum payment as per the policy terms.
  • Roadside Assistance: This add-on offers assistance in case of breakdowns or emergencies while on the road. It may include services such as towing, fuel delivery, battery jump-start, and flat tyre assistance. For example, if your bike breaks down due to a mechanical issue, the insurer will arrange for a tow truck to transport your vehicle to the nearest garage.
  • Engine Protection: This add-on covers damages to the insured two-wheeler’s engine due to water ingression or oil leakage. For instance, if your bike’s engine is damaged due to flooding, the insurer will cover the repair costs.
  • Accessories Cover: This add-on extends coverage to accessories fitted in the two-wheeler, such as GPS devices, music systems, and alloy wheels. For example, if your bike’s custom alloy wheels are stolen, the insurer will reimburse the cost of replacing them.
  • Consumables Cover: This add-on covers the cost of consumable items such as engine oil, lubricants, nuts, and bolts used during repairs after an accident. For instance, the insurer will cover the expenses if your bike requires engine oil replacement as part of the repair process.


Two Wheeler Insurance Policy typically excludes –

  • General wear & tear: Comprehensive insurance typically does not cover damages resulting from general wear and tear of the vehicle. For example, if your two-wheeler’s tyres wear out over time due to regular usage, the insurance policy would not cover the cost of replacing them.
  • Mechanical or Electrical Breakdowns: Expenses related to mechanical or electrical breakdowns are usually excluded from comprehensive insurance. For instance, if your two-wheeler’s engine fails due to a mechanical issue, the insurance policy would not cover the cost of repairing the engine.
  • Accidents while under the Influence of alcohol: Comprehensive insurance does not cover accidents or damages that occur while riding under the influence of alcohol or drugs. For instance, if you are involved in an accident while intoxicated, the insurance company may refuse to cover the damages.
  • Illegal Activities or Traffic Violations: Engaging in illegal activities or violating traffic rules could also lead to non-coverage of damages or losses. For instance, if you use your two-wheeler for illegal street racing and get into an accident, the insurance company may deny coverage for the damages.

Understanding these exclusions is crucial to ensure you are adequately protected and avoid any unpleasant surprises during claims processing. By investing in a comprehensive Two-Wheeler Policy, you can protect yourself against unforeseen events, ensuring that you ride with peace of mind and without the burden of financial worries.

Things to Keep in Mind

  • Third-Party Liability: If you have bought a brand-new bike or scooter, you are required to opt for  5-year third-party liability cover.
  • Legal Compliance: Under the Motor Vehicles Act of 1988, every motor vehicle, including two-wheelers, must be insured in India. Riding an uninsured two-wheeler is illegal and unsafe for everyone on the road.
  • Financial Protection: Two-wheeler insurance provides financial coverage against a range of risks, including accidents, theft, natural calamities, and third-party liabilities. In the unfortunate event of an accident, having insurance can alleviate the financial burden of repairing or replacing the vehicle and covering medical expenses.
  • Customizable Coverage: Two-wheeler insurance policies have various coverage options tailored to individual needs. From basic third-party liability coverage to comprehensive plans that include own damage protection, personal accident cover, and add-on benefits like roadside assistance, riders can choose a policy that aligns with their requirements and budget.
  • Reputed Provider: When selecting the right insurer for your two-wheeler insurance, consider a trusted and reputable provider. Check the coverage options, claims process efficiency, customer service quality, and premium. Priortise reliability, tailored coverage, easy claims, responsive service, and balanced costs to ensure optimal protection without compromising quality.


Two-wheeler insurance is not just a legal requirement but a crucial investment in safeguarding both life and property on the road. Remember, there’s no better time than now to secure our rides and embrace a safety-conscious mindset, ensuring a more secure tomorrow for everyone on the road.

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