Factors to Consider When Buying Two–wheeler Insurance

Buying bike insurance is not very different from buying a new bike. Yes, just like you consider the model, brand, and variant when buying a new bike, you should opt for two-wheeler insurance plans that cater to your budget and requirements.

The Motor Vehicle Act mandates all bike owners to have motor insurance to be able to ride their two-wheelers on Indian roads. Remember, robust bike insurance can protect both your life and your two-wheeler in the face of a mishap.

Many bike insurance plans offer coverage for bike damage repair costs due to accidents and mishaps. Not just that, it also provides coverage for damage to third-party property and vehicles, thereby reducing your liability. Also, if you have a Bajaj bike, you can take a Bajaj bike insurance policy from ICICI Lombard to insure it against unforeseen events at low costs.

Now, you may need help in choosing a two-wheeler insurance policy that is best suited to your needs. Thus, we have compiled a list of factors to consider when buying a bike insurance policy.

  • What are the different types of two-wheeler policies?

Below is a round-up of the different types of two-wheeler insurance policies available in the market:

  • Third-party policy

Third-party insurance is mandatory for all vehicle owners in India. Third-party insurance offers coverage against damages to a third party’s assets if you are responsible for the mishap. Such policies do not provide coverage in cases of theft and damage to your own vehicle.

Third-party insurance covers death and permanent injury to a third-party person and damage to their property. Moreover, a third-party insurance plan is valid for just one year, which means you must renew it every year. However, you can take a multi-term Bajaj bike insurance policy from ICICI Lombard, which provides cover for 2-3 years.

  • Standalone policy

Among the coverage benefits of a standalone policy, you get protection from damage to your two-wheeler. This means you can claim compensation for damage to your bike because of natural calamities, manmade disasters, fire, theft, and accident.

Policyholders can buy a third-party policy and standalone policy from the same or different insurers. Moreover, you can always extend your coverage by buying add-ons.

  • Comprehensive policy

With comprehensive motor insurance plans, you can get the benefit of both comprehensive insurance plans and standalone policies. This way, you can obtain coverage for both damages to your vehicle and third-party liabilities.

Let’s take an example: If your Bajaj bike gets damaged because of a fire breakout, you can claim compensation as per your Bajaj bike insurance policy terms and conditions.

  • Add-ons

You can strengthen your comprehensive and standalone insurance plans by purchasing relevant add-on covers. Although add-ons come at additional premiums, they provide maximum value for your money.

  • Zero depreciation cover

Assets including two-wheelers depreciate over time. Usually, policyholders are left to bear the depreciation costs of two-wheelers. Nonetheless, if you opt for zero depreciation add-on cover, you can claim depreciation costs.

  • Miscellaneous

You can opt for key loss cover, tyre damage cover, loss of personal belongings, engine safe cover, and protection of NCB, among others.

  • Insured Declared Value (IDV)

IDV refers to the prevailing market value of your vehicle. The IDV is the maximum claim you can get in case of heavy losses. Its value diminishes as your bike gets older.

  • Insurance premium

The insurance premium amount depends on various factors. The key factor is cubic capacity, which can be classified as 0 to 150cc, 150 to 350CC, and 350CC+. Remember, the higher the cubic capacity of your bike, the greater will be the premium amount.

Another important factor that determines your premium amount is location. Note that locations are divided into Zone A, Zone B, and so. If your city comes under Zone A, you end up paying a higher premium for your Bajaj bike under the Bajaj bike insurance policy of ICICI Lombard than people residing in Zone B.

  • Claim Settlement Ratio (CSR)

To know the rate of efficiency of an insurance provider, study the CSR of the company. CSR is a measure of the claims entertained by the company against the total number of claims that were made in any given year. Go with insurers with the best CSR.

  • No Claim Bonuses (NCB)

Insurers reward policyholders who do not claim damages to their two-wheeler in any particular year by offering No Claim Bonuses. The NCB rises cumulatively as per the claim-free years. You can redeem the NCB benefits by enjoying discounts, which can go up to 50%, on your yearly premiums.

  • Digital Insurance Plans

Bike insurance plans come with the benefits of not only reduced policy costs but also minimal paperwork. Because there are no middlemen involved, the benefits translate to the policyholders by way of lower costs. Moreover, no paperwork is involved when you buy a Bajaj bike insurance policy from ICICI Lombard, which helps to further bring down the premium amount.


By following the above-listed tips, you can be sure of purchasing the bike insurance plan that best matches your requirements. Certainly, you should also think of your budget when purchasing a motor insurance policy.