In India, it is mandatory to insure any engine-driven vehicle, be it a four-wheeler or a two-wheeler. Now it will become mandatory to get insurance for most electric vehicles, as well. If a vehicle is caught without insurance, it can result in a fine of INR 2000 or 3 months of jail. In case of serious negligence, both punishments can be given together.
Apart from this, by having bike insurance, you are saved from getting trapped in many types of financial and mental problems. If your bike is destroyed in an accident or stolen, you get compensation for the damage to your vehicle. If your bike causes damage to any other person, vehicle, or property, the insurance company also provides compensation for the same.
Many of my readers had asked how much it costs to insure a bike. Similarly, some people have also asked about the scooter or bike insurance prices in India right now. In this article, I will inform you about the bike insurance price. I will also discuss how the bike insurance price (premium) is determined.
What Is The Bike Insurance Price Or Premium In India?
The price that a customer has to pay for any insurance plan is called an Insurance Premium in the language of insurance. In colloquial language, you can also call a bike insurance premium an insurance installment.
This is the amount that you have to deposit at regular intervals to avail the benefits of the insurance policy. In the case of auto insurance, generally, it is decided annually. We have explained the information below that affects the determination of insurance prices in the next paragraph.
How Is Bike Insurance Price Decided?
The increase or decrease in bike insurance premiums depends on the following factors-
Insurance Policy Type
What kind of insurance policy is yours – are you getting only third-party insurance or are you taking comprehensive insurance? The difference in the features of both types of insurance is as follows –
Comprehensive Insurance Policy:
In this, you get the facility of third-party insurance as well as your damage insurance. Under your damage insurance, the insurance company provides compensation to your vehicle even if it is damaged, stolen, or destroyed. For the safety of your vehicle, it is better to take.
Third-Party Insurance Policy:
This is called third-party liability. In this, in case your bike causes damage to any other person, vehicle, or property, the insurance company takes the responsibility of giving compensation, court cases, etc. However, there is no help if there is damage to you or your vehicle. It is also legally mandatory.
If you only get third-party insurance, then its premium remains low, whereas, if you take comprehensive insurance, the premium becomes higher.
Add On Covers You Choose:
The more add-ons you add to your bike insurance, the higher your insurance premium will be. For example, personal accidental cover, Zero depreciation cover, Cashless Hospitalization cover, etc. can be included as add-ons with the main insurance policy.
Bike’s Engine Capacity:
The higher the engine capacity of your bike, the higher will be its insurance premium. The lower the engine capacity, the lower will be the insurance premium.
Bike’s IDV (Insured Declared Value)
IDV or Insured Declared Value is the immediate market value of the vehicle. This is the amount that the insurance company pays you if your vehicle is stolen or destroyed. The higher the Insured Declared Value of your bike, the higher will be its premium. Whose IDV is lower, his insurance premium will also be lower.
The Voluntary Deductible You Select
Voluntary deductible is the part of the insurance claim that you agree to on your behalf. In case of damage to the vehicle, you have to pay the voluntary deductible towards the cost of repairing it. The insurance company pays the remaining portion after the deductible. The more voluntary deductibles you choose, the more discount you get on the insurance premium.
Location Of Your Insurance Purchase
If you live in a Metro City, like Mumbai, Delhi, Bangalore, etc., then your bike insurance premium will be higher. Because, in such cities, the traffic is more dense and there are more chances of the bike getting damaged. On the contrary, if you are registering the bike in a small city then the insurance premium will be less.
Special Model or Special Use Of The Bike
Some companies manufacture motorcycles for specific categories of customers. Similarly, some bikes are made for specific purposes, such as sports bikes. Their prices are very high. Since their Insured Declared Value is also very high, their insurance premium is also very high.
Use of ARAI-Approved Anti-Theft Devices
If your bike is fitted with anti-theft devices approved by ARAI (Automotive Research Association of India), then you will get a discount on the insurance premium. Such as Anti-theft alarms, safety Gear locks, GPS Devices, etc. This discount can be up to 2.5%.
Bike’s Year of Manufacture
Its premium also depends on how old your bike is. As the bike gets older its IDV reduces. For example, the IDV of a 6-month-old bike is 95% of its ex-showroom price. Whereas, the IDV of a 4 to 5-year-old bike remains only 50% of its ex-showroom price.
No Claim Bonus
After insuring the bike, you get a No Claim Bonus for the number of years you do not make any claims. Thanks to this, the insurance company reduces your insurance premium in future years. With No Claim Bonus in the first year, you get up to 20% discount on premium. In the sixth year, this discount reaches 50%.
The Driver’s Age and Driving Record
Insurance companies keep the insurance premium slightly higher for people who are younger and do not have enough driving experience. Similarly, if your driving record is not good then the premium will also be slightly higher. The premium is slightly higher for male bikers aged between 20 to 25 years and with less than 1 year of driving experience.
Bike Insurance Prices in India
Third-party bike insurance is mandatory for your two-wheeler in India. Its price is determined by the government agency IRDAI. The price of third-party bike insurance varies depending on the vehicle model and engine capacity. Here I am giving the price list of third-party bike insurance.
The cost or premium of third–party bike insurance in India is determined by considering the capacity of the engine and it’s determined by the IRDA solely based on the vehicle’s condition and engine capacity. However, the cost or premium keeps changing every year by around 10-20%. Nevertheless, a big reassurance for bike owners in India is that the costs won’t rise this year (Source: the latest information released by IRDA)
- Bikes/two-wheelers with a capacity of less than 75 CC- INR 482
- 75 CC to 150 CC capacity bike/two wheeler insurance rate- INR 752
- Bikes/two-wheelers of 150 CC to 350 CC capacity- INR 1193
- Bikes/two-wheelers with a capacity of more than 350 CC- INR 2323
If you get Comprehensive Insurance then you get both types of insurance protections, Third Party insurance and Own Damage Cover. While in Third Party Insurance, you get compensation for damage caused by your vehicle to someone else’s vehicle, property, or body, whereas in Own Damage Cover, you get compensation in case of damage to your vehicle.
On getting Comprehensive Insurance, along with the cost of third-party insurance, you will also have to pay the cost of your Damage Cover. By adding the prices of both, your total premium will be formed. GST of 18% of the total premium will also have to be paid separately.
So, the cost of your bike insurance in India depends on various factors. To get a vivid idea of your bike insurance policy, it is better to contact insurance companies or agents in your local area.