How Much Does Motor Insurance Cost?"
Every one of us is aware of traffic in India, and among all the cities, the top 3 with the highest
traffic are Bengaluru, Mumbai, and Delhi. Traffic does not only increase pollution but also
increases the chance of accidents. According to the research, it was found that 37% of
road accidents were caused by two-wheelers. Every year, thousands of people die because of
the harshness of riding two-wheelers.
By Noticing all these accidents at their peak, the Government of India has made it necessary
to buy two-wheeler insurance. And as per the Motor Vehicle Act of 1988, all two-wheelers
must have at least third-party liability insurance.
Let us move further into detail and discuss the types of Insurance that are available in India,
how much they cost, and what factors affect their cost.
What is Motorcycle Insurance?
In simple terms, Motor Insurance is a policy that helps individuals recover against damages
that may happen to them and their bikes. Events such as accidents, theft, and natural
disasters can happen anytime and anywhere. If you do not buy an insurance policy, then it is
a loss on your end.
In the next part, we will jump on to the Types of Insurance policies available in India.
Types of Insurance Policies in India
As discussed, it is essential to buy the insurance policy as per the India Act, and you will be
able to claim for your two-wheeler in case of any damages. It is a kind of financial protection
that you get. There are different insurance policies that are offered by the companies
according to one's needs. If you are searching for motor insurance, you must compare the
policies from various insurance organizations to know what is included and what is excluded.
And after researching thoroughly then decide from where to buy motor insurance policy.
There are three different types of insurance policies in India, and they are:
• Third-party Bike Insurance
• Comprehensive Bike Insurance
• Own- Damage Bike insurance
Third-Party Bike Insurance:
As per the law, this is the basic requirement that an individual should have. With the increasing
traffic, there are most likely chances that your bike may be hit by a third party or bump into
another car, causing unwanted situations. Suppose, unfortunately, in a hurry you bump into a
Mercedes-Benz E Class, and this is the situation when your third-party insurance will help you
as you will no longer be liable for paying the cash to recover their damage.
• Protection of third-party
• Asset Damage Coverage
• In cases of permanent or temporary disability
• There is no coverage for one’s own personal damage.
Comprehensive Bike Insurance:
This insurance policy includes third-party as well as personal damage. It is the most popular
policy that everyone must hold, as it provides a claim against one’s own damage as well.
• Damage or loss because of Natural Disasters like floods, earthquakes, hurricanes, and
• Accidents or injuries by Third-parties
• In case of theft, riot, or strike
• One’s own accident coverage up to Rs 15 Lakh
• In case of mechanical breakdown
• If driving a bike under the influence of Alcohol
• If the driver is not carrying the driving license or any other essential documents
These are all the things that are included and excluded in a comprehensive bike insurance
Own Damage Bike insurance:
As the name suggests, own Bike insurance means that the owner can cover the liability against
damage to their bike in case of theft, natural calamities, man-made calamities, and fire. It
provides you protection against damage in any situation. Perhaps purchasing it is a wise
Bike Insurance Price:
The cost of purchasing a bike differs according to the policies. Indian roads are very risky to
drive on. With the increasing number of sales of Two-wheelers, it is mandatory to buy an
insurance policy. The cost of a bike insurance policy ranges from Rs 2000 to Rs 20,000,
depending on the model and other factors that are relevant for your bike.
Let’s dive into and discuss about what factors effect the cost of Bike insurance:
1. Kind of Two-wheeler:
The insurance price depends on the type of two-wheeler you possess. If you own a Low-priced
bike, your insurance will cost less. And if you own a sport bike or a BMW-brand bike, then its
insurance price is higher.
As we all know, as per Indian rule, youth under the age of 18 are not allowed to drive on a
road. But after 18 years of age, the insurance price also matters. The young drivers need to
pay higher premiums as they do not have much experience and perhaps pose greater risks.
3. Value of the Bike:
The value of every owned asset decreases with time. The current market value of a bike is
termed the insured Declared Value. It is calculated once a year as the value of the motorcycle
goes down. Basically, the cost of a motorcycle insurance policy is 2–3% of the motorcycle’s
4. Capacity of the Engine:
This is one of the most important factors to consider, as the cost of insurance is highly
dependent on the Cubic Capacity (cc). If your engine capacity is 75 cc or less than this, you
need to pay a lower insurance premium, whereas if your bike has 350 cc, you need to pay a
higher amount for insurance.
5. Avoid theft devices:
With the increasing unemployment, the cases of theft are also increasing, and if your bike
gets stolen due to your negligence, you will not be able to claim from the insurer. If your bike
has some kind of safety equipment, your bike insurance rate will be lower. There are
insurance companies that provide discounts on installing safety gadgets that have been
certified by ARAI. But due to modern technologies, the chances of theft are decreasing, thus
unlocking the liability of the Insurance companies.
Most of us are not aware of the kind of discount that we can get on insurance policies. That
one discount is a no-claim Bonus or Discount. It is given when an insured does not claim
against a motorcycle insurance policy in the preceding year’s policy period. Under this, one
can get up to a 50% discount.
One more wise way to decrease the insurance premium price is to become a member of auto
associations such as the Automobile Research Association of India (AARI) or the Western India
Wrapping it up:
These were all the factors that affected the cost of Motorcycle Insurance in India. To be on the
safe side, we recommend that you do not buy insurance policies from a showroom but rather
buy them online from various popular and trustworthy sites like
https://www.apnamechanic.com/ where you can also compare bike insurance quotes.
Accident cases are really of concern these days, and therefore one should remain safe by
purchasing an insurance policy.
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