What Is Bike Insurance?
Bike insurance (two-wheeler insurance) is a policy that covers third-party liability, and optionally your own vehicle, against accident, theft, fire, and natural calamities. Third-party cover is a legal requirement for every registered two-wheeler in India.
Under Section 146 of the Motor Vehicles Act, 1988, riding without at least a valid third-party policy is an offence. A comprehensive policy adds own-damage cover on top of that legal minimum, protecting your own bike as well as third parties.
The Insurance Regulatory and Development Authority of India (IRDAI) fixes the third-party premium by engine cc, uniform across every insurer, while the own-damage premium and add-ons vary by insurer.
Bike Insurance Premium Formula
Total Premium = (Third-Party + Own-Damage x (1 - NCB%)) x 1.18IDV = Ex-showroom price x (1 - depreciation%). Own-damage premium = IDV x own-damage rate (typically 2-3%). NCB reduces only the own-damage portion. GST at 18% applies to the full total, after the NCB discount.
Worked example: A 75-150cc scooter with a Rs 85,000 ex-showroom price, 1 year old (15% depreciation), gives an IDV of Rs 72,250. At a 2.5% own-damage rate, that is Rs 1,806 own-damage premium. With 1 claim-free year (20% NCB), own-damage drops to Rs 1,445. Add the Rs 714 third-party premium for a Rs 2,159 subtotal, plus 18% GST (Rs 389), for a total premium of Rs 2,548.
Third-Party Bike Insurance Rates by Engine CC
These are the last officially confirmed IRDAI third-party rates, effective since April 1, 2022. A revision has reportedly been under review since 2025 but had not been notified at the time of writing, so confirm the current rate with any insurer before buying.
| Engine Capacity | 1-Year Premium |
|---|---|
| Up to 75cc | Rs 538 |
| 75cc - 150cc | Rs 714 |
| 150cc - 350cc | Rs 1,366 |
| Above 350cc | Rs 2,804 |
IDV and Age-Based Depreciation
IDV only affects your own-damage premium, not third-party, since third-party is a flat cc-based rate. IRDAI fixes the depreciation schedule so every insurer arrives at the same IDV for the same ex-showroom price and age.
| Vehicle Age | Depreciation |
|---|---|
| Not exceeding 6 months | 5% |
| 6 months to 1 year | 15% |
| 1 to 2 years | 20% |
| 2 to 3 years | 30% |
| 3 to 4 years | 40% |
| 4 to 5 years | 50% |
| Beyond 5 years | Mutually agreed |
No Claim Bonus Slabs
NCB rewards claim-free years with a growing discount on own-damage premium only. It belongs to you, not the vehicle, so selling your bike and buying a new one carries your NCB forward if you insure the new bike within the required window.
| Claim-Free Years | NCB Discount |
|---|---|
| 1 year | 20% |
| 2 years | 25% |
| 3 years | 35% |
| 4 years | 45% |
| 5+ years | 50% |
Third-Party vs Comprehensive: What's the Difference?
| Feature | Third-Party | Comprehensive |
|---|---|---|
| Legal requirement | Meets the minimum | Meets the minimum |
| Covers third-party injury/damage | Yes | Yes |
| Covers your own bike | No | Yes, against accident, theft, fire |
| Premium | Fixed by IRDAI (cc-based) | Third-party + own-damage (insurer-set) |
| NCB applies | No | Yes, on own-damage portion |
GST on Bike Insurance
GST on motor insurance, including two-wheeler policies, is 18%, applied to the total premium after any NCB discount. This is unchanged even after the 2025-26 GST reform that reduced GST on individual life and health insurance premiums, since motor insurance was not part of that specific relief.
Bike Loan EMI Calculator
Financing a new bike? Work out the EMI alongside your insurance premium.
Bike Insurance Add-ons
| Add-on | What It Covers |
|---|---|
| Zero Depreciation | Removes wear-and-tear deduction on plastic and rubber parts during a claim |
| Engine Protection | Water ingress and oil leakage damage not covered by a standard policy |
| Roadside Assistance | Towing, fuel delivery, and minor on-spot repair |
| NCB Protection | Preserves your accumulated NCB even after one claim in a policy year |
Where to Buy Bike Insurance
Two-wheeler insurance in India is underwritten by IRDAI-regulated general insurers, including ICICI Lombard, HDFC Ergo, Bajaj Allianz, Tata AIG, Reliance General, Digit, Acko, National Insurance, United India Insurance, New India Assurance, and SBI General. Aggregators such as Policybazaar compare quotes across these insurers rather than underwriting policies themselves.
Limitations of This Calculator
Third-party rates may have changed. The rates shown are the last officially confirmed IRDAI figures from April 2022. A revision has been discussed since 2025 but was not confirmed at the time of writing.
Own-damage rate is an assumption, not a quote. Each insurer prices own-damage independently based on your city, the specific bike model, and your profile, so the real premium from any one insurer can differ from this estimate.
Add-ons are not included. Zero depreciation, engine protection, and roadside assistance each add to the premium shown here.
How to Use This Bike Insurance Calculator
- Enter your bike's ex-showroom price: this is the base value your IDV is calculated from.
- Select engine cc and vehicle age: cc sets your fixed third-party premium; age sets IDV depreciation.
- Select claim-free years and policy type: claim-free years set your NCB discount; choose third-party only or comprehensive.
- Read the estimated premium: the breakdown shows third-party, own-damage after NCB, GST, and the total.
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Frequently Asked Questions
Disclaimer: All calculations on this page are indicative only. Third-party premium reflects the last officially confirmed IRDAI rate (effective April 2022); a revision has reportedly been under review since 2025 but was not confirmed at the time of writing. Own-damage premium rate, add-ons, and any insurer-specific discounts are not standardised and vary between insurers. This calculator is for educational and planning purposes only and does not constitute insurance advice or a quote. Confirm the exact premium with a licensed insurer before purchasing a policy.