Bike Insurance Purchase/Renewal Charges

Buying a two-wheeler is a thrilling experience. With a plethora of alternatives, it sure is a roller-coaster journey in picking a suitable vehicle. But that is not all. There are a few more formalities to remember when buying a new two-wheeler which includes the registration, and a bike insurance policy. While registration is mandatory, there is never a case of non-compliance but when it comes to bike insurance, individuals prefer to opt for the coverage offered by their vehicle dealer. However, that isn’t the only bike insurance plan that you can purchase. When it comes to selecting the right insurance cover, there isn’t just one factor to consider. Many factors together determine the premium for your insurance coverage. Two-wheeler insurance charges further depend on the type of insurance policy, i.e. third-party and comprehensive insurance cover.

Third-party plans

A two wheeler insurance third party policy is the one which protects you from liabilities that might arise due to injuries to third person and damages to third-party property. A third-party policy is the minimum requirement as per the Motor Vehicles Act, 1988 but has limited coverage. The two-wheeler insurance charges are affordable for these policies due to its mandatory nature. Moreover, the rates for these third-party policies are monitored by the regulator, Insurance Regulatory and Development Authority of India (IRDAI). Some third-party insurance plans are included with a personal accident coverage. While it is compulsory to buy a personal accident cover, it is an unbundled coverage that can be bought as per your need. The table below mentions the third-party two-wheeler insurance charges. These premiums are decided based on the bike’s cubic capacity -

Cubic capacity of the Two-Wheeler	Two-wheeler Third-party Insurance Premiums
Engine capacity up to 75 cc	₹ 482
Engine capacity exceeding 75 cc up to 150 cc	₹ 752
Engine capacity exceeding 150 cc up to 350 cc	₹1193
Engine capacity above 350 cc	₹2323

Comprehensive plans

While a third-party policy offers limited coverage, a comprehensive plan makes up for the limited coverage a third-party policy offers. A comprehensive plan includes protection from not only third-party liabilities, but also own damage to your vehicle. Moreover, coverage from natural calamities as well as man-made perils is also included in a comprehensive policy cover over and above third-party liabilities. The bike insurance renewal charges as well as the premium rate for comprehensive policies depend on the Insured Declared Value or IDV. It is the maximum amount that the insurance company offers in the event of total loss or complete damage. This value is determined based on the age of the bike, registration date, state of registration, type of fuel, and model and make of the two-wheeler.

Bike insurance charges under Goods and Service Tax

Apart from the type of the policy, there are other factors that impact bike insurance charges and its purchase - the applicable taxes. At present, the Goods and Service Tax (GST) rate of 18% is applicable for all insurance plans. These taxes are levied over and above the premium amount. Thus, make sure to check whether these charges are included in the premium amount mentioned on the policy document. To conclude, these are some of the charges that are levied by the insurance company. When going through the list of two-wheeler insurance charges, make sure to thoroughly read the policy document to have complete information about them. The quotes for your desired coverage can be determined using the bike insurance calculator. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.