Motorcycle Insurance: What You Need to Know

Sep 24, 2025 • 3 Min Read

Owning a motorcycle is an exhilarating experience but protecting it with the right insurance policy is just as important. Whether you ride for daily commutes or weekend adventures, motorcycle insurance ensures financial security in case of accidents, theft, or damage.

This guide breaks down what is motorcycle insurance, its coverage, costs, and what to look for when selecting the right policy.

What is Motorcycle Insurance?

Motorcycle insurance is a financial safety net that protects riders from unexpected expenses caused by accidents, theft, or damage to their bike. It provides legal compliance, financial security, and peace of mind, ensuring you can ride confidently without worrying about unforeseen events.

In India, two-wheeler insurance is legally mandatory under the Motor Vehicles Act, 1988, requiring at least third-party coverage for all motorcycles on the road.

What Does Motorcycle Insurance Cover?

The type of coverage depends on the policy you choose. Here’s a breakdown of what motorcycle insurance typically includes:

1. Third-Party Insurance (Mandatory by Law)

• Covers damages to third-party vehicles, property, or injuries.
• It does not cover the damage of your bike.
• Legally required in India for all motorcycle owners.

2. Comprehensive Insurance (Recommended for Full Protection)

Comprehensive insurance includes third-party cover along with protection for your bike against:

• Accidental damage (including collisions).
• Theft or fire-related losses.
• Natural calamities like floods, earthquakes, and storms.
• Man-made disasters, including vandalism and riots.

3. Personal Accident Cover

• Covers compensation for accidental injuries in case of permanent total disability/ partial disability or death of the rider.
• Can be extended to pillion riders (depending on the policy).

4. Add-Ons for Enhanced Coverage (Optional but useful for wider coverage)

• Zero Depreciation Cover: Full claim settlement without depreciation deductions.
• Roadside Assistance: Towing and emergency support in case of breakdowns.
• Engine Protection: Covers engine from water ingression or oil damage to the engine.
• Consumables Cover: Covers brake oil, nuts, bolts, and other consumables during repairs.

How Does Motorcycle Insurance Work?

Motorcycle insurance functions similarly to car insurance. You pay an annual premium, and in return, the insurer covers damages based on the policy terms.

Claim Process

1. Report the Incident: Notify your insurer immediately in case of an accident, theft, or damage. With Royal Sundaram Motorcycle Insurance, you can call 1800-568-9999 or notify a claim online or on WhatsApp at +917845704888.
2. Submit Required Documents: Provide an FIR (for theft cases), policy papers, driving licence, and repair estimates. With Royal Sundaram Motorcycle Insurance, a dedicated team will support you for an easy, hassle-free claim resolution.
3. Inspection and Approval: The insurer assesses the damage before approving the claim.
4. Repair and Settlement: The claim is settled according to the policy terms—either by direct cashless repair or reimbursement.

What Is the Cost of Motorcycle Insurance?

The cost of two-wheeler insurance depends on various factors, including engine capacity, coverage type, and additional riders. Third party coverage premium rates are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and Insurer’s decide on own damage cover. It can differ based on bike age, location, and other pricing factors of the insurer.

• Third-Party Insurance: Two-wheeler insurance starts at ₹538*. For a hassle-free experience and reliable coverage, consider Royal Sundaram Bike Insurance for complete protection against third-party liabilities*.
• Comprehensive Insurance: The cost varies based on the bike’s insured declared value (IDV), chosen coverage, and add-ons such as zero depreciation or roadside assistance. Riders looking for full coverage should compare different plans to find the best fit.

Factors That Affect Motorcycle Insurance Premiums

1. Bike’s Engine Capacity (CC) – Higher CC bikes attract higher premiums.
2. Age of the Bike – Older bikes generally have lower premiums, but repairs may cost more.
3. Location of Registration – Cities with high traffic and theft rates have higher premiums.
4. Rider’s Age & Experience – Younger and new riders may pay more due to higher risk.
5. No Claim Bonus (NCB) – Discounts offered for not making claims in previous years.
6. Add-Ons & Custom Features – More add-ons increase premium costs a little but provide better protection.

What to Look for in Motorcycle Insurance?

• Coverage Type: Choose between third-party only or comprehensive insurance based on your needs. Royal Sundaram’s Claims Settlement Ratio is one of the highest in the industry.
• Insurer’s Claim Settlement Ratio (CSR): A higher CSR means a smoother claim process.
• Network Garages: More cashless garages = hassle-free repairs.
• Premium vs. Benefits: Opt for the best balance between affordability and coverage.
• Add-On Benefits: Select useful add-ons like roadside assistance or zero depreciation.

For complete peace of mind, consider Royal Sundaram Motorcycle Insurance to ensure you are covered for your two-wheeler insurance needs.

Common Myths About Motorcycle Insurance Debunked

Myth 1: Third-party insurance is enough for all riders
Reality: It covers damages to others but does not protect you.

Myth 2: Comprehensive insurance is too expensive
Reality: With NCB discounts and selective add-ons, it can be affordable and cost-effective.

Myth 3: Older bikes do not need insurance
Reality: Insurance is legally required, and even older bikes need coverage for theft and damage.

Myth 4: A claim-free year does not offer any benefit
Reality: NCB rewards reduce renewal premiums by up to 50% over time.

Ride Smart, Stay Protected

Motorcycle insurance is not just a legal formality—it is a safeguard against unexpected financial burdens. Choosing the right policy ensures you are protected on the road, whether against accidents, theft, or natural disasters. Before buying, compare plans, choose a reliable insurer, and ensure you have the best coverage for your riding needs.

Ready to protect your ride? Get Royal Sundaram Two-Wheeler Insurance for complete coverage, easy claims, and peace of mind on every journey!

* The premium of Rs.538/year applies only to the base Third-Party insurance cover for two-wheelers below 75cc, without including Personal Accident cover.