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Bike insurance renewal in India: TP rates, the 5-year rule and what to compare

How two-wheeler insurance renewal works in India: 5-year TP for new bikes, standalone OD renewals, TP rates by cc, IDV for scooters and motorcycles, add-ons and a worked comparison.

Updated · 4 min read

Bike insurance renewal in India: TP rates, the 5-year rule and what to compare

Renewing two-wheeler insurance follows the same structure as car insurance, with a few differences that matter at renewal. A new scooter or motorcycle must carry five years of third-party cover from registration, so for its first five years you renew only the own-damage part as a standalone OD policy, if you want it. After that, you renew a comprehensive or liability-only policy each year. Third-party premiums are banded by engine size, from ₹538 (up to 75 cc) to ₹2,804 (above 350 cc) a year before GST under the rates in force since June 2022. Because two-wheeler OD premiums are small in rupees, the main decisions are whether OD cover is worth it at all on an older bike, and whether the IDV reflects the bike's real value.

This guide is part of the car insurance renewal checklist; most of the checks apply equally to bikes.

The two-wheeler premium, line by line

LineTypical position
TP premiumFixed by cc band: ₹538, ₹714, ₹1,366 or ₹2,804 a year
OD premiumBased on IDV, age, cc and zone; set by the insurer
NCBSame slabs as cars: 20%, 25%, 35%, 45%, 50%
Compulsory deductibleCommonly ₹100 under standard wordings
CPA for owner-driver₹15 lakh, unless exempt
Pillion PAOptional unnamed passenger cover
Add-onsZero dep, engine protect, RSA, return to invoice, consumables
GST18%

TP property damage cover for two-wheelers is commonly ₹1 lakh, and some insurers let you restrict it to ₹6,000 (the old statutory minimum from before the 2019 amendment) for a small saving. Restricting it rarely makes sense: damaging a parked car could easily exceed ₹6,000, and you would pay the rest.

The first five years: standalone OD

A bike registered in, say, March 2023 carries TP until March 2028. Every March until then, you choose whether to renew own-damage cover:

  • Renew standalone OD if the bike is valuable, financed, parked on the street, or ridden daily in heavy traffic.
  • Let OD lapse only if you could replace the bike yourself; you remain legal because TP is valid, but theft and accident damage are your loss.

If you let OD lapse for more than 90 days, the NCB on OD is lost.

Worked example: is OD cover worth it on a 7-year-old commuter bike?

Illustrative. A 125 cc commuter motorcycle, 7 years old, agreed IDV ₹28,000, NCB 50%.

PolicyTPOD after NCBCPANetWith GST
Liability-only₹714–₹330₹1,044₹1,232
Comprehensive₹714₹420₹330₹1,464₹1,728

Comprehensive costs ₹496 more a year for cover up to ₹28,000 for theft, fire, flood and accident damage. Bikes are stolen more often than cars, and a ₹496 premium is about 1.8% of the IDV. If the bike is parked on a street or at a railway station every day, keeping OD cover is often reasonable; if it lives in a locked garage and is ridden occasionally, liability-only may be enough.

IDV for bikes

The same age slabs apply as for cars (5% up to 6 months, 15% up to 1 year, 20%, 30%, 40%, 50% up to 5 years). After five years, IDV is agreed. Check:

  • The IDV is close to what the bike would sell for. Very low IDVs on older bikes make theft claims nearly worthless.
  • Aftermarket accessories (crash guards, top boxes) are declared if you want them covered.
  • For electric scooters, the battery is part of the IDV; see electric vehicle insurance.

Add-ons worth considering on a two-wheeler

  • Zero depreciation for the first few years: plastic body panels on scooters are depreciated 50% without it, and a minor fall can mean several panels.
  • Engine protection in flood-prone areas.
  • Roadside assistance for touring motorcycles.
  • Return to invoice for an expensive new motorcycle with high theft risk.

Comparing bike quotes

  1. Fix the same IDV, NCB and add-ons on each quote.
  2. Check the TP line is identical for the same cc band.
  3. Compare totals including GST, then use the quote comparison tool with a typical claim, such as ₹8,000 for a scooter fall (body panels plus mirror and indicator).
  4. Check the garage network includes service centres for your brand nearby.

Two-wheeler specific mistakes

  • Riding without a valid licence, or a learner riding alone: OD claims can be refused and the insurer may recover TP payouts from you.
  • Carrying more than one pillion, or using a private scooter for paid deliveries without declaring commercial use. Delivery work on a private policy is a common cause of claim disputes; ask the insurer for the right policy.
  • Not wearing a helmet: helmets are compulsory under the Motor Vehicles Act; while not a standard OD exclusion, it can affect personal injury compensation and PA claims.
  • Renewing only TP at the 5-year mark without realising OD has also ended.

Frequently asked questions

Is the 5-year TP refundable if I sell the bike?

The TP cover transfers with the bike to the buyer. If the bike is scrapped or stolen, ask the insurer about cancellation of the remaining TP term; refunds depend on the policy terms.

Do bikes have NCB?

Yes, with the same slabs as cars. It moves only between two-wheelers.

Can I insure a bike registered in another state?

Yes. The policy follows the registration; inform the insurer if the address has changed.

Is pillion cover compulsory?

No. CPA for the owner-rider is compulsory unless exempt; pillion PA is optional.

Sources

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