Motorcycle Insurance Explained: Types of Policies, Add-Ons and Claims

Last updated: September 2026

Your renewal notice lands in your inbox. Or the dealer slides a folder across the desk with a number at the bottom and says it is "all included". Either way, you are now expected to choose between third party, comprehensive, zero dep, RTI, engine protect and a few other terms that sound like they were invented to confuse you.

They were not, really. Each one does a specific job, and once you know the job, choosing gets a lot easier.

This guide explains motorcycle insurance in India in plain language. You will find the types of policies, what an add-on (also called a rider) is, how zero depreciation and Return to Invoice work with real numbers, how your no claim bonus builds up, and what to do when you actually have to make a claim. We have also added the parts that matter to riders in particular, like modifications, riding gear and touring.

One recent change is worth knowing before you buy a new bike. The Supreme Court has directed that mandatory third party cover for new two-wheelers go up from five years to six. We explain it in the section on types of policies.

The short version

• Third party is the legal minimum. It pays for harm you cause to other people and their property. It pays nothing for your own bike.
• Comprehensive is third party plus own damage. It also pays for your bike after an accident, fire, flood or theft.
• Zero depreciation is not a policy type. It is an add-on that stops the insurer from cutting the price of replaced parts.
• Return to Invoice is an add-on that covers the gap between your bike's insured value and what you actually paid, if the bike is stolen or written off.
• No claim bonus can cut your own damage premium by up to 50 percent, and it belongs to you, not the bike.
• Personal accident cover of ₹15 lakh for you as the owner-rider is compulsory and comes with the policy.

In this guide

1. Why you need bike insurance
2. What insurers count as an accident
3. Insurance terms in plain English
4. Types of bike insurance policies
5. How a claim amount is worked out
6. Add-ons explained: zero depreciation, Return to Invoice and more
7. No claim bonus (NCB)
8. Cashless claims and reimbursement claims
9. How to make a claim, step by step
10. What bike insurance does not cover
11. What riders should know beyond the basics
12. Buying and renewing your policy
13. Things to check in every policy
14. Related guides
15. FAQs

Why you need bike insurance

Bike insurance does two jobs, and it helps to keep them separate.

The first is legal. The Motor Vehicles Act requires every two-wheeler on the road to have at least third party cover. Riding without it can cost you a fine of up to ₹2,000 for a first offence and up to ₹4,000 for a repeat, and in some cases up to three months in jail. You are expected to carry the policy along with your licence and RC, and a digital copy on your phone is accepted.

The second job is financial. A hospital bill for someone you hit, a car you dented, or a cracked fairing on your own bike can easily run into lakhs. Insurance moves most of that cost to the insurer, which is the whole point of paying a premium.

Enforcement is tightening too. The Supreme Court has pointed out that a large share of vehicles on Indian roads are uninsured, and it has proposed camera-based checks and a "no insurance, no fuel" pilot. Those are proposals for now, but expired insurance is going to get harder to get away with.

What insurers count as an accident

Insurance pays for accidents, meaning events that are sudden, unintended and not certain to happen. That sounds like legal fine print, but it explains most rejected claims.

• Deliberate damage is not an accident. Setting your own bike on fire to claim is fraud, and it is treated that way.
• Wear and tear is not an accident. Worn brake pads, a stretched chain and a tired clutch are maintenance, not claims. If you want your drivetrain to last longer, our guides on how to lube a bike chain and sprockets are a good start, and the maintenance hub has more.
• A breakdown is not an accident. If your engine seizes because the oil ran low or the bike was pushed too hard, that is a mechanical failure and it will not be paid.
• Avoidable follow-on damage can be refused. The classic case is a flooded bike. If you crank the engine after water gets in, the resulting engine damage is usually treated as your doing, not the flood's. Engine Protect (covered below) exists for exactly this. Our guide to riding in the rain has more on monsoon riding.

Insurance terms in plain English

Here are the words you will meet on every quote and policy. Skim this once and the rest of the guide gets easier.

Types of bike insurance policies

India has three types of two-wheeler policy. Think of insurance as an umbrella: the same idea, but it comes in different sizes.

A common mix-up: many people, and older versions of this guide, list Zero Depreciation as a third type of policy. It is not. It is an add-on that sits on top of comprehensive or own damage cover. We cover it in its own section further down.

1. Third party insurance

This is the compulsory one. It covers your legal liability if your bike injures or kills someone, or damages their property, which includes their vehicle. Compensation for injury or death is decided by the Motor Accident Claims Tribunal, and the insurer's liability there has no upper limit. Damage to property is capped. Some policy documents show ₹7.5 lakh and others ₹1 lakh, so check the figure on your policy schedule.

Every third party policy also carries compulsory personal accident cover of ₹15 lakh for you as the owner-rider, for death or permanent disability in an accident. If you already have a separate PA policy of at least that amount, or you do not hold a valid licence, you can ask to waive it.

What it does not cover: your own bike (accident, theft, fire, flood), and your own medical bills.

The premium is fixed by IRDAI and is the same at every insurer. It depends only on engine size. These are the rates in force since April 2022, before GST. IRDAI revises them from time to time, so treat the table as a guide and confirm on your quote.

Third party alone suits a very old bike with little resale value, or a bike you barely use. For anything you would miss if it disappeared, it is a gamble.

2. Standalone own damage (OD) insurance

This covers your bike, and only your bike: accident damage, fire, theft, flood, riots and similar events. It does not cover anyone else, so you can only buy it if a third party policy is already active.

It is handy in two situations. One is a new bike, where the long third party policy is already running and you buy own damage cover year by year. The other is when you want to move your own damage cover to a different insurer at renewal without touching the third party policy. You can add zero dep, RTI and other add-ons to it.

3. Comprehensive (package) insurance

Comprehensive is third party plus own damage in one policy, with the compulsory PA cover included. It is what most riders mean when they say "full insurance". It is the only route to add-ons, and it is the sensible default for any bike with real value.

New bikes: the long third party policy (5 years is becoming 6)

Since 2018, new two-wheelers have been sold with a long third party policy paid upfront, bundled with one year of own damage cover. Until now that was five years of third party cover.

On 4 August 2026, the Supreme Court directed that the period for new two-wheelers go up to six years (and four years for new cars). It also asked IRDAI to issue the implementation rules, and the requirement applies to vehicles bought and registered after those rules take effect. So ask your dealer what applies on your purchase date, and expect the upfront insurance amount on the invoice to rise.

Two things to keep straight. Six years of third party cover does not mean six years of protection for your own bike. The own damage part is still yearly, and you renew it every year. And because the two parts are separate, you are free to shop around for own damage cover at each renewal.

Third party vs own damage vs comprehensive

How a claim amount is worked out

Two riders can have the same accident and get very different payouts. The difference usually comes down to IDV, depreciation and deductibles.

IDV: the number that decides a total loss payout

For the first five years, IDV is the manufacturer's listed selling price (the ex-showroom price, without registration and road tax) minus depreciation for the age of the bike. After five years, you and the insurer agree a value. Here is the standard age schedule.

Example: a bike with an ex-showroom price of ₹1,50,000 that is two and a half years old gets an IDV of ₹1,05,000 (70 percent).

It is tempting to lower the IDV to save a bit on premium. Do not. If the bike is stolen or written off, you get the IDV you declared, not what the bike was really worth. Also check that an agent has not quietly lowered it to show you a cheaper quote.

Depreciation on parts (what you lose without zero dep)

When a comprehensive claim involves replacing parts, the insurer deducts depreciation from the price of those parts. Labour charges are paid, but consumables such as engine oil, nuts, bolts and washers usually are not. Here is how the deductions work.

Tyres and tubes are usually covered only if they are damaged in the same accident as the rest of the bike, not when they wear out or get a puncture. Our tyre guide explains how to judge tyre wear yourself.

Total loss and constructive total loss

A total loss means the bike is stolen and not recovered, or completely destroyed. A constructive total loss means the bike could technically be repaired, but the repair bill would cross about 75 percent of the IDV, so the insurer treats it as written off.

In both cases the insurer pays the IDV (after the age-based schedule and the deductible), the policy closes, and the wreck usually goes to the insurer. This is exactly the situation where Return to Invoice matters, because IDV is nearly always lower than what you paid for the bike.

Add-ons explained: zero depreciation, Return to Invoice and more

Add-ons, also called riders, are optional extras you buy with a comprehensive or standalone own damage policy for an additional premium. They do not work with third party alone. Names, limits and prices differ from insurer to insurer, so always read the add-on wording.

Zero depreciation cover (nil dep or bumper to bumper)

Zero depreciation is the add-on that most riders end up glad they bought. Normally the insurer deducts depreciation on every part it replaces, and you pay the difference. Zero dep removes that deduction, so the insurer pays the full cost of the parts.

Here is what that looks like on a cracked plastic fairing panel that costs ₹6,000 (labour left out to keep the numbers simple):

What zero dep does not cover:

• The compulsory deductible, which you still pay.
• Consumables like oil, nuts and bolts, unless you also buy a consumables cover.
• Mechanical or electrical failure and normal wear and tear.
• Theft or total loss. No parts are being replaced there, and that is Return to Invoice territory.
• Some policies limit or exclude tyres and batteries, so check.

Fine print to check before buying: some insurers limit the number of zero dep claims per policy year (often to two), and many offer it only for bikes up to around five years old. It is available only with comprehensive or own damage cover, and it raises the premium.

Who should take it:

• Anyone with a new bike, or one under about five years old.
• Owners of sports, naked and adventure bikes with expensive plastic or fibre bodywork. One low-speed tip-over can crack several panels at once.
• Riders who commute in heavy city traffic, where scrapes and parking drops are common.
• Anyone with a loan or a premium bike, where repair bills sting.

Who can skip it: owners of older, low value bikes where parts are cheap, and riders who would rather pay for small repairs themselves and keep the premium low.

Return to Invoice (RTI) cover

If your bike is stolen or written off, a standard policy pays the IDV. The problem is that IDV starts falling from day one and never includes road tax or registration. So the payout is usually well short of what it costs to buy the same bike again.

Return to Invoice fixes that. It pays the invoice value of your bike, plus road tax and registration where the policy says so, so you can replace it with an equivalent new one without digging into your savings.

Here is an illustration. A bike has an ex-showroom price of ₹1,50,000 and you paid another ₹20,000 in road tax and registration. It is stolen in its second year and never recovered.

When RTI pays: only for theft where the bike is not recovered, or for a total loss or constructive total loss. It does nothing for repair claims, which is why it is a different tool from zero dep.

Conditions to expect:

• It is available only with comprehensive or own damage cover, never with third party alone.
• It is meant for new bikes. Most insurers offer it for the first two or three years of the bike's life, and it is usually bought with the policy.
• You will need the original purchase invoice at claim time, so keep it safe.
• The underlying claim has to be accepted under your own damage cover first. If a theft claim is rejected, RTI does not pay either.
• Accessories that were not declared and insured are generally not included.
• It costs extra, and insurers price it differently. Ask whether it pays only the invoice value or also road tax and registration.

Who should take it: buyers of new and expensive bikes, financed bikes (you still owe the loan even if the bike is gone), and anyone who parks on the street or in areas where theft is a real worry. On a cheap or older bike it is rarely worth it.

Zero Dep vs Return to Invoice at a glance

If your budget allows, taking both on a new bike for the first two or three years is a sensible setup. If you can only pick one, zero dep is more likely to pay out.

Other add-ons worth knowing

No claim bonus (NCB)

No claim bonus is your reward for a year without claims. It is a discount on the own damage part of your premium. Third party premium stays the same because IRDAI fixes it.

Keeping your NCB when you switch insurer or bike

• NCB belongs to you, not the bike. If you change insurer, ask the old one for an NCB certificate or retention letter and give it to the new insurer.
• Renew within 90 days of expiry. After that, the accumulated NCB is usually lost.
• If you sell your bike, the buyer does not get your NCB. You carry it to your next bike, and the time window for that depends on your insurer, so get the certificate at the time of sale.
• NCB earned on a bike does not move to a car, or the other way round.

Should you claim for small repairs?

A claim usually resets your NCB to zero at the next renewal. So before you claim for a small repair, do the maths. Say your OD premium before any discount is ₹4,000 and you are at 45 percent NCB, so you pay ₹2,200. After a claim you may pay the full ₹4,000, which is ₹1,800 more, and you have to rebuild the discount over the following years. A ₹2,000 repair is not worth claiming in that case. NCB Protect changes that equation, which is why it suits riders with several claim-free years.

Cashless claims and reimbursement claims

With comprehensive or own damage cover, claims are settled in one of two ways, depending on your insurer and where you get the bike repaired.

• Cashless: you take the bike to a garage on the insurer's network. The garage bills the insurer directly, and you pay only the deductible and anything the policy does not cover, like depreciation and consumables.
• Reimbursement: you pay the full repair bill yourself, submit the bills, and the insurer pays you back what it approves.

Cashless matters a lot when repairs are expensive, because you are not fronting a large sum and waiting weeks to be repaid.

A rider-specific tip: before you buy or renew, check whether your brand's authorised service centre is on the insurer's cashless list. For premium bikes and superbikes, an independent garage is often not an option, and a mismatch means reimbursement claims. Our guide to buying a superbike in India covers other costs to plan for.

How to make a claim, step by step

If you have an accident

1. Step 1: Get safe and get help
   Check for injuries first and call for medical help if needed. The bike can wait. If it is stuck on the road or a highway, our roadside breakdown protocol guide explains how to stay safe until help arrives.
2. Step 2: Document everything
   Photograph your bike, the scene, the other vehicle's number plate and any witnesses. Do not admit fault at the scene.
3. Step 3: Tell your insurer quickly
   Use the app, helpline or email and note your claim number. Policies have time limits for reporting, so do not sit on it.
4. Step 4: File an FIR where needed
   You need one for theft, injury or death of a third party, and most major accidents.
5. Step 5: Wait for the surveyor
   The insurer sends a surveyor to assess the damage. Do not start repairs before the inspection and approval unless it is an emergency.
6. Step 6: Repair and settle
   Take the bike to a network garage for cashless, or to your own garage for reimbursement. Pay the deductible and any uncovered items, collect the bike, and keep all bills.

If your bike injured or damaged someone else's property, tell your insurer immediately and do not agree to a private settlement on your own. Compensation is decided by the tribunal, and your insurer handles that process.

If your bike is stolen

1. Step 1: File an FIR at once
   Do it the same day, and keep several copies.
2. Step 2: Inform your insurer
   Report the theft the same day and register the claim.
3. Step 3: Wait for the police report
   The police will eventually issue an untraced report if the bike is not found.
4. Step 4: Submit your documents
   Expect to hand over the original keys, RC, policy, KYC, the FIR, the untraced report, and any transfer forms your insurer asks for.

Documents you will usually need

• Copy of the policy and the premium receipt
• Duly filled claim form
• Registration certificate (RC) of the bike
• Driving licence
• Photographs of the damage
• Repair estimate from the garage
• Final bills and payment receipts, if you are claiming reimbursement
• FIR or police report for theft, third party injury or a serious accident
• KYC documents and bank details for the payout

If a claim is rejected or delayed without a good reason, write to your insurer's grievance officer first. If that goes nowhere, you can escalate on IRDAI's Bima Bharosa portal, and after that to the Insurance Ombudsman.

What bike insurance does not cover

A claim is likely to be rejected in these situations:

• You were riding under the influence of alcohol or drugs.
• You did not hold a valid licence, or the licence was not valid for your class of bike.
• The loss came from illegal activity, including street racing and stunts. Track days and organised racing are also outside a regular policy, and need separate cover.
• The damage is wear and tear, or a mechanical or electrical breakdown.
• Only the tyres were damaged, with no other damage to the bike.
• The engine was damaged after you started it in floodwater, and you do not have Engine Protect.
• The bike is on a private policy but used commercially, such as for food delivery or as a taxi.
• The loss happened outside India. If you plan to ride into Nepal or Bhutan, ask your insurer what is available.
• Major modifications or wrong information were not declared to the insurer.
• Personal belongings, helmets, riding gear and luggage were damaged or lost. The policy covers the bike only.

What riders should know beyond the basics

Modifications and accessories

If you have changed anything meaningful on your bike, like the exhaust, handlebars, lighting, engine work or a luggage rack, tell your insurer. An undeclared modification can lead to a reduced or rejected claim. Aftermarket parts are not part of your IDV unless you list them, so ask about accessories cover and keep the invoices. If you are shopping for parts, browse our bike accessories, exhausts and motorcycle luggage pages.

Your riding gear is not covered

Bike insurance repairs the bike. It does not replace a helmet that took a hit, a jacket that slid down the road, or gloves that saved your hands. The compulsory PA cover pays for the owner-rider's death or permanent disability, not for gear or hospital bills, so medical costs need a health or accident policy of their own.

That is why good gear matters. It is the only cover that works before the accident, not after. If you are due for an upgrade, start with the basics in what is riding gear, then look at helmet fit, jackets, gloves, boots and riding pants. You can browse our helmets and riding gear ranges too.

Touring and long rides

Carry your RC, licence, insurance and PUC certificate, with digital copies on your phone in case the originals get wet or lost. Save your insurer's helpline number offline, because mobile signal can vanish on remote roads. Roadside assistance is worth considering if you regularly ride long distances. Our guide on items to carry on a long motorcycle tour has a full checklist, and the touring hub covers trip planning.

Buying a new or used bike

On delivery day, check that the policy details match your bike as part of your pre-delivery inspection. When buying used, make sure the policy is transferred to your name, remember that the seller's NCB does not come with the bike, and ask about claim history. Our guides on buying a used superbike and haggling on a used superbike cover the rest of the checklist. Still deciding which bike to buy? See how to choose a motorcycle.

Buying and renewing your policy

Where to buy

You can buy from an insurer directly, through an online comparison site, from an agent or from your dealer. You are free to choose any insurer, even when buying a new bike. Dealer packages are convenient, but they are not always the cheapest, so get at least one online quote to compare. Compare like with like: the same IDV and the same add-ons. The third party part costs the same everywhere, so the differences are all in own damage and add-ons.

What decides your premium

• Engine capacity (this sets the third party part)
• IDV, which depends on the bike's model, price and age
• Make and model, since repair and parts costs differ
• Where the bike is registered and used
• Your NCB
• Add-ons you select
• Any voluntary deductible you choose

To lower the premium without hurting yourself, keep your NCB, choose only the add-ons you will use, and consider a modest voluntary deductible if you rarely claim. Avoid cutting the IDV.

Do not let it lapse

There is no grace period for riding without valid insurance. If your policy expires, renew it before the date, and set a reminder 15 to 30 days ahead. After a gap, the insurer may want to inspect the bike before issuing a policy, and your NCB is lost once the gap crosses 90 days.

Selling your bike

Transfer the policy to the buyer, get your NCB certificate, and keep a copy of the transfer paperwork. The NCB stays with you.

Things to check in every policy

Spend five minutes on the policy document as soon as you get it. Mistakes are easy to fix on day one and painful to fix during a claim.

• Registration number, chassis number and engine number match your RC. A mismatch can delay or sink a claim.
• The IDV is fair and has not been lowered without your knowledge.
• Every add-on you paid for is listed, with its name and limits.
• The policy start and end dates are right, for both own damage and third party if they run separately.
• Owner-rider PA cover is included, or the reason for waiving it is recorded.
• The NCB percentage is what you expected at renewal.
• Modifications and accessories you want covered are declared.
• Loan details are correct if the bike is financed.

Related guides

• Taking delivery of your bike: the ultimate pre-delivery inspection checklist, to check the paperwork and the bike on the day.
• Buying a superbike in India, for the costs beyond the sticker price.
• Tips for buying a used superbike, including what to ask about insurance history.
• How to stay dry while riding in the rain, useful context for Engine Protect.
• Items to carry on a long motorcycle tour, including the documents to keep with you.

You can find more in our Motorcycle Buying & Ownership Advice hub.

FAQs

Q1: Is third party insurance enough for a motorcycle?

A1: It keeps you legal, and that is about all it does. It pays for injury or damage you cause to other people and their property, but nothing for your own bike, whether the loss comes from an accident, theft or a flood. If your bike is old and cheap, third party alone can make sense. For anything you would struggle to replace, comprehensive cover is the safer choice.

Q2: What is the difference between third party, own damage and comprehensive insurance?

A2: Third party covers other people. Own damage covers your bike. Comprehensive is both in one policy. Third party is compulsory, own damage is optional, and you can only buy a standalone own damage policy if you already have an active third party policy.

Q3: What is zero depreciation in bike insurance?

A3: Zero depreciation is an add-on that removes the depreciation cut normally applied to replaced parts. Without it, the insurer deducts 50 percent on plastic and rubber parts and 30 percent on fibre parts, and you pay that difference. With it, the insurer pays the full cost of the parts and you only pay the compulsory deductible and anything the policy excludes, such as consumables.

Q4: Is zero dep worth it for a motorcycle?

A4: For a new or fairly new bike, usually yes, especially if it has expensive plastic or fibre bodywork. It is worth less on an older bike, where parts are cheaper and many insurers stop offering it after about five years anyway. Check the limit on claims per year and whether tyres and batteries are included before you buy.

Q5: What is Return to Invoice cover?

A5: Return to Invoice (RTI) is an add-on that pays your bike's invoice value, plus road tax and registration where your policy says so, if the bike is stolen and not recovered or is declared a total loss. A standard policy pays only the IDV, which is lower. RTI closes that gap. It does not apply to ordinary repair claims.

Q6: Do I need both zero dep and Return to Invoice?

A6: They solve different problems. Zero dep helps with repair bills, while RTI helps if the bike is lost or written off. On a new bike, both make sense for the first two or three years if the premium fits your budget. If you can only pick one, zero dep is more likely to actually pay out.

Q7: What is IDV, and should I keep it high or low?

A7: IDV stands for Insured Declared Value. It is the amount your bike is insured for and the most you will receive if it is stolen or written off. Keep it close to the real market value of your bike. Lowering it saves a small amount on premium but can cost you far more in a total loss claim.

Q8: How does no claim bonus work, and does it transfer?

A8: NCB is a discount on your own damage premium. It starts at 20 percent after one claim-free year and reaches 50 percent after five. It belongs to you, not the bike, so it can move with you to a new insurer or a new bike. Renew within 90 days of expiry or you lose it, and ask for an NCB certificate when you sell the bike or switch insurers.

Q9: Does bike insurance cover theft?

A9: Only if you have comprehensive or own damage cover. Third party does not. For a theft claim, file an FIR straight away, tell your insurer the same day, and be ready to hand over the original keys and RC. Return to Invoice cover improves the payout if the bike is not recovered.

Q10: Does bike insurance cover my helmet and riding gear?

A10: No. The policy covers the bike. The mandatory personal accident cover pays for the owner-driver's death or permanent disability, not for damaged gear or hospital bills. Medical costs need a separate health or accident policy.

Q11: How many years of third party insurance does a new bike need in 2026?

A11: Until recently it was five years, bundled with one year of own damage cover. On 4 August 2026 the Supreme Court directed that this be raised to six years for new two-wheelers and asked IRDAI to issue the implementation rules. Ask your dealer what applies on your purchase date. The own damage part is still a yearly policy.

Q12: What happens if I ride with expired insurance?

A12: You risk a fine of up to ₹2,000 for a first offence and up to ₹4,000 for a repeat. If you have an accident, you pay third party damages and your own repairs yourself. Your no claim bonus is lost if the policy stays expired for more than 90 days, and the insurer may want to inspect the bike before it renews the policy.

Q13: Which documents do I need to make a bike insurance claim?

A13: Usually the policy copy, a filled claim form, your RC and driving licence, a repair estimate, final bills and payment receipts if you are claiming reimbursement, and photographs of the damage. For theft, third party injury or a major accident, you also need an FIR. Your insurer may ask for KYC documents and bank details as well.

Rates, limits and rules change. This guide is for general understanding and is not financial or legal advice. Your policy wording and IRDAI have the final say.

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