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Upon securing a job and getting regular salary, most people in India tend to fancy buying a bike as their first vehicle from their income. The Government of India has made it mandatory for every bike owner to get an insurance policy. If you are caught riding a bike without insurance, then you are liable to pay a penalty. The bike owner must carry a valid copy of the insurance policy at all times.

A Two-Wheeler Insurance policy can be procured from many insurance companies. Before zeroing on a particular one, check their credentials and verify what they are offering you. Finalise the one who is giving you the best deal. By paying a premium for the policy, one can be rest assured about the expenses incurred in repairing the bike if it is damaged in an accident, or in a natural calamity like floods, earthquake etc., or if it is stolen. The insurance company will provide financial aid to the policy holder in the above said circumstances. Insurance companies offer policies with coverage terms of one, two or three years.

Types of Two-Wheeler Insurance:

In India, insurance companies offer two types of insurance to their customers. They are:

  • Liability only Insurance:

    It is the most basic type of vehicle insurance and is mandatory for Bike Insurance. It is also called “third-party liability insurance”. It covers third party injuries, death and vehicle damage. Under this policy, insurance coverage is offered to a third party who is injured or whose vehicle is damaged by the insured vehicle. This policy does not provide financial aid to the owner of the insured vehicle.

    You can read more on third party insurance here.
  • Comprehensive Insurance:

    It is an all-inclusive insurance policy. This plan takes care of two types of coverage. The first part is the liability only plan where in, it covers only the third-party injuries, death and damage. The second part of this policy provides aid to the owner of the insured vehicle in case of accident, death, theft, natural disasters. It also offers Personal Accident cover to the vehicle owner. It is a bit costlier than the other policies, but one can reap maximum benefits out of this policy.


  • The prime benefit of an insurance policy is that it provides financial aid for repair works of the bike after an accident (big or small), or a natural calamity or if the bike is stolen.
  • The Insurance policy works in favour of the policy holder as it does not burn a hole in his pocket when he has to repair the bike after an accident.
  • Often bikes are owned by people with limited sources of income. So, repair costs would be an additional burden on their budget. Thus, a Bike Insurance ensures they need not worry about expenses arising due to repairs.
  • Paint touch up or dent repair cost will also be covered. However, this is subjected to policy condition on depreciation.
  • It offers coverage for partial as well as complete loss of the bike.
  • In addition to your own bike costs being reimbursed, third party bike costs will also be reimbursed. Under the third-party liability insurance, apart from bike repair cost of third party, injuries suffered by the third party will also be taken care of.
  • The Bike owner can avail of a cashless claim settlement facility at innumerable garages. This way they don’t have to part with money and later wait for reimbursement.
  • With bad road conditions and rash driving or lack of driving rules among many people, it is highly imperative to have insurance policy for your vehicle.

Looking to apply for a Two Wheeler Insurance through HDFC Bank? Click here to get started!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.