For a majority of Indians, a two-wheeler is an important component of daily life. Most commuters are very satisfied with this economical, convenient and pocket-friendly mode of transport.

Being an integral part of everyday life, it is also important that you make sure your beloved two-wheeler is well covered. And this is where bike insurance policy plays a significant role. In India, it is mandatory to buy two-wheeler insurance for your bike/ two-wheeler.
Under the Insurance Regulatory and Development Authority of India (IRDAI), regular innovations are made in the field of insurance to make the two wheeler insurance rules simpler and clearer. The bike Insurance IRDAI rules make it easy for a bike owner-rider to be well aware of his duties on the road. In this article, we would take a look at the IRDAI regulations for bike insurance policies:
Third-Party Bike Insurance IRDAI Rules
Under the Motor Vehicle Act, 1988 and as per the guidelines of the IRDAI regulations for bike insurance India, third-party insurance is mandatory for every motorised two-wheeler. The TPI covers the damages to the third party, meaning that if while riding you accidentally cause damage to a third-party. The third-party could be a person, a vehicle or property.
Keep in mind the following rules:
- Your own damages would not be covered under third-party insurance
- Compensation to be paid is decided by the court
- In case of unforeseen death of insured or injury caused to the third-party, the insurer will pay for the losses that you are responsible to pay
Rules for TPI for new bikes
Here are the rules that you need to keep in mind when buying a new bike:
- All new bikes bought after 1 September 2018 need to buy third-party liability cover for 5 years. IRDAI has made it mandatory for each bike to be covered with long-term TP cover.
- The IRDAI has also passed the ruling to enhance the Personal Accident Cover from INR 1 lakh to INR 15 lakhs now.
- The IRDAI has also unbundled the PAC and has allowed its purchase as a standalone policy. In case you are already covered under the compulsory PAC through an insurance company, you need to buy another PAC when you purchase another vehicle.
Comprehensive Bike Insurance IRDAI Rules
As the name suggests, a comprehensive bike insurance policy offers wider coverage. Apart from the third party liabilities it also covers the damages that your bike may suffer in an accident.
Keep in mind the following rules:
- Damages caused due to natural calamities such as floods, earthquakes, landslides are covered
- Damages due to man-made calamities such as riots, vandalism, terrorist activities are covered Theft of your bike
Other Two-Wheeler insurance rules
- An INR 500 to INR 1000 can be imposed if road laws are not being followed
- In case a rider does not cooperate with the authorised personnel he/ she can be imposed with an INR 5,000 fine
- If found riding without a valid Driver's License, the rider can be asked to pay a fine of INR 5,000
- There is an INR 1,000 fine for exceeding the speed limit
- Hazardous driving can land you in jail for 6 months/ and an INR 1,000 fine
Bike Insurance IRDAI Rules for Personal Accident (PA) Cover
PA Cover is a mandatory cover for the owner-driver of the bike that is insured. The cover is provided in third-party as well as comprehensive bike insurance. This includes:
- Sum assured of INR 15 lakhs in case of total disability or death of the owner
- The compensation is provided on the following basis:
Coverage | Compensation |
---|---|
Death | 100% of the sum insured would be paid as a compensation |
If both limbs or both eyes or one eye and one limb are lost in the accident | 100% of the sum insured would be paid as a compensation |
If only one eye, or one limb is lost in the accident | 50% of the sum insured would be paid as a compensation |
Bike Insurance IRDAI Rules for Exclusions
Despite the wide coverage of a two-wheeler insurance plan, there are many situations that are not covered by the insurance company. These exclusions are under the guidelines issued by the IRDAI, and are followed by all insurance companies:
- Under third-party insurance, damages to your two-wheeler will not be covered
- Electric and mechanical damages that take place in a two-wheeler are not covered
- If the rider is fund drunk/ intoxicated when the accident took place the claim will not be accepted
- Claim will also not be accepted if the rider does not have a valid Driver's License
Being aware of the bike Insurance IRDAI rules will help you in understanding your bike insurance policy better. You would know how your policy works and what all it covers. It is recommended that you stay updated with the recent guidelines so that you are able to keep your beloved two-wheeler under proper coverage.