IRDA was founded in 2000. IRDAI is its current name. This autonomous body sets Indian insurance rules to ensure fairness, clarity, and order. #

  1. IRDAI two-wheeler insurance rules#

India’s IRDAI two-wheeler insurance rules are detailed. It includes coverage types, plan inclusions and exclusions, insurance renewal rules, etc. They protect the insured, as mentioned. Thus, they bind the insurer and insured.#

IRDAI two-wheeler insurance guidelines

IRDAI regulates all Indian two-wheeler insurance policies. Two basic 2-wheeler insurance policies and their guidelines are listed below.

Third-party liability

The most basic bike insurance is third-party bike insurance. The Motor Vehicles Act of 1988 requires two-wheeler owners to have third-party insurance. This insurance policy only covers third-party liabilities like injury, passing away, or property damage.

  • This plan covers third-party liabilities, as mentioned. These are IRDAI-mandated coverages #
  • The insurer pays for third-party injuries or passing away
  • Third-party losses or injuries will determine monetary compensation
  • Compensation for untimely passing away is based on the deceased’s net worth
  • This plan covers third-party property damage. Damage intensity determines financial compensation

Full coverage

Comprehensive bike insurance covers third-party liability and own damage (OD). The OD cover protects against bike theft, accidental damage, and natural and manmade disasters.

  • Comprehensive motor insurance covers more than the above plan. These are IRDAI-mandated coverages #
  • In an accident, the insurer will replace or repair bike parts
  • If the two-wheeler is stolen or destroyed, the insurer will pay the IDV
  • Bike parts damaged by natural or manmade disasters will be compensated
  • The insurer will compensate scenarios based on add-ons
  1. IRDAI personal accident (PA) cover rules #

It’s a government-mandated PA coverage. It’s separately bought when insuring your car. It will pay a lump sum if the insured passes away or becomes disabled.


PA covers up to 15 lakhs. The insurer may pay a percentage of the sum insured depending on the loss.

  1. IRDAI new two-wheeler insurance rules#

2020 IRDAI two-wheeler insurance rules include these.

  • The bike rider receives a challan of Rs. 500 for the first offence and Rs. 1,500 for repeat offences
  • Road rules violations result in Rs. 500–1,000 fines
  • Riders will be charged Rs. 2,000 for not cooperating with authorities
  • Riding without a licence will cost Rs. 5,000
  • Riding a bike after disqualification will cost Rs. 10,000
  • Riding overspeeding will cost Rs. 1,000.
  • The rider must pay Rs. 1,000 or serve six months for dangerous driving
  • Mandatory bike insurance documents

Your insured two-wheeler must always carry the following government-mandated documents. 

  • Two-wheeler insurance
  • Driving licence 
  • PUC
  1. IRDAI’s depreciation rules#

Two-wheeler part depreciation guidelines from IRDAI are below.#

  • Fibreglass components depreciate 30%
  • Tubes, rubber, batteries, nylon, plastic, and tyres depreciate 50% in two-wheelers
  • Glass depreciates nothing
  • The policy will depreciate metal parts
  1. IRDAI two-wheeler insurance renewal rules#

Some key IRDAI bike insurance renewal rules are below. #

  • Continuous coverage requires timely policy renewal
  • The insurer will not cover damages after the policy expires
  • No Claim Bonus (NCB) will be lost if bike insurance is not promptly renewed within 90 days

* Standard T&C Apply

# Visit the official website of IRDAI for further details.

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