Approved Anti-Theft Devices for Bikes and Their Impact on Insurance Premium

An approved anti-theft device for bike can be important to have, as it can lower insurance costs. The following benefits help understand why these devices matter for bike insurance:

• Lower Theft Risk

A bike fitted with an approved anti-theft device may be considered lower risk by some insurers. Since these devices can help reduce the chances of theft, the insurer’s overall liability may also decrease. As a result, policyholders may receive lower insurance premiums or eligible premium discounts in certain cases.

• Eligibility for Premium Discounts

If the anti-theft device installed on the bike is approved by the Automotive Research Association of India (ARAI), policyholders may become eligible for discounts on comprehensive bike insurance policies. The percentage of discount may vary depending on the insurer and the policy terms and conditions.

• Preservation of No-Claim Bonus (NCB)

No-claim bonus is an annual discount offered by insurers for not making claims. By preventing theft, anti-theft devices can help maintain your NCB. This bonus can add up each year and may make your motor insurance increasingly affordable.

• Faster Claim Process

Bikes fitted with anti-theft devices may be easier to trace and recover in case of theft compared to vehicles without such systems. Since the chances of vehicle recovery may increase, the claim process could become smoother in certain situations, as a total loss claim may not always be required.

• May Lead to an Increase in an Old Bike’s Value

Older bikes may be more vulnerable to theft due to worn-out locks or the absence of modern security features. Installing an approved anti-theft device may help improve the security of such vehicles and could also support better insurability in certain cases.

An anti-theft device is a security system installed in a vehicle to help prevent theft and improve vehicle safety. These devices may work by physically restricting vehicle movement, detecting unauthorised access attempts, or triggering alerts during suspicious activity. Some anti-theft systems may also include tracking features that help monitor the vehicle’s location in case of theft.

In the context of car insurance or bike insurance, an anti-theft device refers to a security system approved and certified by the Automotive Research Association of India (ARAI). These devices undergo strict testing for effectiveness, reliability, and vehicle compatibility.

Though an insurance regulator, there is no IRDAI-approved anti-theft device for bike. However, the installation of an ARAI-approved anti-theft device can allow you to enjoy a discount.

When purchasing an anti-theft device, choosing an ARAI-approved model may help improve vehicle security and support eligibility for insurance-related discounts in certain cases. Some commonly used anti-theft devices include:

• Gear Locks and Disc Locks

Gear locks and disc locks help restrict the movement of the bike by preventing the gear shifter or disc brakes from rotating. These locks may provide an added layer of physical security for two-wheelers.

• GPS Trackers

GPS trackers help monitor the real-time location of the vehicle and may assist in recovering stolen bikes. While these devices may not physically prevent theft, they can support vehicle tracking and monitoring.

• Immobilisers

Immobilisers are security devices designed to restrict vehicle operation or movement. These may include handle locks, tyre locks, high-security chains, or disc locking systems that help reduce unauthorised usage.

• Anti-Theft Alarms

Anti-theft alarms are sound-based security systems that activate during unauthorised access or theft attempts. The alert sound may help notify nearby people and increase the chances of theft prevention.

If a bike is stolen, the insurance claim settlement is generally processed according to the policy terms and the vehicle’s Insured Declared Value (IDV). Installing an anti-theft device may help reduce the risk of theft and lower the chances of theft-related claims. Since these devices can improve vehicle security, some insurers may consider them while determining policy premiums and applicable discounts.

The discount on an anti-theft device for bike insurance premium usually applies to ARAI-approved devices. These systems are sophisticated and therefore efficient.

Under Motor Tariff guidelines followed by many insurers, vehicles fitted with Automotive Research Association of India (ARAI)-approved anti-theft devices may be eligible for discounts on the Own Damage (OD) premium component. In many cases, the discount may be up to 2.5%, subject to insurer-specific terms, conditions, and applicable limits. 

To claim an anti-theft device discount on bike insurance, policyholders may follow these steps:

• Install an ARAI-approved anti-theft device on the bike.

• Obtain the installation certificate or supporting proof from the authorised installer. 

• Inform the insurance company about the anti-theft device installation.

• Submit the required documents and installation certificate to the insurer.

• Request activation of the applicable anti-theft discount.

• Check the updated premium details during policy issuance or renewal.

The applicable discount may vary depending on the insurer’s terms, policy conditions, and premium structure.

An ARAI-approved anti-theft device, when installed on a two-wheeler, can not only help improve security but can also enable premium reduction. They can help maintain the no-claim bonus or speed up the claim process. When an insurer is informed of the installation, a policyholder can receive better financial protection through an IRDAI-regulated premium discount.

SBI General Insurance offers two-wheeler insurance solutions designed to support vehicle protection, financial preparedness, and convenient policy management services.

1. What is an ARAI-approved anti-theft device for bikes?

An ARAI-approved anti-theft device is one that has undergone rigorous testing and offers top-notch two-wheeler security.

2. How much discount do I get on bike insurance for anti-theft devices?

Many insurers may offer up to 2.5% discount on the Own Damage premium, subject to policy terms and limits.

3. Which anti-theft devices are accepted by all insurance companies?

Most insurers prefer ARAI-approved devices such as immobilisers, alarms, GPS trackers, disc locks, and gear locks.

4. Does a GPS tracker reduce the bike insurance premium?

A GPS tracker may help reduce premiums if it is ARAI-approved and recognised by the insurer for discounts.

5. How do I prove I have an anti-theft device to my insurer?

You may need to submit the installation certificate and device details to the insurer at the time of purchase or renewal.