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GetDoes Bike Insurance Remain Valid for 5 Years?
Sep 5, 2025
With an increasing number of motorcycles on Indian roads, the Insurance Regulatory and Development Authority of India (IRDAI) routinely modifies vehicle insurance requirements. This is to make sure that every vehicle owner obtains a bike insurance plan. According to the new directives from the insurance regulator IRDAI, bike insurance cover is made available in three forms: long-term, comprehensive, standalone long-term third-party, and bundled bike insurance policy. Among these, long-term, third-party and bundled have a five-year validity. This composition will explain the 5-year bike insurance policy, how it differs from the traditional 1-year policy, and its impact on coverage and premiums.
Why Is 5-Year Bike Insurance Required?
Following a Supreme Court ruling in September 2018, IRDAI has made it obligatory for all new two-wheelers to be issued a 5-year insurance cover. This has been done to make sure that a maximum number of two-wheelers stay insured and incidents of setbacks, expired bike insurance plans, and uninsured vehicles are minimised. Two-wheelers are covered for five years by the new stand-alone long-term third-party bike insurance plans.
How Does a Long-Term Bike Insurance Policy Function?
Compared to a yearly policy, a five-year insurance plan intends to offer coverage for an extended period. The average cost of a five-year bike insurance is similar to a temporary policy. The main distinctions involve the cost of the policy and the duration of the bike insurance plan. Thus, a prolonged strategy is more profitable than a brief one.
Different Types of 5-Year Two-Wheeler Insurance Plans
Standalone Long-Term Third-Party Bike Insurance
Third-party bike insurance is mandatory for all bike riders as given by the law. Failure to buy the plan will cause penalties. This policy is designed to cover arrears similar to accidental death or injuries to other individuals and damage to their parcels like vehicles, crops, and walls during an accident with an insured vehicle. It's valid for only a time, but now with the standalone long-term third party bike insurance, you'll get the content for five times. A major drawback of this bike insurance is that it does not include Own Damage (OD) coverage. You also cannot tailor third-party liability coverage.
Comprehensive Bike Insurance
Third-party and own damage coverage, both, are provided under this policy. It covers third-party responsibility for five years and own damage for one year. As compared to a comprehensive bike insurance policy this policy is seen as much more useful. You also have the option to personalise this plan with added features.
Advantages of Choosing a 5-Year Bike Insurance Plan
By selecting a five-year bike insurance policy, the following advantages may be obtained:
Low Premium
The monthly cost of long-term two wheeler insurance is constantly lower than that of a short-term policy. Thus, it comes at a lower cost. You admit ongoing third-party liability content for 5 years, as well as short-term own damage cover.
No Claim Bonus
By not making any claims, you can get a significant discount on your comprehensive bike insurance policy. If you don’t raise a claim for five consecutive policy years, you can receive up to a 50% discount.
No Bike Insurance Challans
Riding a two wheeler without insurance is considered a violation in India, and you'll face penalties for doing so. Having a long-term policy allows you to ride the bike without any insurance-related forfeitures under your name.
Continuous Protection
Maintaining ongoing bike insurance coverage is essential for guaranteeing fiscal protection in case of bike damage and injuries. However, you're at risk of fiscal scores if the bike is damaged while the policy is inactive.
Your insurance company won't be able to help you if something goes wrong if you don't keep up with your coverage. If you have long-term two wheeler insurance, you will be covered for 5 years for injuries to other people and 1 year for damage to your bike.
How is NCB Calculated on a 5-Year Policy?
NCB (No Claim Bonus) only applies to the own damage part of your motorcycle insurance policy. Since you only bear a 1- year own-damage plan, the NCB computations will be the same as for a yearly comprehensive policy.
Considerations for Purchasing Two-Wheeler Insurance for Five Years
When you decide to get two-wheeler insurance, here are some things you should think about:
Bike Insurance Requirement
It is crucial to evaluate your bike insurance requirements prior to purchasing the policy. Choose a content option considering variables like the bike's age, machine relegation, where you live, how frequently you ride the bike, etc.
Risk Profile and Driving Habits
Depending on your level of risk, you should get two wheeler insurance accordingly. However, you should buy an each-round insurance rather than someone with a low-threat profile, if you're a parlous motorcycle rider. In this case, you could choose to enhance the introductory policy by opting for add-ons like zero depreciation bike insurance, which doesn't take into account the bike's depreciation during the claim agreement.
Bike Insurance Budget
Comprehensive bike insurance can be acclimatized to individual requirements. When purchasing it, you are granted the opportunity to select the Insured Declared Value (IDV) of the bike. However, do not conclude for an advanced IDV, If you have budget limitations. Purchase practical accessories that will be salutary for you. Exceeding the limit with a fresh point will raise the cost.
Deductibles
Deductibles for bike insurance might be either required or optional. Your bike insurance policy may be reduced by selecting the "ultimate" option. If you want to take responsibility for part of the cost when your insurance company pays out for repairs to your bike, you can choose a voluntary deductible.
Conclusion
Choosing a 5-year bike insurance policy ensures continuous financial protection and saves you the hassle of renewing it every year. Policyholders can feel fulfilled and secure by having a comprehensive scope for a long period. Organizing protections for bikes is basic to ensure monetary security and comply with the required necessity for two-wheeler proprietors.
Frequently Asked Questions
Is 3rd Party Insurance enough for a bike?
It is legally mandated; however, it does not provide coverage for bicycle damages.
Which insurance is mandatory for a two-wheeler?
All two-wheelers in India are required by law to have third-party insurance.
Is buying a 5-year policy mandatory for all types of bike insurance plans?
A 5-year third-party policy is mandatory for new bikes, but comprehensive insurance can be for 3 years.
Do I need to renew bike insurance every year if I buy a 5-year plan?
No, a 5-year policy eliminates the need for annual renewal.
How many years is bike insurance required?
A minimum of 5 years for third-party insurance on new bikes.
How much does bike insurance renewal cost?
Renewal costs vary based on bike type, insurer, and coverage.
Which bike insurance is mandatory?
Third-party bike insurance is mandatory as per the Motor Vehicles Act.
How many years can a two-wheeler be used?
A bike can be used for up to 15 years, after which a fitness certificate is required.
This blog is intended solely for educational and informational purposes. The content may include outdated information regarding the topic discussed. Readers are encouraged to confirm the accuracy and relevance of the data before making any significant decisions. SBI General Insurance disclaims responsibility for any errors or consequences arising from the use of outdated information provided herein.
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Benefits of Car Insurance
Owning a car is a matter of pride. A four-wheeler is an asset that needs to be protected. Hence, the need for car insurance arises. A car insurance policy is essentially a contract signed between you and the insurance company. Under this contract, the insurer offers you cover against any financial loss arising due to damage or theft of your insured vehicle. In exchange, you have to pay a small amount of money as premium at fixed intervals of time (usually every year). If you are still not convinced about buying a motor insurance policy, then take a look at some of the key benefits of car insurance to understand its need better:
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Types of Bike Insurance
A two–wheeler allows you to travel with a lot of freedom by facilitating easy traffic navigation and convenient parking. If you are a bike owner, you must opt for a correct bike insurance policy to protect your finances in case of any unforeseen circumstances. There are various types of bike insurance policies available in the market today. To help you choose, we’ll explain what each of these policy types can do for you. But first, let’s understand what bike insurance is.
What is Bike Insurance?
Navigating busy roads can expose your two–wheeler to risks and accidents. If an accident or collision occurs, it can cause severe injuries to people and damage your bike. A bike insurance plan covers you against the expenses you would otherwise face in paying for these damages and losses. As a policyholder, you are required to pay timely premiums in exchange for the insurance coverage offered.
What Are the Types of Bike Insurance?
The types of 2–wheeler insurance available are:
Third–party liability–only cover: According to the Motor Vehicles Act, 1988, a bike should mandatorily be insured for any liability that could arise due to loss or damage suffered by third parties in an accident caused by the insured bike. Thus, this type of bike insurance plan is popularly known as third–party bike insurance. Under this policy, if an accident is caused by the insured bike, then damage done to a third–party vehicle, or injuries and loss of life caused to a third–party, shall be reimbursed by the insurer.
Keep in mind that a third–party insurance policy does not cover own damages. In case of an accident, the damages to the insured vehicle would be borne by the owner under this policy. A personal accident cover is also a mandatory requirement for all motorists, and this has to be purchased with third–party insurance if the bike owner is already not covered under such a plan.
Standalone own damage cover: This is a type of two–wheeler insurance policy that covers damages caused to the insured bike. It covers the bike against natural calamities such as floods and earthquakes along with man–made calamities like theft. However, this policy does not cover third–party liabilities. You can buy a standalone own damage insurance policy along with the mandatory third–party insurance policy.
Comprehensive two–wheeler insurance: With a comprehensive two–wheeler insurance policy, you can avail a wider coverage. This type of policy is a combination of the own–damage cover for the insured bike and third–party insurance. You get covered against third–party claims and own damages in accidents, natural calamities, and manmade disasters. You can also opt to enhance your policy with add–on covers such as consumables cover, engine protection, and roadside assistance, among others.
For peace of mind on the road, buy bike insurance today. Before making the final decision, you must compare the coverage, policy options, and premium rates of bike insurance offered by different insurers. Also, check the credibility and reliability of the insurer beforehand. An insurance company with a proactive customer support team will help you avoid any inconvenience at a later stage.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.
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What Is Bike Insurance Claim Process?
India has one the highest number of two-wheelers in the world. Most two-wheeler owners are familiar with the idea of bike insurance as it is mandatory by law. Yet, surprisingly, the thought of filing a claim under the motor insurance policy sends jitters to many.
That’s because the bike insurance claim process is seen as a lengthy and complex procedure. Whereas, in reality, it is extremely straightforward and simple if you have all the relevant documents in place.
So, let us give you a detailed explanation of the two-wheeler insurance claim process to help you prepare for any such adverse situation that may arise in the future.
What is a Bike Insurance Claim?
A bike insurance claim is a formal demand made to the motor insurance company to compensate you for any expenses incurred due to damages to your vehicle arising out of theft or accident.
In fact, not just your vehicle, under a two-wheeler insurance procedure a claim can also be raised to demand compensation for property damage or personal injury related to a third party in case your bike caused a road mishap.
When it comes to the motor claim process, there are two types – cashless and reimbursement. The motor insurance claim process can be different for both types of claims. Let’s understand their meaning:
■ Cashless claim: In case your bike gets damaged after an accident and is taken for repair to an authorised garage, which is a part of the network of your insurance company, then you are eligible for cashless settlement of the claim. In a cashless settlement, your repair bill would be paid to the garage directly by your insurer without your involvement. It means you can just drive out of the garage without paying any penny if your claim is accepted and settled.
■ Reimbursement claim: If your bike is repaired at a garage that is not a part of the network of your insurance company, then you would have to settle all the bills yourself from your pocket. Later, you can ask your insurer for reimbursement of expenses by submitting the bills.
Documents required to file a claim
You can make the vehicle insurance claim process completely hassle-free and smooth if you collate all the required documents and bills carefully and submit them along with your claim form. Here’s a list of the key documents required for a bike insurance claim procedure:
■ Duly filled and signed claim form
■ Copy of the registration certificate (RC) of the insured bike.
■ Copy of the driving license of the owner/driver of the bike.
■ Copy of the insurance policy document.
■ Copy of FIR, where needed (in case of theft or third-party bike damage).
■ Repair bills and receipts.
■ Other documents as demanded by the insurer (based on specific situations).
Steps for two-wheeler insurance claim process
Here’s a step-by-step guide to help you understand the auto insurance claim process:
1. In case of a road accident, first, take note of the registration numbers of the other vehicles involved in the mishap.
2. Immediately intimate the insurance provider about the incident (theft or accident) and the upcoming claim. You can do this by calling on the customer care numbers of your insurance provider or by email or even at your insurer’s official website.
3. The insurance provider will ask for some basic details and provide you with a claim reference number for future correspondences. It will also guide you on the motor insurance claim procedure, document requirements and network garages.
4. You also need to visit the police station and file an FIR in case of theft or third-party claims.
5. Your insurer will then assign you an official inspector/surveyor who will examine the damage sustained by your bike. The surveyor may visit the location of the incident or your chosen garage.
6. Fill up and submit the claim form to your surveyor along with the required documents like driving license, RC book, police FIR, etc.
7. Based on the inspection of damages, the surveyor prepares a claim estimate and sends it to the insurer.
8. In the case of cashless settlements, the repair work starts at the network garage as soon as the insurer approves the claim estimate. After the repair is done, the insurer settles the final bill with the garage directly.
9. In case of reimbursements, you need to pay the garage yourself and then submit all the bills and receipts to the insurer later.
10. After due verification, the insurance company settles the claim usually within 30 days of receiving the last necessary document.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.
Motor Insurance
Bike insurance transfer to other person
One of the most common mistakes people make when they sell their bikes or two-wheelers is that they remember transferring ownership but forget to transfer the motor insurance policy to the buyer of the vehicle. Even those who remember are not aware of the process of how to transfer bike insurance from one person to another.
As a result, people sometimes just let the insurance policy be, thinking there will be no consequences. But that’s a myth. Not transferring the insurance policy to the new owner can lead to legal hassles for both the seller and the buyer and may also leave the bike without any insurance cover. Let’s see how.
What is bike insurance transfer?
Two-wheeler insurance transfer essentially refers to the process of transferring the insurance policy in the name of the new owner of the bike.
Once the two-wheeler insurance transfer is done, the bike insurance policy document should carry the name and details of the buyer of the vehicle and not that of the seller.
Under Section 157 of the Motor Vehicles Act, it is the responsibility of the buyer to apply to the insurance company requesting transfer of the bike insurance policy to his name. This application must be made within 14 days of buying the vehicle.
Remember that the two-wheeler insurance name transfer process can be initiated only after the bike ownership title has been transferred and the new RC book of the bike shows the name of the new owner.
If the new RC book is not yet available, the buyer can also submit the proof of transfer of ownership as a stop-gap arrangement. But he would have to compulsorily submit the new RC book to the insurer as soon as it is available.
Why should you transfer your bike insurance policy?
Transferring the bike insurance policy is very important both for the seller and buyer of the bike.
Suppose if the policy is not transferred, and the insured vehicle gets involved in a road accident, the insurance company would not clear even a single claim. That’s because the name on the policy document would not match the name of the new owner of the vehicle.
So, the buyer of the vehicle would have to bear all the expenses from his own pocket, whether it’s related to own damage or any third-party liability.
Not just the buyer, the seller can also land in trouble. In case of an accident, the court might get involved if both the insurer and/or the new owner of the bike refuses to pay any financial liabilities to the third party. Then, the court may also send notice to the seller to compensate for some of the losses incurred by the third party as the insurance policy still has his name on it.
Moreover, the seller also loses out on the no-claim bonus (NCB) earned on the bike insurance policy in case it is not transferred. NCB is a bonus you earn for not making any claim in the previous policy years.
For the seller, this bonus can translate into premium discounts on the insurance policy for his new bike. If the old policy is not transferred, the seller cannot avail the NCB certificate at all. Thus, the chances of getting discounts on any new insurance policy are lost.
Here’s how to transfer bike insurance from one person to another:
Now coming to the key part -- how to transfer two-wheeler insurance? Below is a step-by-step guide to help you through the process.
1. As soon as the transfer of ownership is done, the buyer needs to inform the insurance company about the same within the next 14 days and apply for bike insurance transfer.
2. As the new owner, you can also change to some other two-wheeler insurance plan by the insurer that suits your requirements better.
3. After you have chosen the new plan, fill up the proposal form giving details about the transfer of ownership of the bike.
4. The key documents that need to be submitted along with the proposal form include the new RC book of the bike or proof of transfer of ownership, original policy document, no-objection certificate from the previous policyholder, and address/identity proofs of the buyer along with some passport-sized photographs.
5. You should also submit Form 29/30/Sale deed along with the above-mentioned documents. Form 29 is the notice of transfer of ownership of a bike. This form notifies the Regional Transport Office (RTO) about the sale of the motorcycle. Whereas Form 30 is the report of transfer of ownership of the bike. It functions as the confirmation of Form 29.
6. After all the documents are submitted, the insurer will initiate the transfer process. In some cases, the insurance company might send an investigator to create an inspection report of the bike before the transfer is completed.
7. The buyer would need to pay a nominal transfer fee to transfer the policy in his name.
8. Once the fee is paid and everything is verified by the insurer, the policy would be transferred to the new owner of the bike.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.
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