Bajaj General Insurance offers two-wheeler insurance plans that cover third-party liability, theft, accidents, natural disasters, and fire. While third-party insurance is legally mandatory in India, a comprehensive policy provides full protection for your own bike as well. Key benefits include cashless repairs at 7,000+ network garages, quick claim settlement through app-based inspection, and add-ons like zero depreciation, engine protection, and roadside assistance. Choosing the right IDV and maintaining a No Claim Bonus can help reduce premiums while ensuring adequate coverage.
Owning a bike in India is rarely about luxury; it is about reclaiming time from congested city lanes and ensuring a predictable commute. Yet, the moment you wheel a new vehicle out of the showroom, you are exposed to a volatile mix of potholed roads, unpredictable monsoon flooding and the high statistical probability of a minor collision. A basic third-party cover satisfies the law, but it does little to protect your wallet when a repair bill for a premium fairing or a damaged engine arrives. Choosing the right two-wheeler insurance is the difference between a minor inconvenience and a significant financial setback. This guide clarifies how to structure your coverage to ensure your bike remains an asset rather than a liability.
Understanding the Types of Bike Insurance
Selecting a policy requires a clear distinction between what is mandatory and what is actually necessary for your peace of mind.
In India, under the Motor Vehicles Act, 1988, every vehicle on Indian roads must have at least a valid third-party liability insurance policy. The IRDAI regulates pricing and framework of such policies. While this handles your legal liabilities toward others, it leaves your own bike completely unprotected. For most riders, a Comprehensive Policy or a Standalone Own Damage (OD) cover is the logical choice, as these address theft, fire and accidental damage to your own vehicle.
Policy Type
Third-Party Liability
Fire & Theft
Accidental Damage
Personal Accident Cover
Third-Party Only
Covered
Not Covered
Not Covered
Mandatory Add-on
Comprehensive
Covered
Covered
Covered
Mandatory Add-on
Own Damage (OD)
Not Covered
Covered
Covered
Optional
Note: Own Damage policies can only be purchased if you already have an active Long-Term Third-Party cover, as per the multi-year mandates introduced in 2018.
As per regulatory norms, new two-wheelers are typically sold with a 5-year long-term third-party insurance policy, while own damage cover is renewed annually.
Bajaj General Two-Wheeler Insurance Inclusions & Exclusions
To make an informed decision on two-wheeler insurance, you must look past the premium amount and scrutinize the actual scope of protection. In the insurance world, the Inclusions and Exclusions define the utility of your policy during a crisis. Bajaj General insurance policies are governed by standard IRDAI guidelines, but they offer specific nuances in how they handle mechanical failures versus external accidents.
What is Covered?
A comprehensive policy acts as a broad financial net. It is designed to cover losses that are sudden, accidental and caused by external means. Whether it is a natural disaster or a human-led mishap, the goal is to restore your bike to its pre-accident condition.
Accidental External Damage: Covers the cost of repairs arising from road accidents, collisions, or if the vehicle falls over while parked.
Natural Calamities: Full protection against "Acts of God," including floods, earthquakes, cyclones, landslides and lightning strikes.
Man-Made Disasters: Coverage against theft, burglary, riots, strikes and malicious acts by third parties.
Fire and Explosion: Protection against damage caused by self-ignition, lightning, or external fire.
Transit Risks: Covers damage sustained while the bike is being transported by road, rail, inland waterway, or lift.
Third-Party Liability: Unlimited coverage for legal liability regarding death or injury to a third party and up to Rs. 1 lakh for third-party property damage.
What is Not Covered?
No insurance policy covers every possible scenario. Understanding these holes in the net helps you avoid claim rejection. Most rejections in India occur because the rider was unaware of these fundamental exclusions.
Normal Wear and Tear: General aging of the vehicle, such as the thinning of brake pads or tyres, is not covered.
Mechanical or Electrical Breakdown: If your bike refuses to start due to a battery failure or a circuit short-circuiting (without an external accident), the insurer is not liable.
Drunk Driving or Invalid License: This is a non-negotiable exclusion. If the rider is under the influence of alcohol/drugs or lacks a valid permanent/learner’s license, the claim is void.
Consequential Loss: Damage that happens after the initial accident (e.g., engine damage caused by trying to start a submerged bike) is excluded unless you have specific add-ons.
Commercial Usage: If a private bike is used for commercial courier services or ride-sharing apps without a commercial permit, claims will be denied.
Depreciation: Unless you buy bike insurance with a Zero-Depreciation add-on, the insurer will deduct the cost of depreciation on all replaced parts.
Feature
Included in Comprehensive
Included in Third-Party
Theft of Vehicle
Yes
No
Damage from Floods
Yes
No
Legal Liability to Others
Yes
Yes
Self-Damage (Accident)
Yes
No
Personal Accident (Owner)
Mandatory Add-on
Mandatory Add-on
Note: While Third-Party insurance is cheaper, it leaves you 100% liable for your own repair costs. For any bike with a resale value above Rs. 30,000, a Comprehensive plan is the recommended baseline.
The Mechanics of Insured Declared Value (IDV)
The most common mistake riders make when they buy bike insurance is failing to calibrate their IDV correctly.
The IDV is not the "market value" of your bike; it is the maximum sum insured that the insurer will pay in case of a total loss or theft. It is calculated based on the manufacturer’s listed selling price minus a fixed depreciation percentage based on the age of the vehicle. Setting the IDV too low reduces your premium but leaves you underinsured; setting it too high is a waste of money because the insurer will only pay the depreciated value at the time of the claim.
Standard Depreciation Schedule for IDV Calculation:
Up to 6 months: 5%
6 months to 1 year: 15%
1 year to 2 years: 20%
2 years to 3 years: 30%
3 years to 4 years: 40%
4 years to 5 years: 50%
Note: For vehicles older than 5 years, the IDV is mutually agreed upon between the insurer and the policyholder based on the vehicle's condition.
Why Bajaj General Two Wheeler Insurance Stands Out
Selecting an insurer is as much about the claims process as it is about the features of the policy itself.
Bajaj General Insurance is one of the leading private general insurers in India, with a wide claims network and digital claim servicing capabilities. Their infrastructure supports a "Cashless Claims" network of over 7,000+ garages across India. This means if you meet with an accident, you can take your bike to a network garage and the insurer settles the bill directly with the workshop, barring the mandatory deductible and depreciation on parts.
Motor On-The-Spot (Motor OTS) allows quick claim assessment for minor damages through photo-based inspection via the insurer’s app. This removes the traditional friction of waiting for a physical surveyor for small dents or broken indicators.
Essential Add-ons for Enhanced Bike Insurance Protection
Standard comprehensive plans have limitations, particularly regarding the depreciation of plastic, rubber and fiber parts during a claim.
If you own a premium motorcycle or a brand-new scooter, add-on covers are non-negotiable tools to bridge the gap between the repair cost and the payout.
Zero Depreciation Cover: This is the most popular add-on. Normally, insurers deduct 30-50% for plastic and rubber parts. With this cover, you receive the full value of the replaced parts.
Engine Protection Cover: Standard policies do not cover engine damage due to water ingression (hydrostatic lock) or oil leakage. Given the frequency of urban flooding in India, this is vital for expensive bikes.
24x7 Roadside Assistance: This covers towing, flat tyre repair and emergency fuel delivery. It is an invaluable service for long-distance tourers and daily commuters alike.
Consumables Cover: Covers the cost of items usually excluded from claims, such as engine oil, brake oil, nuts, bolts and washers.
Planning to renew or buy a new policy? You can compare real-time quotes and check policies on SMC Insurance to ensure you are getting the best value for your specific bike model.
The Claims Process: Step-by-Step
Filing a claim shouldn't be a secondary trauma after an accident; knowing the sequence of events ensures speed and accuracy.
The efficiency of your claim depends heavily on the first 24 hours following the incident. Whether it is a minor collision or a major theft, following the legal and procedural requirements is essential for approval.
Immediate Notification Call the Bajaj General toll-free number or use the app to register the claim. Do not move the vehicle from the spot unless instructed by the police or the insurer.
File an FIR (If Required) For theft, third-party property damage, or physical injury to others, a First Information Report (FIR) is mandatory.
Document Gathering Prepare your driving license, RC book, original policy document and the FIR copy.
Survey An internal or external surveyor will inspect the damage. For minor claims, the Motor OTS app-based survey is sufficient.
Settlement Once approved, the bike is repaired at a network garage (cashless) or a non-network garage (reimbursement).
Factors That Influence Your Premium
Understanding what drives your premium allows you to manipulate certain variables to lower your costs.
Your premium is not a random number; it is a calculated risk assessment based on several data points. While you cannot change your age or location, you can influence other factors.
Zone of Registration: India is divided into Zone A (Metros) and Zone B (Rest of India). Metros attract higher premiums due to higher traffic density.
Cubic Capacity (CC): The engine's power directly dictates the Third-Party premium rates set by the IRDAI. A 150cc bike will always be cheaper to insure than a 500cc motorcycle.
No Claim Bonus (NCB): This is a discount rewarded for a claim-free year. It starts at 20% and can go up to 50% over five consecutive years. It is tied to the rider, not the bike, meaning you can transfer your NCB to a new bike.
Anti-Theft Devices: Installing ARAI-approved anti-theft devices can earn you a small discount on the Own Damage premium.
Engine Capacity (CC)
Estimated TP Premium (Annual)
Not exceeding 75 cc
Rs. 538
75 cc to 150 cc
Rs. 714
150 cc to 350 cc
Rs. 1,366
Exceeding 350 cc
Rs. 2,804
Note: These are IRDAI-prescribed base third-party premium rates (latest applicable schedule). Rates are periodically reviewed by IRDAI and may change. Own Damage and GST are additional.
Wrapping Up
Securing your two-wheeler is about more than just checking a regulatory box; it is a calculated move to protect your mobility. A basic third-party policy is a legal necessity, but in a market where repair costs are rising and road conditions remain unpredictable, comprehensive coverage is the only real protection. By accurately setting your IDV, utilizing the No Claim Bonus and selecting critical add-ons like Zero Depreciation, you transform a simple insurance policy into a robust financial safety net. The goal is to ensure that when an accident happens, your focus remains on recovery, not the bill.
Disclaimer: The information provided on this platform is intended for general awareness and educational purposes. While every effort is made to ensure accuracy, some details may change with policy updates, regulatory revisions, or insurer-specific modifications. Readers should verify current terms and conditions directly with relevant insurers or through professional consultation before making any decision.
All views and analyses presented are based on publicly available data, internal research and other sources considered reliable at the time of writing. These do not constitute professional advice, recommendations, or guarantees of any product’s performance. Readers are encouraged to assess the information independently and seek qualified guidance suited to their individual requirements. Customers are advised to review official sales brochures, policy documents and disclosures before proceeding with any purchase or commitment.
FAQs
Yes, when you sell your bike, the insurance must be transferred to the new owner within 14 days of the sale. The new owner must provide the updated RC and pay a nominal transfer fee. However, the No Claim Bonus (NCB) remains with the original seller and can be used for their next vehicle.
If your policy lapses, you lose the legal protection and the No Claim Bonus (if it remains expired for more than 90 days). Additionally, the insurer will likely require a physical inspection of the bike before issuing a new policy, which could result in a higher premium if damages are found.
Yes, a Compulsory Personal Accident (CPA) cover of Rs. 15 lakh for the owner-driver is mandated by IRDAI. However, it is not required if the owner-driver already holds an existing CPA cover for another vehicle or a standalone personal accident policy and provides a valid declaration. However, if you already have a separate personal accident cover or a life insurance policy with a similar death/disability benefit, you may be eligible for a waiver, provided you have a valid driving license.
A comprehensive two-wheeler insurance policy covers "Natural Calamities" such as earthquakes, floods, typhoons and lightning. However, damage to the engine specifically due to water (hydrostatic lock) is usually an exclusion unless you have purchased the Engine Protection add-on.
Cashless claims allow you to get your bike repaired at an authorized network garage without paying the repair bill yourself. After the surveyor approves the estimate, Bajaj General pays the garage directly. You only pay for the compulsory deductible (Rs. 100 for bikes up to 150cc and Rs. 300 for bikes above 150cc) and any depreciation on parts not covered by add-ons.
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