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​Buying your dream bike is a great feeling. But you have to take care of it if you want it to be with you for a longer time. Insuring your bike with bike insurance is the best thing that you can do for your bike.  However, there are certain rules and regulations that you need to know about before you buy the policy. IRDAI or Insurance Regulatory and Development Authority of India is governing authority when it comes to the insurance sector in the country. It is compulsory for both insurers and the insured to follow the rules and regulations set-up by IRDAI. IRDAI has set certain rules that insurance providers need to follow, as this regulatory authority wants to grow the insurance sector in the country. Given below are some of the guidelines that have been set by IRDAI regarding two wheeler insurance that includes motorcycles and scooters:

Cover For Personal Accident

  • The insurer has to compensate insured based on the severity of the bodily injury that the insured has claimed.
  • Insurance providers should compensate 100% in case of death. If there is any specific condition regarding this, it should be mentioned in the policy's documents.
  • If the insured lost his/her one limb or eye, the insurer has to provide 50% compensation.
  • If the policyholder faces any bodily injury that can cause complete or permanent disablement, then the insurer has to give a 100% compensation amount.


IRDAI has made some exclusions regarding the compensation eligibility of two wheeler insurance​. Given below are the circumstances in which insured can't make any claim:

  • Accident happens while the driver/ insured was intoxicated.
  • Normal wear and tear.
  • If insured is riding without an authorized license, or if someone younger than 18 years old is riding the bike.
  • If the insured bike is used for commercial activities.

Other reasons of not getting compensation can be expired policy, staged accident, electrical or mechanical failure, and much more.

Documents That Insured Need To Carry All The Time

  • Copy or original of Pollution Under Control (PUC)
  • Certification of Insurance
  • Authorised Driving License
  • Vehicle registration copy

Insured Declared Value (IDV)

IDV or Insured Declared Value is one of the most important factors that decide the sum insured. Now, you will ask how IDV is calculated. Well, its calculation depends on the market value of the bike. Not only this, but the rate of depreciation also impacts the IDV. You should know that the IDV of a vehicle helps in the calculation of total loss.

Rate Of Depreciation

You can read on the official site of IRDAI, as they have clearly defined why depreciation rates are important in the case of claiming your insurance. In layman's term, older the bike, lesser will be the claim amount. If your bike is less than six months old, then the depreciation rate is 5%. If your bike is older than 6 months but younger than one year, its rate of depreciation increases to 15%. After completion of one year, it goes up to 20%.

You should keep above mentioned IRDAI guidelines in mind when you buy bike insurance. ​