Knowledge Centre

How to Calculate Bike Insurance Premium in India

Published on July 26, 2019. EST READ TIME: 5 MIN

Bike insurance or two wheeler insurance is an important means to protect your beloved vehicle safe from accidental damages. In India, it is a mandate to ride with a valid third party liability only policy. This policy covers you from damages caused by your bike to other person or property. If you are found riding without a valid third party liability only policy, you have to pay a penalty. While riding on road your vehicle is probable to much higher risks, such as accidental damage of own vehicle, personal accident, to cover all these contingencies, it’s essential to opt for Comprehensive Two Wheeler Insurance which insures all your worries.

A comprehensive bike insurance will cover own damage, personal accident and third party liability as well. Although the premium is slightly on a higher side as compared to third party liability only, but it’s always worth the spend. Let’s understand the factors that help in fixing up two wheeler insurance premium.

Mention about add on covers – Zero Depreciation & Emergency Assistance cover – Not a standard rating factor for both the covers it is subject to the insurance company. The below mentioned factors are for own damage section of comprehensive policies.

Factors affecting the premium calculation of two wheeler insurance

Type of Insurance cover

If you go by the formula which says higher the risks covered higher the premium and lower the risks covered lesser the premium, it is clearly understood that a third party liability only policy will insure you at a lower premium as compared to a comprehensive plan, which insures you against most of the probable risks.

Age of Vehicle &CC

Generally, vehicle will higher CC will incur higher premium and basic models would fetch lower premium. Similarly, if your vehicle is old the premium amount would be less as the IDV (Insured declared value) would be less as compared to a brand new vehicle.

Place of registration

Every insurance company has specific zones where the vulnerability of accidents is very high; at such zones either the insurance cover is denied or offered at a higher premium.


In case the insured declared value, which is the total value of your vehicle fixed by the insurance company and it pays that value at the time of total loss, theft or burglary.


In case you have a no claim bonus earned for your previous year policy, you get a discount for the current policy. This discount will thus reduce your premium amount.

Along with the above mentioned aspects, there are several other factors that are taken into consideration for fixing up the premium cost. Please note: For third party liability, premium is mostly decided by the regulatory authority. The premium for third party liability only policy is fixed on the basis on vehicle & cubic capacity (Private – 1000 cc).

How to calculate bike insurance premium?

To calculate bike insurance premium you have to feed in your data in the calculator and accept the terms and conditions to proceed. On the basis of the data filled by you, the online bike insurance calculator makes mathematical calculations to fetch the premium amount.

The above mentioned factors fix the premium, so a possible car insurance premium increase could be due to many reasons. However, it is always advisable to go by the list of coverage and service benefits before buying a motor insurance policy. Paying a little higher premium for a wide range of coverage will definitely benefit you in the long run.

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process".

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