IRDAI increases third-Party two-wheeler insurance


12 Jun 2023

New premium rates and revised guidelines for third-party two-wheeler insurance in India announced by IRDAI

The third-party insurance and its premium are regulated by the IRDAI in India. Recently they have announced new premium rates for third-party two-wheeler insurance. The last increase in the premium was seen three years back - in 2019 (just before the pandemic).

IRDAI revises the guidelines for two-wheeler insurance annually. However, due to the pandemic in 2019, the government stayed on the same premium for two consecutive years. Hence, the new rate was effective from April 2022.

What is a third-party two-wheeler insurance premium?

The third-party two-wheeler insurance premium is an amount you pay to the insurance provider in exchange for assurance to cover you from financial uncertainties in case of road accidents. In India, the premium rate is finalized by the IRDAI, and the insurance companies have to follow them. However, an insurance company can fix the premium rates of standalone own-damage insurance and comprehensive cover that has add-on cover and own-damage parts.

The IRDAI decides the premium rates based on the loss ratio of the bike insurance companies and the total number of claims raised by bike owners. Also, this is the first time that the Union Road Transport Ministry and IRDAI have together announced the new premium rates of third-party two-wheeler insurance.

What are the revised premium rates of third-party bike insurance?

According to the announcement by IRDAI. The following changes are seen in the premium rates for a single year -

Engine Capacity

Rates INR (2019-20)

Rates INR (2022-23)

Change %

Bikes with engine capacity of less than 75 cc




Bikes with engine capacity of between 75 cc and 150 cc




Bikes with engine capacity of between 150 cc and 350 cc




Bikes with engine capacity of more than 350 cc




As per the Indian Motor Vehicle Act, bike insurance is mandatory for 3-5 years. The change in the premium rates for long-term third-party bike insurance policies are -

Engine Capacity

Rates INR (2019-20)

Rates INR (2022-23)

Change %

Bikes with engine capacity of less than 75 cc




Bikes with engine capacity between 75 cc and 150 cc




Bikes with engine capacity of between 150 cc and 350 cc




Bikes with engine capacity of more than 350 cc




What are the features of third-party two-wheeler insurance?

The following are the features of a third-party bike insurance policy -

  • Third-party bike insurance is a mandatory cover for all bike owners as per the Motor vehicle Act 1988.

  • If a third party’s property or vehicle is damaged by your bike, they will be compensated.

  • If there is a death caused to a third party, the insurance company will cover their compensation or pay a lump-sum amount for the accident.


The third-party bike insurance premium rates in India depend on the add-ons and the comprehensive coverage opted for by you. You can check Kotak general insurance online to get the best deal.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.