A Few Points on Insurance Policy For Two Wheelers

India Motor Tariff governs Two Wheeler Insurance in India. It applies to all motorized Two Wheelers.

There are two types of policies: Act only Policy or Package Policy. Act only policy covers third party liability ( death/injury / Third-party property damage ), and Personal Accident coverage to the owner. The package policy covers damage or loss to the vehicle and its accessories in addition to the Act Policy. The premium charged is dependent on the following factors:

  1. The vehicle’s value
  2. Cubic Capacity of Vehicle (not exceeding 150cc/exceeding 150 cc, but not exceeding 350cc/exceeding 350cc)
  3. Age of the vehicle (not exceeding 5 years, exceeding 5 year but not exceeding 10 or exceeding 10 years)
  4. Geographical Zone(s), in which the vehicle has been registered

Rest of India

The proposal form must be filled out by the Registered Owner of the vehicle. It will include all details about the vehicle as well as basic information such/regarding his name and address. On payment of a premium, the owner can choose to add these additional covers.

  1. Accessories, electrical, and electronic fittings
  2. RTA permits CNG/LPG kits
  3. Liability for drivers/cleaners who are paid
  4. Employees (of the Insured) responsible for the use of the vehicle
  5. Use in/for rallies, motor racing and speed testing organized through recognized motoring agencies
  6. Use for Driving School tuitions that are recognized by RTA
  7. Personal accident coverage for the owner/insured (if he holds a valid driving license ).


  1. The vehicle comes with a sidecar
  2. The vehicle is equipped with an anti-theft device (s).
  3. The owner is a member in good standing of an Automobile Association
  4. The vehicle can be modified or designed for blind, handicapped, and mentally disabled persons (if appropriate endorsement is given in the RC-RTA).
  5. The insured has not chosen any vehicle damage claim (No Claim Discount)
  6. If the Insured agrees that an additional amount (Rs.500 – Rs.3000) will be paid as a deductible in the case of an own-damage claim (Voluntary deductible),

Limits of liability of the Insurer

OWN DAMAGE Claims (Partial damages to an insured vehicle due to accident, fire, strike or riot, earthquake and flood, while in transit by road/air, rail, inland watersway, lift, elevator) Cost of materials, labour (including Towing charges), as determined by a qualified surveyor appointed to the Insurer.

  1. Compulsory Excess Rs.50 Per Accident
  2. Voluntary Deductible as agreed by the Insured
  3. The depreciation rate for rubber parts will be 50%, fiber parts 30%, and other parts 5 to 50%, respectively, for parts to be replaced. Glass parts are permitted in their entirety, with no depreciation.

If the vehicle is total damaged (theft, or from causes mentioned above), the Declared Value of Vehicle (the declared value of the vehicle as per the policy) will be paid.

The Insurer will pay the award made by the Motor Accident Claims Tribunal for THIRD PARTY Claims. This includes claims for injury or death. The award determined by the MACT for Third Party Property Claims will be fulfilled, subject to a maximum amount of Rs.100000 ( if Insured hasn’t chosen to limit the TPPD Limit at Rs.6000 ).

The policy requires that the Insured use the vehicle in accordance with the policies terms. If he does not, he will be responsible for any liability (Own Damage or Third Party) incurred. The diligent Insured must be vigilant both before and after taking out policy.

  1. It is important that he carefully fill out the Proposal form, as any inaccuracy or false answer could be used against him in the case of a claim.
  2. The vehicle shouldn’t be used unless it has insurance.
  3. It is prohibited to transport goods (except for samples).
  4. It is against the law to use a vehicle for hire or as a reward.
  5. A valid driving license is required for the rider.
  6. The vehicle should not ever be used for speed testing or racing, pace making, reliability tests, or teaching driving lessons (unless additional coverage has been purchased).

The Insured would have no worries if he renewed his vehicle insurance policy without any break in coverage and used the vehicle according to the terms and conditions of that policy.