Two Wheeler Insurance
General
Buy Long Term Two-Wheeler Insurance for 3 Years Online
If you possess a two-wheeler, you must be well aware that as per the Motor Vehicle Act 1988, third-party bike insurance is mandatory in India.
But here comes the caveat!
In India, about 75% of the total number of two-wheelers on the road DO NOT have any valid insurance cover. Shocking, right? Well, considering the fact that most riders overlook the significance of insuring their bike when rolling the vehicle out of the showroom, these figures are not that surprising.
However, to address the issue of non-renewal of policies, insurance providers across the country have introduced multi-year or long-term two-wheeler insurance policies. At first, these multi-year insurance policies were launched for a term of 3 years. Now, they can also be extended for up to 5 years.
Below is an elaboration on the benefits of purchasing two-wheeler third-party insurance for 3 years and why it is advisable for you to do so.
Table of Contents
What is Long Term Two-Wheeler Insurance for 3 years?
A long term two-wheeler insurance frees vehicle-owners from the necessity of renewing their insurance policy every year, as it insures your two-wheeler in unfortunate events for up to 3 or 5 years.
The Insurance Regulatory and Development Authority (IRDA) has extended this facility of multi-year insurance policies for standalone third-party liability plan and the ones combined with own damage plan for two-wheelers.
What Does this Mean?
This means that you can avail two-wheeler third party insurance in a bundled bike insurance policy, including 5 years of third-party liability cover + 1 year of own damage cover (5 TP + 1 OD).
As for long term comprehensive bike insurance, these are available only for two-wheelers that have been purchased after 1st September 2019.
Types of Multi-Year Bike Insurance Policies
Here are types of long-term bike insurance policies available in India:
Long-Term Third-Party Policy
Long term two-wheeler third party insurance for bikes protects your newly bought vehicle against third-party liabilities for up to 5 years, including own damage cover for 1 year, implying that damage to your own bike is also covered for a year. This law was effective from 1st August 2020.
Long-Term Comprehensive Policy
As the name suggests, the long-term comprehensive policy offers financial protection against damage to your two-wheeler and third-party liabilities for up to 3 years. However, it is available only for two-wheelers purchased after 1st September 2019.
Long-Term Own Damage Policy
On December 7, 2022, IRDAI proposed to introduce Long-term Own Damage cover such that its policy period is the same as the Third-party Liability cover. This allows policyholders to buy insurance for multiple years in one transaction.
Is Long Term 5 Year Bike Insurance Mandatory for New Two-Wheelers?
Yes, in India, it is mandatory to have a 5-year third-party bike insurance policy if you have purchased a new two-wheeler. This bundled two-wheeler insurance plan includes a 5-year third-party liability plan and a 1-year own damage cover (5 TP + 1 OD). This plan was implemented by IRDAI starting August 1, 2020.
However, some insurance companies also offer two-wheeler third party insurance for 3 years. Also, if you have purchased a new two-wheeler and you want to opt for comprehensive bike insurance policy, then the long-term bike insurance policy will be of 3 years instead of 5 years.
Features of Three-Year Bike Insurance
A three-year bike insurance plan comes with several features that make it an attractive option for vehicle owners, such as:
Longer Validity
Two-wheeler third party insurance for 3 years provides extended coverage, so, there is now no need for you to do two-wheeler insurance renewal for 3 years, thus, ensuring continuous protection.
Cost-Effective
It is generally more cost effective than renewing a bike insurance policy annually as it protects against yearly premium hikes and also because insurance companies often offer discounts on 3-year bike insurance prices.
Stable Premiums
With a long-term insurance plan, the premium also remains unchanged for the entire duration of the policy, ensuring financial stability.
Convenience
Since you do not have to do two-wheeler insurance renewal for 3 years you save time and effort, making it a hassle-free choice.
How Does Long Term Bike Insurance Work?
The 2-wheeler insurance for 3 years policy is like any standard motor insurance policy with extended policy term. In long term bike insurance policy, your vehicle is covered by comprehensive coverage for 3 years. However, if you get a third-party liability plan, your vehicle will be covered for 5 years with own-damage coverage for 1 year.
This type of extended coverage plan for your two-wheeler eliminates the need for annual renewals and offers advantages in cost savings.
Benefits of Long-Term Bike Insurance for 3-Years
The two-wheeler insurance for 3 years offers several benefits over the regular ones, such as:
1. Avoiding Non-Renewal Implications
The period between the lapse of your bike insurance policy and its renewal can expose you to several risks. For example, a hefty fine due to traffic violation as well as financial liabilities from any accident during the period can lead to huge losses.
By having a two-wheeler third party insurance for 3 years, you can reduce these risks to quite an extent, at least for 3 years of the policy term.
2. Convenience
In most cases, two-wheeler owners forget about renewing their insurance policies after their 1-year policies have expired. With the 3-year plans, you can actually forget about two-wheeler insurance renewal for 3 years without repercussions.
That is why these plans are much more convenient because they curb the necessity of renewing your third-party insurance policy annually.
3. Less Expensive in the Long Run
With a three-year bike insurance policy, you will have to make the premium payment for 3 years at once. But in lieu of this lumpsum expense, you will be saving quite a lot on your premium payments, in the long run.
This is because insurance providers revise and impose a hike on the premium rates for their insurance policies annually. Due to inflation, this hike in premium rates can go up to 10-15%.
If you have a 3-year policy in place, you can save yourself from paying higher premiums until the time the policy expires. This way, your policy becomes a lot cheaper in the long run.
4. Avail High IDV
The Insured Declared Value or IDV of bike is the total sum assured promised by an insurer against total loss of a vehicle.
IDV is given by = the manufacturer’s registered price – the vehicle’s depreciation. The value is revised when you renew your insurance policy by taking your two-wheeler’s depreciation into account.
Now, when you avail a 3-year insurance policy, your IDV remains unchanged for the term of those three years, allowing you to avail a higher sum assured against total loss of your vehicle.
5. High No Claim Bonus
No Claim Bonus or NCB in bike insurance is the discount you can avail on the premium paid for your insurance policy if you have not made any claims in the previous year.
With three-year two-wheeler insurance policies, you can enjoy an advantage on your No Claim Bonus over single-year policies.
For example, if you have a 20% NCB from your previous policy when you avail a 3-year policy, this 20% NCB will be applicable on the premium you pay for all 3 years.
Further, few insurance providers also offer a higher NCB at the end of their long-term policies as compared to single year policies to boost the policyholders’ incentives in this regard.
6. Lucrative Discounts
In an effort to urge more two-wheeler owners to consider long-term insurance policies, insurance companies offer attractive discounts on the same. These discounts can make availing the insurance cover quite advantageous for vehicle owners.
7. Break-In Policy for Insurance Renewal
Sometimes a gap between your insurance renewals can warrant an inspection of your two-wheeler from insurance providers before they agree to do your bike insurance renewal for 3 years. This is known as a break-in policy and can subsequently lead to higher premium payment.
When you avail a 3-year long term insurance policy, you can avoid break-ins with your policy and subsequently carry on without any extra addition to your premium.
With such benefits and more, these multi-year two-wheeler insurance policies are a much better option when it comes to safeguarding yourself from unforeseen financial risks involving your two-wheeler.
Why Customers Trust Digit Two-Wheeler Insurance?
8 Lacs+
Claims Settled
1000 Crore+
Paid-in Claims
96% Claims Settled
FY'25
9000+
Cashless Garages
Disclaimer: This count is for total number of claims settled for two wheeler policies since inception till 31st December-2024. This amount is for claims settled for two wheeler policies since inception till 31st December-2024. This Claim Settlement Ratio is calculated for Overall Motor line of business of Digit. CSR Is calculated for FY 24-25. CSR Ratio is count of (Claims paid + Claims Closed) / (Claims O/S at Start + Claims Reported - Claims O/S at End). The total count of network garages as of 31st December 2024.
Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25
Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25
When it came to motor insurance specifically, Digit showcased a high-efficiency Claims Settlement Ratio (CSR), with 96% of motor claims settled seamlessly and we make this simple with:
Smartphone-enabled self-inspection process, with which you can file your claim in minutes!
Cashless Claims at over 9000+ garages in India, so you can get your two-wheeler fixed without stress.
Everything digital and paperless. No need for hard copies—just upload everything on our app, and you're all set!
Interesting Insights & Claim Stories of Digit Customers
A Digit Two Wheler Insurance customer received a total loss claim of ₹3.22 Lakh in Bengaluru
In a recent case from Bengaluru, one of our policyholders experienced a total loss after their two-wheeler was severely damaged. Fortunately, the vehicle was insured, and we processed a claim payout of ₹3.22 lakh. This case highlights the importance of having dependable insurance coverage to stay prepared for life’s unexpected turns.
Digit Settled a third party claim worth 1.12 crores in Hoshiarpur, Punjab
In a recent case from Hoshiarpur, one of our policyholders was involved in a two-wheeler accident that tragically resulted in a third-party fatality. In this case, the vehicle was covered under a valid third-party insurance policy, and we processed a claim payout of ₹1.12 crore to address the resulting liability. This case highlights the vital role third-party insurance plays—even for smaller vehicles like two-wheelers—in offering essential protection during unforeseen events.
Rat Attacks on Two Wheelers on the Rise
In Surat, a bike owner faced an unusual problem—rats chewed through the wire harness not once, but twice in a single year, all while the vehicle was parked safely at home! Thankfully, the insurance policy included coverage for such unexpected damages. Both times, the repair costs were fully covered, saving the owner from out-of-pocket expenses.
This case proves that insurance isn’t just for accidents or theft—it also protects against the most unexpected (and smallest) threats.
From Everyday Drives to Luxury Rides – Digit is the Trusted Insurance Choice
This year, we received some standout premium payments across different vehicle types. A Ferrari topped the list in the four-wheeler category with a premium of ₹8.04 lakh. In the two-wheeler segment, a Hayabusa was insured with a premium of ₹44,000. And in the commercial vehicle category, a Volvo L150 wheel loader was covered with a premium of ₹3.53 lakh. This highlights how our insurance scales to match the value and purpose of every vehicle, whether it’s built for speed, style or strength.
What’s Covered in 3-Year Bike Insurance Policy by Digit?
Accidents
Damages and losses that may arise due to an accident or collision
Theft
Covers for your losses in case your two-wheeler is unfortunately stolen!
Fire
Damages and losses to your two-wheeler in case of an accidental fire!
Natural Disasters
Damages caused to your two-wheeler due to nature’s many furies, such as due to floods, cyclones, etc.
Personal Accident
Covers for your expenses in cases where you’ve hurt yourself too bad!
Third Party Losses
When a person, a vehicle or a property is hurt or damaged due to your bike's actions.
What’s Not Covered?
It is equally important to know what’s not covered in your two-wheeler insurance policy, so that there are no surprises when you make a claim. Here are some such situations:
Own Damages for Third-Party Policy holder
In the case of a Third-Party or Liability Only Bike Policy, damages to own vehicle won’t be covered.
Drunk Riding or without a Licence
Your bike insurance won’t cover for you in situations where you were riding drunk or without a valid two-wheeler licence.
Driving without a valid Driving Licence holder
If you hold a learner’s licence and were riding your two-wheeler without a valid licence-holder on the pillion seat- then your claim in those situations won’t be covered.
Consequential Damages
Any damage which is not a direct result of the accident (e.g. after an accident, if the damaged two-wheeler is being used incorrectly and the engine gets damaged, it is considered as consequential damage and it will not be covered)
Contributory Negligences
Any contributory negligence(e.g. damage due to driving a two-wheeler in a flood, which is not recommended as per the manufacturer’s driving manual, will not be covered)
Add-ons not Bought
Some situations are covered in add-ons. If you haven’t bought those add-ons, the corresponding situations will not be covered.
Add-On Covers with Digit Long-Term Bike Insurance
Two wheeler insurance add-ons which you can buy with your Two Wheeler insurance policy
Zero Depreciation Cover
Think of it like an effective anti-ageing cream for your bike and its parts. Usually, the required depreciation amount is always taken in account during claims. However, a zero-depreciation cover ensures no depreciation is taken into consideration, so you get the full value of the cost of repair/replacement during claims.
Return to Invoice Cover
If you fall into a situation where your bike is stolen or damages beyond repair, this add-on comes in handy. With return to invoice add-on, we will cover the costs of getting you the same, or similar bike- including the road tax and registration fees for the same
Engine & Gear-box Protection Cover
Do you know that the cost of replacing your engine is approximately 40% of its cost? In a standard two-wheeler insurance policy, only damages caused during the accident are covered. However, with the engine and gear-box protection add-on cover, you can specifically cover the life of your vehicle (the engine and gearbox!) for any consequential damages caused post the accident. This could happen due to water regression, leakage of lubricating oil, and undercarriage damages.
Consumable Cover
The add-on of consumable cover adds an additional shield to your two-wheeler. Covers the cost for all your bike’s nitty-gritties such as the engine oils, screws, nuts and bolts, grease, etc. in the event of an accident.
Breakdown Assistance
The roadside assistance add-on ensures we’ll always be there for you and your two-wheeler in case of any breakdowns. The best part? Asking for our help doesn’t even count as a claim.
Tyre Protect
The tyre protect add-on cover is offered only to vehicles fitted with run flat technology. As part of it, the cost of replacing damaged tyres with equivalent or near equivalent to the one being used in the vehicle, labour and wheel balancing charges can be reimbursed. However, claims made under the add-on cover is subject to conditions set forth under the vehicle insurance policy.
Daily Conveyance Benefit
The add-on cover of daily conveyance benefit will ensure that you are compensated for your transportation cost during the period when two-wheeler is under repair subject to applicable time excess. A policyholder can be compensated in the form of fixed allowance per day or coupons from taxi operators from an amount equal to per day fixed allowance.
EV Shield Add-on Cover
This EV Shield add-on cover for electric two wheeler in India will protect you and your vehicle against any loss or damage to the electrical panel for the vehicle charging point, vehicle charger including charging cable, and offer roadside assistance services specific to EVs.
What is the Bike Insurance Premium for 3 Years?
The 3-year bike insurance price is calculated as three times the annual third-party premium payment. You will have to make this payment in a single instalment. You should remember the following:
- This premium amount cannot be negotiated or revised during the entire 3-year policy duration.
- If you have standalone long term two-wheeler insurance, it cannot be cancelled during the policy-term (except in case of the total loss of vehicle). In the case of the total loss of vehicle, the premium paid for unexpired years will be refunded.
This premium payment system is especially beneficial for policyholders because it saves them from the annual premium rate hikes imposed by insurance providers.
On the flip side, it is also advantageous for insurance providers as it allows them to collect the premium for 3 years at one go, allowing them to save on administrative charges.
Premium Calculation for Long Term Two-Wheeler (3-Year Insurance Plan)
Here is the 3-year bike insurance price in India:
Premium Calculation for Long-Term New Two-Wheeler (5 -Year Single Premium Policy)
Here is the 5-year third-party bike insurance price in India if you choose the single premium plan. You can also calculate the same using two-wheeler insurance premium calculator online.
Premium Calculation for Long Term New EV Two-Wheeler (5 -Year Single Premium Policy)
Here is the third-party premium price for new electric bikes with a 5-year single premium policy.
Since most of the leading insurance providers in India have welcomed this move of IRDAI with regards to the implementation of long-term insurance covers, you can avail several options of the same to choose from.
So quit stalling! Get your two-wheeler insured under a long term bike insurance policy today!
How is Depreciation Calculated in Long-Term Bike Insurance?
The Insured Declared Value or IDV of the two-wheeler is adjusted for depreciation value of your bike as per the below table.
In the table, age-wise depreciation is applicable for only Total Loss/Constructive Total Loss (TL/CTL) claims.
How is NCB Calculated on Long-Term Bike Insurance Policy?
For 3 years bike insurance policy, NCB will only be calculated for the Own Damage (OD) component of the bike insurance policy, as it is renewed annually. So, the NCB calculations will be same as that of the annual standard bike insurance policy.
Here’s how NCB is calculated for a 5+1 years bike insurance policy.
Factors Affecting 3-Year Bike Insurance Premium
The following things affect the 3-year bike insurance price:
Engine Capacity or CC
Bikes with higher cc generally have higher premiums.
Insured Declared Value (IDV)
The IDV is the current market value of the bike, and it directly affects the 3-year bike insurance price at the time of claim as a higher IDV will lead to higher premiums.
Bike's Age and Model
Newer and more expensive bike models generally have higher premiums as their bike parts are more expensive.
Location
The city or area in which you ride your bike also determines the 3-year bike insurance price. Areas with higher traffic or theft rates attract higher premiums.
Add-ons
Opting for add-ons with a long-term comprehensive bike insurance policy will also increase the insurance premium as add-ons are available at an additional amount, over and above the premium amount.
No Claim Bonus
If you have not filed for any claims in the previous bike insurance policy period, then you will be rewarded with a discount on your bike insurance renewal premium price through the No Claim Bonus (NCB).
Long Term vs Regular Bike Insurance Policy
If you’re confused which is the most suitable for you - long-term bike insurance policy or standard insurance plan, then this table is for you:
How to Buy Long Term Bike Insurance with Digit?
- Step 1: On the Digit app or website, enter bike’s registration number, select the policy status and click on ‘View Prices’.
- Step 2: Select the 3-years two-wheeler insurance plan, add-ons and click on ‘Continue.’
- Step 3: Enter your personal, nominee and vehicle details and click on ‘Pay Now.’
- Step 4: Complete the payment and mandatory KYC verification process.
- Step 5: You’re done! You’ll receive the policy document via email, SMS and WhatsApp. Also, you can access it 24X7 on the Digit App.
Documents Required to Buy Long Term Two-Wheeler Insurance Online
To buy Digit bike insurance online for 3 years, furnish only the following documents to buy the policy within minutes:
- Bike Registration Certificate
- Previous year two-wheeler insurance policy, if applicable
- Any of these documents for KYC verification - PAN/Aadhar/DL/Voter id/Form 16/Passport
How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter?
How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter?
At Digit, we believe filing a motor insurance claim should be simple, not stressful. That’s why we’ve built intelligent automation into every step of the process—so you can get back on the road, faster.
- AI That Sees What You See: When you upload a video of the damage through our app, our AI doesn’t just watch—it analyses. Using advanced image recognition, it assesses the extent of the damage, classifies it, and helps determine the next steps. This means quicker evaluations, fewer delays, and a smoother experience for you.
- Automated Document Processing: From inspection reports to claim forms, our AI systems automatically sort and process your documents. This reduces manual effort, minimises errors, and speeds up approvals. And with a human-in-the-loop approach, we ensure every claim is handled with both precision and empathy.
- Automation That Works Behind the Scenes: Our systems also fetch claim details directly from partner platforms, eliminating the need for repetitive data entry. Whether it’s Bulk Policy Issuance or real-time claim registration, automation helps us move faster—so you don’t have to wait.
73% Two Wheeler Repair Work Approvals done within 12 hours
73% Two Wheeler Repair Work Approvals done within 12 hours
- In H2 FY25, our average two-wheeler repair approval time was 14 hours and 32 minutes, with 73% of approvals completed within 12 hours. Only a few cases experienced longer wait times, typically due to complex assessments or the need for additional documentation, highlighting our commitment to minimising delays and maximising efficiency.
- Rest assured, we carefully monitor every step to ensure your two-wheeler is back on the road as swiftly as possible!
Digit Settled 9.16 Lakh Claims with 99.9950% Accuracy in FY'25
The below data is for all the products as given in the table below.
Settled 9.16 Lakh Claims Settled
That’s how many times we showed up for our customers in FY 2024–25. Behind each of those numbers is a mishap, and we were right there, making sure things got sorted quickly.
Out of these, nearly ₹6.52 lakh were motor insurance claims alone—proof that we’re there when it matters most, whether it’s something trivial or serious.
₹4,622 Crore Paid in Claims
From minor hiccups to major emergencies, we made sure our customers didn’t have to carry the financial burden alone. Quick settlements, zero confusion, and real peace of mind.
Of this, ₹2,199 crore was paid out under motor insurance, covering everything from accidents to unexpected situations like rat damage.
99.9950% Claims Accuracy
Out of 9.16 lakh claims in FY 2024–25, only 256 were escalated to the Hon’ble Ombudsman^. Out of which only 46# were escalated and ruled in favour of the customer. This significantly proves the claim's accuracy rate of 99.9950%.
For Motor Claims, out of 256 escalated claims for Digit, just 124 were motor-related. By year-end, 104 motor claims were closed, with 28 resolved through mediation. Only 26 health claim decisions went in favour of customers.
Ombudsman Complaints for FY 2024-25
The below information is a summary of escalated claim cases reviewed by the Hon’ble Ombudsman in FY 2024–25.
Disclaimer: ^This data pertains to cases reported to various offices of the Hon’ble Insurance Ombudsman. Customers have the option to approach the Consumer forum as well; #Only includes complaints arising from claims. The company had a total of 11 complaints arising from non-claims, i.e., policy-related grievances (5 won, 2 settled, 1 lost, and 3 outstanding). One non-claim complaint where the decision went in favour of the complainant is not included in the numerator while calculating claims accuracy.
Things to Consider Before Buying Two-Wheeler Insurance for 3 Years
Before purchasing a 3-year two-wheeler insurance policy, consider the following factors:
- Coverage Type: Decide whether you need third-party liability coverage or a comprehensive policy as per your needs.
- Determine Your Budget: Customise your vehicle’s IDV as per your budget and opt for add-ons accordingly as well.
- Compare Premium Costs: Compare bike insurance premium quotes from different insurers online to get the best deal.
- Policy Terms: Read the long-term bike insurance policy document carefully beforehand to avoid any discrepancy and confusion at the time of claim.
FAQs about Two-Wheeler Insurance for 3 Years
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