Since a 2018 Supreme Court order, every new two-wheeler in India is sold with a mandatory 5-year third-party policy. This guide explains why long-term bike insurance became compulsory, how cover is structured for new bikes, the pros and cons of locking in your premium, and who benefits most.
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On 1 September 2018, the Supreme Court of India directed that all new two-wheelers be covered by a 5-year third-party insurance policy from the date of registration. The order responded to the huge number of uninsured bikes on Indian roads — often the result of missed annual renewals. By collecting a 5-year TP premium at the point of sale, the court ensured third-party cover stays in force for at least the first five years of a new bike's life.
Since then, a new two-wheeler carries one 5-year TP policy (mandatory, paid upfront) plus one 1-year own-damage policy (optional but strongly recommended). The two are legally separate. The own-damage policy is renewed annually, and you are free to switch own-damage insurer each year — your 5-year TP continues uninterrupted with the original insurer. This separation, formalised by IRDAI's standalone own-damage rules from 2019, gives you flexibility to shop for the best rate. Compare current TP premium rates to see what you are locking in.
Some insurers offer 2- or 3-year own-damage policies. Unlike TP, multi-year own-damage is optional and locks you in — you lose the ability to switch insurer if service is poor or a better rate appears. Most experts prefer annual own-damage renewal for its flexibility, since NCB (up to 50% after five claim-free years) transfers freely when you switch. For the wider picture read the two-wheeler insurance guide, and know the claim process before you need it.
No. The 5-year TP policy is mandatory for new two-wheelers under the 2018 Supreme Court directive, and dealers must ensure the vehicle is covered before delivery. However, you can choose your own insurer for own-damage cover — you are not required to buy it from the dealer's insurer.
The TP policy is linked to the vehicle (RC), not the owner, so it transfers with the bike to the new owner, who benefits from the remaining cover. You do not get a refund for the unused years. The buyer should verify TP status through the insurer or VAHAN portal.
Buy a new TP policy immediately. Provide the bike's RC to any IRDAI-registered insurer and purchase a fresh annual or multi-year TP policy. Most insurers require a self-declaration or inspection that the bike is roadworthy. Do not ride until the new policy is active.
Yes. Own-damage and TP policies are separate legal contracts, and IRDAI has permitted standalone own-damage policies since September 2019. You can hold TP with the original insurer from the 5-year purchase and renew own-damage with any insurer of your choice.
Yes. No Claim Bonus belongs to the policyholder, not the insurer. On switching, you get an NCB transfer certificate from your existing insurer and present it to the new one, who must honour the discount — up to 50% after five consecutive claim-free years.