Two-Wheeler Third-Party Insurance Premium Rates in India (2024-25)

IRDAI sets fixed third-party insurance premiums for all two-wheelers - every insurer must charge exactly these rates. Here are the current rates and what they cover.

May 20264 min read

Key Takeaways

1Third-party (TP) insurance is mandatory for all two-wheelers under the Motor Vehicles Act, 1988.
2IRDAI fixes TP premium rates by engine capacity - all insurers charge identical TP rates.
3For 2024-25: up to 75cc = ₹538/year; 75–150cc = ₹714/year; 150–350cc = ₹1,366/year; above 350cc = ₹2,804/year.
4Electric two-wheelers pay a flat rate based on motor wattage bands, distinct from petrol engine capacity bands.
5TP insurance does not cover your own bike's damage - only third-party injury, death, and property damage.

Why IRDAI Fixes Two-Wheeler TP Premium Rates

Third-party insurance is a social obligation mandated by Section 146 of the Motor Vehicles Act, 1988. Its purpose is to ensure that victims of road accidents - pedestrians, other motorists, passengers - receive compensation regardless of the at-fault driver's financial capacity. If insurers were free to price TP coverage competitively, they might underprice it and then deny claims, leaving victims uncompensated.

To prevent this, IRDAI (Insurance Regulatory and Development Authority of India) sets TP premium rates annually through a circular that is binding on all registered non-life insurers. Every insurer - whether HDFC ERGO, Bajaj Allianz, New India Assurance, Acko, or any other - must charge the exact same TP premium for a given two-wheeler category. There is no discounting, no negotiation, and no variation.

The rates are reviewed and typically revised upward annually based on actuarial analysis of claims data. For the financial year 2024-25, IRDAI issued a circular with updated rates. Consumers should note that only TP premium is regulated - the Own Damage (OD) component of a comprehensive policy is not regulated and varies by insurer.

IRDAI Two-Wheeler TP Premium Rates 2024-25

The rates are categorised by engine cubic capacity (cc) for petrol/diesel two-wheelers and by kilowatt (kW) output for electric two-wheelers. The premium is the same regardless of the bike's brand, model, age, or the city in which it is registered.

Up to 75cc (e.g., mopeds, old scooters): ₹538 per year
75cc to 150cc (e.g., Honda Activa, TVS Jupiter, Hero Splendor): ₹714 per year
150cc to 350cc (e.g., Bajaj Pulsar 200, KTM Duke 250, Royal Enfield Meteor 350): ₹1,366 per year
Above 350cc (e.g., Royal Enfield Classic 500, KTM Duke 390, Kawasaki Ninja 400): ₹2,804 per year
Electric two-wheelers up to 3kW: ₹538 per year
Electric two-wheelers 3kW to 7kW: ₹714 per year
Electric two-wheelers 7kW to 16kW: ₹1,366 per year
Electric two-wheelers above 16kW: ₹2,804 per year

These are 2024-25 IRDAI-regulated rates. Rates are typically revised at the start of each financial year (April). Always verify the latest rates on the IRDAI website (irdai.gov.in) or with your insurer.

What Third-Party Two-Wheeler Insurance Covers

A standalone TP two-wheeler policy covers three things: (1) third-party bodily injury or death - if you injure or kill another person in an accident, the Motor Accidents Claims Tribunal can award compensation; your TP policy covers this with unlimited liability for death/injury; (2) third-party property damage - if you damage another person's vehicle or property, TP covers up to ₹7.5 lakh; (3) personal accident cover for the owner-driver - IRDAI mandates a ₹15 lakh personal accident (PA) cover for the owner-driver, which is included in every TP policy for an additional ₹750/year (or ₹342/year if the owner already holds a PA policy for ₹15 lakh).

What TP does NOT cover: damage to your own two-wheeler from accidents, theft, natural calamities, or fire. For coverage of your own vehicle, you need a comprehensive policy or a standalone OD policy in addition to the TP policy.

Riding without TP insurance attracts a fine of ₹2,000 for first offence and ₹4,000 for repeat offence under the Motor Vehicles Act 2019. Traffic police can also impound the vehicle.

TP Premium for New Bikes and Long-Term Policies

Following a Supreme Court order in 2018, all new two-wheelers sold in India must be covered by a 5-year (long-term) TP insurance policy at the time of purchase. Dealers typically bundle this at the time of sale. The 5-year TP premium is pre-collected and paid to the insurer upfront.

The long-term TP premium for a new two-wheeler is not simply 5 × annual rate. IRDAI specifies bundled long-term rates that provide a slight discount compared to multiplying the annual rate by 5. For example, a 5-year TP for a 100cc bike might be ₹3,147 bundled vs ₹714 × 5 = ₹3,570 annual rate multiplied.

After the initial 5-year period expires, the bike owner must renew TP annually (or in multi-year blocks if the insurer offers it). The annual renewal rate reverts to the standard annual IRDAI rate for the engine capacity band.

How to Buy or Renew TP Insurance for Your Bike

You can buy or renew two-wheeler TP insurance through any IRDAI-registered insurer's website, through insurance aggregator portals (Policybazaar, Coverfox, Acko direct), through the insurer's mobile app, or through your bike dealer (at time of purchase). You need the vehicle's RC (Registration Certificate) and your existing policy number (if renewing).

For online renewal, enter your vehicle registration number - most portals will pre-fill the vehicle details from the Vahan database. Select TP-only or comprehensive as needed, choose add-ons if any, and pay via UPI, net banking, or card. The policy document is delivered instantly to your email and is valid immediately upon payment.