Even though two-wheeler insurance has been mandatory in India for decades, there’s still a lot of confusion among riders.
Many believe that third-party cover is “enough,” or that comprehensive plans are “too costly.” Others think insurance is optional for scooters or older bikes.
The truth? Most of these beliefs are outdated myths that can cost you money - or worse, your legal protection.
In this post, we’ll bust the 10 most common two-wheeler insurance myths that still circulate among riders in Hyderabad, Telangana, and explain the real facts every bike owner should know.
Myths About Bike Insurance
Myth #1 - “Bike Insurance Is Optional”
Fact: Two-wheeler insurance is legally mandatory under the Motor Vehicles Act, 1988.
Every bike must have at least Third-Party Liability (TP) coverage to drive legally. Riding uninsured can lead to a ₹2,000 fine or license suspension.
Myth #2 - “Third-Party Insurance Covers Everything”
Fact: Third-party insurance only covers damage to others - not your own bike.
You need a Comprehensive policy for protection against theft, accident, fire, or floods.
Myth #3 - “Comprehensive Insurance Is Too Expensive”
Fact: A comprehensive plan usually costs ₹300–₹600 more per year but saves thousands during claims.
For example, an Activa 125 comprehensive policy costs about ₹900/year - barely ₹2.50 per day.
Myth #4 - “Old Bikes Don’t Need Insurance”
Fact: Age doesn’t matter - every bike on the road must be insured.
You can choose a Third-Party-only policy for older models to stay compliant without overpaying.
Myth #5 - “Insurance Covers Mechanical Wear and Tear”
Fact: Regular maintenance, oil changes, and worn-out tyres are not covered.
Insurance covers only accidental damage or loss due to unforeseen events - not routine service.
Myth #6 - “NCB Is Lost If I Switch Insurer”
Fact: Your No Claim Bonus (NCB) belongs to you, not your insurer.
It can be transferred to a new insurer or bike using an NCB certificate - valid for 3 years.
Myth #7 - “All Policies Are the Same”
Fact: Each insurer offers different IDV, add-ons, and claim service quality.
Comparing plans through PolicyBachat can save up to 40% while improving claim experience.
Myth #8 - “Claims Always Reduce Your Bonus”
Fact: Minor claims don’t affect your NCB if you have the NCB Protect add-on.
This add-on keeps your bonus even after one approved claim.
Myth #9 - “You Need to Visit an Office for Renewal”
Fact: Renewals are 100% online now.
Enter your registration number, compare, pay, and get your digital policy instantly - no inspection needed if you renew on time.
Myth #10 - “You Don’t Need Add-ons for a Small Bike”
Fact: Even scooters benefit from Zero Depreciation, RSA, and NCB Protect.
Add-ons don’t depend on engine size - they depend on how often and where you ride.
Bonus Myths Quick Table
| Myth |
Fact |
| Insurance isn’t needed for scooters |
All motor vehicles must be insured |
| Only expensive bikes need comprehensive cover |
Accidents can damage any bike |
| Dealers always give the best price |
Online plans are 15–30% cheaper |
| e-Policies aren’t valid |
Digital policies are legally accepted |
| Policy lapses can be ignored |
You lose coverage and NCB immediately |
Why These Myths Still Exist
- Lack of awareness among new riders.
- Auto-debit or renewal reminders missed.
- Misleading advice from agents.
- Outdated information about inspection or policy formats.
Reality: IRDAI, RTO, and traffic police now accept fully digital policies - no paperwork needed, no middlemen.
How PolicyBachat Helps You Cut Through Confusion
- Compare 20+ insurers in one place.
- Real-time premium and IDV display.
- Transparent add-on details - no hidden terms.
- Automatic reminders before expiry.
- Support for renewals, claims, and transfers.
Local Insights for Hyderabad
- Top 3 misconceptions among riders: Insurance is optional, Third-party is enough, Old bikes don’t need coverage.
- % of uninsured bikes still on road: 18%.
- Most common myth leading to fines: “Old bikes don’t need insurance.”
- Avg. penalty collected yearly in Telangana: ₹2,50,000.
Get Your Two-Wheeler Covered Today →
FAQs
Is it legal to ride without bike insurance?
No, it’s a punishable offense under the Motor Vehicles Act.
Does online insurance have the same validity as offline?
Yes, e-policies are equally valid nationwide.
Can I renew bike insurance after expiry?
Yes, within 90 days - otherwise you lose NCB.
Do I need insurance for an electric bike?
Yes, for all EVs above 25 km/h or 250W.
Does insurance cover self-damage?
Only under a comprehensive plan.
Is long-term bike insurance better?
Yes, it avoids lapses and annual renewals.
Are all add-ons necessary?
No, choose based on your bike’s age and usage.
Can I check my insurance status online?
Yes, through VAHAN or PolicyBachat.
Is insurance transferred automatically when I sell my bike?
No, you must transfer it within 14 days.
What if I lose my insurance copy?
Download digital copy from PolicyBachat or insurer site.
Does claim-free year really save money?
Yes, NCB discounts grow up to 50%.
Do I need insurance for test rides?
The dealer’s policy covers that temporarily.
Are multi-year policies worth it?
Absolutely, cheaper and more convenient.
Can I get fined for expired insurance?
Yes, ₹2,000 fine and possible seizure.
What’s the best way to bust these myths?
Compare, read, and buy from verified IRDAI partners like PolicyBachat.
Customer Reviews
- “Had no idea my old scooter still needed insurance - fixed it instantly.” - Shweta Ghosh, Lucknow
- “This cleared so many myths - now I have Zero Dep too.” - Harish Menon, Kochi
- “Didn’t know digital policies were legally valid - so convenient.” - Rashmi Patel, Ahmedabad
- “Agents kept saying online plans aren’t safe - totally false!” - Aamir Siddiqui, Delhi
- “Excellent myth-busting article - every new rider should read this.” - Meenakshi Rao, Hyderabad
- “Now I understand why my claim was rejected - wrong policy earlier.” - Deepak Jain, Chennai
- “Simple, honest explanations. Shared this with my biking group.” - Vivek Joshi, Pune
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