Variations in Two-Wheeler Insurance Based on Bike Cubic Capacity (cc)

Purchasing the right bike insurance policy is important when you own a two-wheeler. Although third-party bike insurance is mandatory by law, a comprehensive two-wheeler insurance policy provides extensive protection for your bike. 

However, several factors determine the premium and coverage for a bike insurance policy. One of these is the cubic capacity (cc) of a two-wheeler, which is the engine power of a bike. 

In this article, we will explore how different engine sizes impact the cost and coverage of a bike insurance premium.    

Understanding What is Bike Cubic Capacity? 

The power output of an engine is known as its cubic capacity, which can also be referred to as the volume chamber of a bike’s engine. If the cubic capacity of an engine is high, so will the power exerted by the engine. 

The cubic capacity of an engine varies from different ranges between 50 CC to 1800 CC. Cubic capacity also determines how much mileage and horsepower a bike engine can provide. 

A higher CC engine also leads to a higher volume of air and fuel exertion. Cubic capacity also impacts the bike insurance policy premiums. An engine with higher Cubic capacity leads to higher insurance costs compared to an engine with a lower Cubic capacity (CC).

The Impact of Cubic Capacity on a Two-Wheeler Insurance Policy

There are mainly two types of insurance policies available among insurance companies for a two-wheeler:  Comprehensive bike insurance and  Third-party bike insurance. 

The engine capacity range of a bike impacts the premium rate of both third-party and comprehensive bike insurance policies. An engine with a higher cubic capacity requires higher maintenance, which leads to higher premiums. 

Let us look how the engine’s cubic capacity impacts these two-wheeler insurance policy premiums for both comprehensive and third-party insurance.

Impact Of Cubic Capacity  On Third-Party Bike Insurance Policies

Under the Motor Act in India, having at least third-party insurance for a two-wheeler is mandatory. The insurance premium rate of a third-party bike insurance policy (mandated by the IRDAI) is largely dependent on the cubic capacity of a two-wheeler’s engine.  Below is a table highlighting third-party premium rates based on different cubic capacities(CC).

Note: The IRDAI has prescribed these premium rates.

Impact Of Cubic Capacity  On Comprehensive Bike Insurance Policies

The premium rate of comprehensive bike insurance policies differs from third-party bike insurance policy because of its Own Damage(OD) component. Besides cubic capacity, the premium rate of a comprehensive bike policy is dependent on location, make and model of the bike, provider’s risk assessment,  IDV (Insured Declared Value),  add-ons etc.

Other Factors that Determine Bike Insurance Premiums

Although cubic capacity has an impact on bike insurance premiums there are other factors that two-wheeler owners should consider when they look to buy motorbike insurance. Here are some of the other factors:

The Age of the Bike

The bike’s age impacts the cost of insurance premiums. An older bike leads to a lower two-wheeler insurance policy in comparison to a new bike.

Add-Ons

By opting for certain add-ons with bike insurance policy you can extend your policy coverage to fit your insurance needs. These add-ons can increase your bike insurance premium. It is recommended to choose bike insurance add-ons as per your requirement and budget.    

Make and Model of the Bike

Expensive bikes have higher market value and maintenance/repair costs, which leads to higher insurance premium rates. On the other hand, regular bikes have lower market value and maintenance/repair costs which leads to lower premium rates. This is because parts of luxury or high-end bikes are more expensive to replace or repair compared to basic bikes. 

Geographical Location 

When you buy bike insurance online , the location is also a determining factor of bike insurance premiums. The premium rate of a bike insurance policy is higher in metropolitan cities compared to rural areas or tier-2 cities. This is because bikes are at a higher risk of accidents compared to non-metro cities.

Insured Declared Value

Insured declared value or IDV also determines bike insurance premiums. The higher the Insured Declared Value, the higher the bike insurance premium. In case of total loss or theft of the bike, you will get a higher compensation if the higher IDV is agreed upon between you and the insurance provider.   

Conclusion

Therefore, it is safe to say that the cubic capacity of an engine creates variations in the bike insurance premiums, making it important for policyholders to consider the CC of a bike’s engine when looking to buy a bike policy online. To accurately calculate the premium, you can use a bike insurance premium calculator.