How To Get Insurance For Rental Bikes/Two-Wheelers

  • Author :
  • TATA AIG Team
  • Published on :
  • 18/07/2023

Rental bikes have changed the dynamics of intercity commutes. People no longer have to rely on public transport or taxi services or resort to buying their own two-wheelers by digging into their hard-earned savings. Instead, they now have the option to opt for a rental two-wheeler to cater to their various travel needs.

However, rental bikes, much like private two-wheelers, need to be insured if you plan to rent them for any length of time. You should note that two-wheeler insurance for rental bikes works a little differently. For one, you can not use a private insurance plan to secure them. So what insurance plan should you use for rental vehicles? Keep reading to find out.

How To Get Bike Insurance For Rental Bikes In India?

Owners of rental bikes need to insure them the same as private vehicles. However, instead of a private insurance plan, they must use commercial insurance for two-wheelers as it is specifically designed to cover damages for commercial two-wheelers against accidents and third-party liabilities. So regardless of whether you are a fleet operator or renting a single bike - be it of any type or brand. You will need to get bike rental insurance to protect against damages. Additionally, another term used to describe this type of insurance plan is commercial two-wheeler insurance.

What Is A Commercial Two-Wheeler Insurance Plan?

This is a two-wheeler insurance policy that combines third-party insurance and an Own Damage Cover. This means the driver and the third party are covered in accidents, mishaps, or even death. This type of insurance plan can insure any rental two-wheeler or commercial vehicle. However, you should note that a commercial bike insurance plan can be of two types:

  • Comprehensive commercial two-wheeler insurance.

  • Third-party commercial two-wheeler insurance.

They both provide Own Damage Covers and cover third-party liability. The only difference here is that with comprehensive commercial insurance, you get access to add-ons that can provide additional coverage.

[Note: Commercial vehicles are any vehicle used to transport goods within cities or from state to state and for intercity passengers for commutes and travel.]

Do E-Bikes Need Separate Rental Insurance?

For E-bikes with more than 250 watts capacity and a maximum speed limit higher than 25km/h, getting separate e-bike rental insurance is mandatory. Much like regular commercial insurance, it covers third-party liabilities and has an Own Damage Cover.

So if you own an E-bike or are renting one, it is necessary to comply with legal norms and get suitable two-wheeler insurance for your E-bike.

What To Look Out For When Getting Bike Rental Insurance?

Here are a few things to consider when getting bike insurance for rental bikes.

- Decide On Your Coverage

Rental bikes need coverage the same as private bikes. However, the amount of coverage will depend on how much you use the rental bike and will rely on several factors.

So things like driving in more accident-prone areas, driving in a high-risk city, your personal driving habits, etc., will play a role in deciding your coverage.

- Check The IDV

The Insured Declared Value or the IDV is an essential feature to check for in your rental bike. It plays a huge role in calculating your insurance premium for your rental bike. So ensure that you choose the right value to ensure you get compensated adequately in the future when you file for claims.

- Get The Right Plan

You can opt for a basic third-party commercial plan to satisfy the legal mandate for a bike rental in India. However, if you want more benefits, it is recommended that you go for comprehensive bike rental insurance since it provides more add-ons.

- Buy Insurance Online

Buying insurance online is often the go-to method today. This holds true for bike insurance for rental bikes as well. This is because there is less paperwork involved, it is quicker, and you can get numerous discounts.

You can also compare different plans against each other when buying commercial two-wheeler insurance online. Furthermore, most insurance providers offer a bike insurance calculator so that you can accurately calculate the premiums you will have to pay for each plan.

Inclusions And Exclusions Under Bike Insurance For Rental Bikes

Here are the inclusions and exclusions for a bike rental in India:

Inclusions Exclusions
Damages caused to the insured bike in fire - Self-ignition, explosion, or lightning. Consequential loss and losses due to civil war or war-like situations.
Damages caused by riots and strikes, terrorist activity. Wear and tear of the rental bike and electrical/mechanical breakdown, breakage of failure.
Damage to the bike due to theft, burglary, and house break-ins. Your claims will be rejected if you are found to have violated the policy’s terms.
Vehicle damage due to malicious acts or vandalism. If the accident occurred because you broke traffic laws at the time of the accident.
Natural disasters like floods, hurricanes, typhoons, earthquakes, cyclones, etc. Driving without a valid driver’s licence or other supporting documents (registration certificate, pollution under control certificate, insurance certificate).
Accident by external means. Driving while intoxicated - either under the influence of alcohol or illegal drugs.
Personal accident claims that cover permanent total disability or death of either party are also included. Using a bike that is in accordance with “Limitations As To Use”. i.e., using a private vehicle for commercial purposes.

Why Is Bike Rental Insurance Important?

Rental vehicles are just as prone to accidents and damage the same as private vehicles. So getting commercial insurance for your two-wheeler is necessary to protect yourself from undue financial loss. Here are a few vital reasons you should insure your rental bike:

  • Legally Mandated: Getting at least basic third-party insurance for any vehicle you intend to drive on public roads is legally mandatory in India. This also applies to bike rentals in India and all other commercial vehicles.

  • Financial Coverage: Commercial two-wheeler insurance - either third-party or comprehensive, protects you against financial losses during accidents, theft, medical expenses incurred from the accident, etc.

  • It’s also important for the smooth functioning of a business if you are a fleet operator. Moreover, it will protect against huge financial losses since almost any type of two-wheeler gets covered under comprehensive commercial two-wheeler insurance.

  • Peace Of Mind: Your insurance plan financially protects you from any huge losses incurred by your rental bike and covers any third-party liabilities. This can ease a lot of your stress in case any mishaps or accidents occur.


Getting your rental bike insured should be the first step as soon as you are handed your keys. This ensures that you are in compliance with the law and are protected from any huge financial losses from the beginning. So if you are looking for blink like insurance for rental bikes in India, consider Tata AIG. We also provide commercial two-wheeler insurance online for several electric vehicle models under our roster.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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