Total Loss In Bike Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 01/11/2022

Comprehensive bike insurance policy is designed to offer coverage for damages to your bike and third-party liabilities. If you have purchased a comprehensive two wheeler insurance plan and your bike gets damaged due to an accident/collision or a natural or man-made disaster, then you can file a claim with the insurer for the repairs.

The insurance company assesses the extent of the damage and decides on a settlement amount. On some occasions, the company might declare it to be a total loss or constructive total loss. For many bike owners, these terms seem confusing, and hence, they are unaware of how to file a total loss/constructive total loss claim. In this article, we will simplify these concepts and show you how to go about a total loss bike claim process.

Understanding Constructive Total Loss and Total Loss in a Bike Insurance Policy

When you file a two wheeler insurance claim, the insurance provider will assess the damage and provide cashless or reimbursement-based compensation. Regardless of the degree of damage, the insurance company will never pay more than the Insured Declared Value or IDV of the bike.

If the bike needs minor repairs, then the insurer reimburses the cost of repair or replacement of parts. The reimbursement is made after factoring in depreciation and deductibles as per the policy’s terms and conditions.

However, if the bike has suffered severe damage and is beyond repair, then the insurance company might declare it a Total Loss. In simpler terms, if the total cost of repairing the bike is more than its current value, then the bike is declared as a total loss. Constructive Total Loss is when the cost of repair of the bike is more than 75% of its IDV.

If your bike gets stolen and police are unable to retrieve it, then the insurer will treat your claim as a total loss claim and reimburse the IDV of the two-wheeler minus depreciation and deductibles as per the terms of the policy.

How to file a Constructive Total Loss or Total Loss Claim

At Tata AIG, the procedure to file a Total Loss or Constructive Total Loss claim is simple:

  • Log in to our official website (
  • Visit the Claims Process page
  • Provide information about your policy and yourself as prompted
  • Complete self-inspection of your bike via the link sent to your registered mobile phone
  • Get the bike inspected via the surveyor sent by us
  • Submit the required documents and forms

If the surveyor declares the bike a total loss or constructive total loss, then we will process the claim settlement amount based on the IDV, depreciation, and deductibles.

How is IDV calculated in Total Loss or Constructive Total Loss claims?

When you file a total loss claim, the insurer pays the sum insured minus depreciation and deductibles.

  • Sum insured is the IDV of the bike. It is the maximum amount that the insurer will pay if your bike gets stolen or damaged beyond repair.
  • A bike is a depreciating asset and loses value with time. Insurance companies have a fixed method to calculate the depreciated value of the bike based on its age.
  • A deductible is an amount that the policyholder needs to pay out of his pocket at the time of claim settlement. There is a nominal compulsory deductible and a voluntary deductible that you can choose to reduce the premium of the policy.

Hence, in a total loss/constructive total loss claim, the maximum amount that you can receive is = Sum Insured (or IDV) – Depreciation – Deductibles.

Here is a table to help you understand how insurance companies calculate the depreciated IDV of a bike:

An Important Thing to Remember After the Total Loss of a Bike

If you have Comprehensive Insurance for 2 Wheeler and file a Total Loss Bike Insurance claim, then it is mandatory to cancel the Registration Certificate of your bike as soon as possible. A total loss means that the bike is not in a condition to be driven and might not ever be used on the roads again. Hence, it is prudent to cancel the registration certificate rather than risk it being used for unlawful purposes.

If you want to cancel the RC of your bike, then you need to visit the local RTO office and submit an application for RC cancellation. Remember, failing to cancel the RC after a total loss claim is illegal and can result in fines and penalties.

Accidents can be dangerous. Also, when a bike is damaged, the owner wants to get it repaired as soon as possible to avoid hassles and additional commuting costs. At Tata AIG, we have designed a claims process that helps us settle claims faster and in a more efficient manner. We also handle total loss and constructive total loss claims with speed and efficiency. Before you purchase comprehensive insurance for 2 wheeler, make sure that you research the market and look at the options available to you. Compare two wheeler insurance providers and plans and choose the perfect policy for your needs.


An insurance company declares a two-wheeler as a Total Loss or Constructive Total Loss when it is stolen or damaged, and the repair costs are more than 75% of its IDV. In other words, it is an indication that the bike is no longer capable of being driven. With a comprehensive policy, you can receive a lump sum compensation that can help you purchase your next bike without breaking the bank.

Frequently Asked Questions

Q1. When does a two wheeler insurance claim become a total loss claim?

There are two scenarios under which a total loss claim is registered by a bike insurance policy provider:

  1. Theft of the bike where the police are unable to locate the vehicle
  2. Major damages to the bike where the cost of repair is more than 75% of the IDV of the vehicle

Q2. Is it mandatory to cancel the RC after filing a total loss claim?

When you file a total loss claim, your bike is either stolen or damaged beyond repair. Under both circumstances, you will not be able to ride it. Hence, its registration certificate holds no value. Further, the law mandates all bike owners to cancel the RC after filing a total loss claim.

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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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