If you own a two-wheeler in India, understanding your insurance obligations is not just important—it’s mandatory. In 2025, motor insurance regulations continue to ensure that all vehicle owners comply with the law to safeguard both themselves and others on the road. So, which insurance is compulsory for a 2-wheeler in 2025? Let’s break it down.
The Mandatory Insurance: Third-Party Two-Wheeler Insurance
As per the Motor Vehicles Act, 1988, Third-Party Liability Insurance is compulsory for every two-wheeler owner in India. This law remains firmly in place in 2025.
What Is Third-Party Insurance?
Third-party insurance provides coverage against:
- Injury or death of a third party
- Property damage caused by your two-wheeler
It does not cover damages to your own vehicle or personal injuries. Its primary role is to financially protect others who may be harmed due to an accident involving your vehicle.
Why Is It Mandatory?
Third-party insurance is designed to:
- Ensure victims of road accidents are compensated
- Reduce the financial burden on the at-fault vehicle owner
- Promote responsible driving behavior
Driving without valid third-party insurance is a punishable offense in India and can lead to:
- Fines (₹2,000 for first offense, ₹4,000 for repeat)
- Vehicle seizure
- License suspension
Optional But Recommended: Comprehensive Two-Wheeler Insurance
While third-party insurance is mandatory, many two-wheeler owners choose to upgrade to comprehensive insurance for better protection.
Benefits of Comprehensive Insurance:
- Covers own-damage (accidents, theft, natural disasters, fire)
- Includes third-party liability (as required by law)
- Offers add-ons like zero depreciation, roadside assistance, etc.
In 2025, with increasing road traffic and theft cases, comprehensive coverage is becoming a smart financial choice for long-term protection.
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New Two-Wheeler Owners in 2025: What You Need to Know
As per the IRDAI mandate, all new two-wheelers sold after September 2018 must have:
- 5-year third-party insurance upfront at the time of purchase
- Option for bundled own-damage coverage (1 year or more)
This helps avoid lapses in policy and ensures compliance from day one.
Documents Required for Two-Wheeler Insurance in 2025
To buy or renew your two-wheeler insurance, keep these ready:
- Registration Certificate (RC)
- Previous policy details (if renewing)
- Vehicle details (model, make, year)
- Personal ID and address proof
Is Renewal Mandatory Every Year?
- Third-party insurance: If you bought a long-term policy, check the expiry (usually 5 years for new bikes)
- Own-damage insurance: Requires annual renewal unless you opted for a long-term plan
Make sure to set reminders for renewal to avoid fines and loss of coverage.
Final Thoughts: Ride Legally and Safely
To answer the question, third-party insurance is the only insurance that is legally compulsory for two-wheelers in 2025. However, upgrading to a comprehensive policy is a wise move to protect both your bike and your finances.
Always compare plans online, read reviews, and choose an IRDAI-approved insurer with good claim settlement history.
Frequently Asked Questions
1. Is third-party insurance enough for my new bike?
Legally, yes. But for full protection against theft and accidents, comprehensive insurance is better.
2. Can I be fined for expired insurance?
Yes, riding with an expired or no insurance policy can lead to fines and other penalties.
3. How to check if my bike insurance is active?
Visit the Parivahan Sewa website or your insurer’s portal to verify insurance status.
Check Latest IRDAI Guidelines for Two-Wheeler Insurance (2025)
