Recent findings from Policybazaar indicate a significant increase in two-wheeler insurance claims across India, reflecting changes in how and where people use their motorcycles and scooters.
Over the 2024-25 period, claim volumes grew by 15%, marking a new high compared to previous years.
Projections suggest this upward trend will persist, with claims expected to rise by another 10% to 12% in 2025-26.
Industry analysts attribute this growth to a combination of factors. The expansion of daily commuting, a rise in leisure riding, and a shift toward mid-segment motorcycles have all contributed to greater exposure on the roads.
Urban centres, in particular, are seeing more active riders and heavier traffic, which in turn leads to more frequent accidents and insurance claims.
Additionally, improved awareness of insurance options and streamlined claims processes have made it easier for policyholders to file claims, further driving up the numbers.
Policybazaar’s data shows that motorcycles in the 150-350 cc segment are now responsible for the largest share of claims, with a 15% increase in this category alone
Smaller motorcycles under 150 cc have seen stable claim rates, while scooters continue to report fewer incidents.
The move toward higher-powered bikes is believed to increase accident risk, especially in congested city environments.
Electric two-wheelers, though still a minority on Indian roads, are emerging as a distinct risk segment. Claims involving electric vehicles (EVs) occur 18% to 20% more frequently than those involving petrol-powered bikes, and the average cost to settle these claims is 30% to 35% higher.
Most EV claims are concentrated in urban areas, and the higher costs are often linked to battery repairs and the relative unfamiliarity of riders with EV technology.
The prevalence of bundled insurance policies at the point of sale also makes it harder to track standalone own-damage claims for EVs.
The distribution of claims is not uniform across the country. Maharashtra, Delhi, and Uttar Pradesh together account for nearly half of all two-wheeler insurance claims, with Karnataka and Tamil Nadu contributing another 20%.
Certain cities, including Ghaziabad, Meerut, Jaipur, Islampur, Kanchipuram, and Muzaffarpur, have been identified as hotspots for vehicle theft.
Most claims (70% to 75%) are related to accidents or natural calamities, while thefts and total losses make up about a quarter of the total. Third-party liability claims are less common but tend to involve higher payouts.
The average claim amount ranges from ₹4,000 to ₹7,000, depending on the engine size, and most claims involve minor body damage typically repaired by local workshops.
Policybazaar’s analysis also highlights that riders with policy renewal histories – often more experienced riders – tend to file fewer claims, with a 25% lower frequency compared to first-time policyholders.
However, the average claim amount remains similar across both groups, suggesting that experience primarily reduces the likelihood of accidents rather than the severity.
The timing of incidents is another key factor. Claims are most likely to be filed during weekday rush hours, specifically between 8am to 10am, and 6pm to 8pm, aligning with peak commuting periods. Fewer claims are reported on weekends, indicating that routine weekday travel is a major driver of accident risk.
Manas Kapoor, head of two-wheeler insurance at Policybazaar, said Policybazaar’s data indicates that risks associated with two-wheelers are changing quickly.
“Mid-segment motorcycles are filing the highest number of claims, EVs are recording 30% to 35% costlier repairs, and most incidents are occurring during routine commuting hours. These patterns highlight that accidents and damages are not isolated events but everyday realities for riders. This is why opting for comprehensive insurance becomes critical – it ensures protection not only against accidents, but also against theft, natural calamities, and rising repair costs, especially in the case of newer vehicle segments like EVs,” he said.
