With the increasing presence of mid-segment motorcycles on the streets of India, two-wheeler insurance companies are observing a steady surge in claims related to these bikes. This trend is reshaping the evaluation of two-wheeler risks as we approach the year 2026.
Mid-segment motorcycles, typically ranging from 125cc to 250cc, have gained popularity in both urban areas and smaller towns. Riders are drawn to these bikes for their power, fuel efficiency, and affordability. Consequently, insurers are encountering a higher number of claims for these bikes, particularly concerning own-damage bike insurance policies.
Insights from Bike Insurance Claim Data
Experts in the insurance industry point out that the increase in bike insurance claims is attributed to changes in riding behavior. Unlike entry-level bikes, mid-segment motorcycles are often used for longer journeys, highway trips, and navigating mixed traffic conditions, which elevate the risks for riders.
One common issue encountered is skidding during sudden braking. In bustling city traffic, riders frequently need to halt abruptly to avoid collisions with pedestrians or vehicles, leading to falls and damage to various parts such as fuel tanks, side panels, and exhausts. Even minor incidents can result in expensive repairs.
Rear-end collisions at traffic signals are also prevalent. Mid-segment bikes have quick acceleration capabilities, but unexpected changes in traffic flow can make it challenging to come to a stop in time, often causing damage to the suspension and brakes, thereby increasing the claim amounts.
Impact of Higher Repair Costs on Claim Amounts
Insurers highlight that the rise in claim frequency is only part of the issue. The average cost per claim has also escalated due to the use of more advanced components in mid-segment motorcycles.
For instance, a minor accident may necessitate the replacement of digital instrument clusters, ABS sensors, or alloy wheels, which are considerably pricier than components found in basic commuter bikes. Consequently, even minor mishaps now lead to higher payouts for bike insurance claims.
Evolution in Approach by Bike Insurance Companies
In response to these evolving trends, insurers are reassessing how they evaluate risk. Industry reports indicate a heightened focus on factors such as past claim history, nature of usage (daily commuting versus occasional riding), urban congestion levels, and engine capacity-based loss ratios.
This data-driven approach is likely to influence the setting of own-damage premiums in 2026. However, third-party bike insurance rates will still be regulated by IRDAI.
Implications for Riders in 2026
In the upcoming year, riders may experience more personalized two-wheeler insurance policies. Making multiple claims within a year, even for minor repairs, could lead to an increase in your bike insurance renewal premium. On the flip side, riders maintaining a clean claim record can continue to benefit from the No Claim Bonus (NCB), an effective way to manage insurance expenses.
Insurance advisors emphasize that frequent small claims might diminish discounts over time, a factor often overlooked by many riders.
Growing Significance of Add-On Covers
As repair costs surge, more individuals are opting for additional insurance add-ons. For example, zero depreciation cover proves beneficial when replacing panels or parts post minor accidents. Roadside assistance, which includes towing services after breakdowns, is gaining popularity among mid-segment bike owners who frequently embark on long-distance journeys.
Mitigating Risk – Recommendations for Riders
Experts suggest that riders can reduce accident risks and insurance expenses by adopting defensive riding practices, avoiding unnecessary high-speed travel in congested areas, evaluating coverage based on actual usage rather than solely on price, and adhering to traffic regulations for safer roads and fewer insurance claims.
Looking Towards the Future!
With the evolving landscape of India’s two-wheeler market, insurance practices in 2026 are anticipated to place a greater emphasis on riding behaviors, particularly concerning mid-segment bikes. Understanding these developments can assist riders in making informed insurance decisions and feeling more secure while navigating busy roadways.
