Rising bike accidents, costlier EV repairs push up insurance claims: Report
Insurance claims for two-wheelers are surging, with mid-segment bikes and EVs driving the trend as metro riders face higher risks and repair bills continue to climb.
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Policybazaar’s latest analysis of two-wheeler claims across India shows how riding habits, vehicle choices and city traffic are shaping accident and insurance trends. The study, covering the last three years, offers insights on both seasoned bikers and new owners.
Claims Surge as Roads Get Busier
Two-wheeler insurance claims rose 15 per cent in 2024-25, the highest in recent years, and are expected to climb another 10-12 per cent in 2025-26. Rising daily commuting, leisure rides, and a shift towards mid-segment motorcycles are driving this spike. Easier claims processes and better awareness are also prompting more riders to report incidents.
Mid-Segment Motorcycles Dominate Claims
Motorcycles in the 150–350 cc range recorded a 15 per cent jump in claims, while smaller commuter bikes remained steady. Scooters continue to see fewer claims. The growing appetite for faster, higher-powered machines in congested cities is fuelling accident risk.
EV Repairs Hit the Pocket Harder
Though electric two-wheelers form a small share of the market, they stand out for higher risks. Claim frequency is 18-20 per cent higher than petrol bikes, while repair costs are 30-35 per cent more. Early adopters often face issues linked to battery handling and costly parts.
Metro Riders Bear Higher Risk
Nearly half of all claims come from Maharashtra, Delhi, and Uttar Pradesh, followed by Karnataka and Tamil Nadu. Dense traffic and higher vehicle values make metro riders more prone to accidents and thefts. Ghaziabad, Meerut, Jaipur, Islampur, Kanchipuram, and Muzaffarpur have emerged as theft hotspots.
Accidents Frequent, Thefts Costly
Accidents and natural calamities: 70–75 per cent of claims
Theft or total loss: 20-25 per cent of claims
Third-party liability: Rare but high-value
While most claims involve minor accidents-- scratches, dents, or small collisions averaging Rs 4,000–7,000—instances of theft or total loss are financially more damaging.
When Do Most Accidents Happen?
The highest number of claims occur during weekday commuting hours—between 8–10 am and 6–8 pm—highlighting the risks of navigating urban traffic. Experienced policyholders, however, report 25 per cent fewer claims, suggesting that familiarity with routes and cautious riding matter.
Why Comprehensive Cover Matters
As Manas Kapoor, head of two-wheeler Insurance at Policybazaar, points out, the evolving risks underline the need for robust coverage. A comprehensive policy not only protects against routine mishaps but also against theft, natural calamities, and rising repair costs—particularly relevant for newer segments such as EVs.