Two-wheeler insurance claims across India have surged 15% in 2024-25, reaching the highest levels recorded in recent years, according to new data released by Policybazaar. The analysis, covering three years of claims data, reveals significant shifts in rider behavior and vehicle preferences that are reshaping the insurance landscape.
Mid-segment motorcycles in the 150-350cc category emerged as the primary drivers of increased claim activity, recording a 15% rise in claims while smaller bikes under 150cc remained stable, the Policybazaar report shows. This trend reflects the growing preference among Indian riders for higher-powered motorcycles, which comes with increased accident probability due to enhanced speed and engine capacity.
The electric vehicle segment, though still small in overall numbers, presents unique challenges for insurers, according to the Policybazaar data. EV claims are 18-20% more frequent and cost 30-35% more than traditional petrol bikes to repair. The higher repair costs are attributed to specialized battery components and limited service networks for electric two-wheelers.
Geographically, Maharashtra, Delhi, and Uttar Pradesh account for approximately 45% of all claims, with Karnataka and Tamil Nadu contributing another 20%, the analysis reveals. Metro areas show consistently higher exposure rates due to dense traffic conditions and frequent daily usage patterns.
The timing of accidents follows predictable patterns aligned with urban commuting schedules, according to Policybazaar’s findings. Claims peak during morning rush hours (8-10 AM) and evening commute times (6-8 PM), with weekday incidents significantly outnumbering weekend accidents. This pattern underscores that routine daily commuting, rather than recreational riding, drives the majority of insurance claims.
Accident-related claims and natural calamities account for 70-75% of all claims, while theft and total loss incidents comprise 20-25%, the report states. Although theft incidents are less frequent, they result in substantially higher payouts, making them financially significant for insurers.
The average claim amount ranges from ₹4,000 to ₹7,000 depending on engine size, with most claims involving body damage repairs handled by local mechanics, Policybazaar data shows. These frequent minor incidents – including dings, scratches, and small collisions – accumulate over time and represent a key driver of overall claim activity.
Interestingly, experienced policyholders who renew their insurance show 25% lower claim frequency compared to new customers, though average claim amounts remain similar, according to the analysis. This suggests that riding experience and familiarity with routes contribute to safer riding patterns and better risk awareness.
Industry experts project continued growth in claims activity, with Policybazaar forecasting another 10-12% increase in 2025-26. The upward trend is attributed to growing daily commuting patterns, increased leisure riding, and higher adoption rates of mid-segment motorcycles across urban India.
The Policybazaar data also reveals specific theft hotspots including Ghaziabad, Meerut, Jaipur, Islampur, Kanchipuram, and Muzaffarpur, where riders face elevated risks of vehicle theft and total loss incidents.
“Our analysis shows that two-wheeler risks are evolving rapidly, with mid-segment motorcycles filing the highest number of claims, EVs recording 30-35% costlier repairs, and most incidents occurring during routine commuting hours,” said Manas Kapoor, Head of Two-Wheeler Insurance at Policybazaar. “These patterns highlight that accidents and damages are not isolated events but everyday realities for riders.”
The findings suggest that comprehensive insurance coverage has become increasingly important as repair costs rise and riding patterns evolve. The analysis indicates that greater insurance awareness and improved claims processes have encouraged more riders to file claims, contributing to the overall increase in claim volumes.
As India’s two-wheeler market continues to expand and diversify with new vehicle categories like electric bikes, insurance companies are adapting their products and pricing models to address emerging risk patterns and changing rider demographics across the country’s varied geographic and traffic conditions.