How Does the Cubic Capacity (cc) Of the Bike’s Engine Affect Two-Wheeler Insurance?

If you are going to purchase a bike, you will need to start looking for suitable bike insurance. If you think it will be just another unnecessary expense on your part, you are sadly mistaken. Even though the Motor Vehicles Act, 1988, has mandated having at least third-party insurance for every vehicle in the country, insurance for bike can provide you with a much-needed financial cushion. 

So, make sure you calculate your insurance premiums through a bike insurance calculator online and opt for a policy that will suit your requirements the best. Also, choose a sum assured which you think will provide you with just the right kind of financial support during any sticky situation.

However, while opting for online insurance for two-wheelers, you need to understand that a few factors will affect the insurance premiums. For example, the age of your vehicle, its registration location, the model of your bike, claim history, add-on covers, and voluntary deductible, each one of these will affect your insurance policy. In addition, another crucial factor that would affect your insurance premium is the Cubic Capacity (cc) or the engine capacity of your bike. 

This article will talk about everything related to cubic capacity and how it will impact your bike insurance premium.

What is Cubic Capacity (cc) in Bikes?

The cubic capacity of a bike is the maximum power output for its engine. It is also known as the engine capacity, which is the volume of the vehicle’s engine chamber. Simply put, the measurement of the chamber or the cylinder of a bike’s engine in cubic centimetres is termed the cubic capacity or cc. So, the higher the cubic capacity, the larger will be its power output.

While buying a bike, the cc will be the primary factor in understanding the power capacity of its engine. The engine will produce power in terms of torque, horsepower, and fuel consumption. So, a bike with a lower engine capacity, or cc, will be cheaper to insure than the one with higher cc. The cubic capacity is, therefore, one of the determining factors in a two-wheeler insurance premium.

According to the Insurance Regulator and Development Authority of India (IRDAI), a two-wheeler’s cubic capacity is one of the primary factors determining the premium of a third-party liability insurance policy. So, while calculating your premium on a bike insurance calculator online, you will have to enter your bike’s cc and the other details to know the premium amount you need to pay.

How Does the CC Impact the Comprehensive and Third-Party Insurance Plans for a Two-Wheeler?

A third-party liability plan is minimum insurance that every two-wheeler owner has to opt for in India. This insurance provides coverage against any injury or death to the third party or damage to their property during accidents. 

The IRDAI determines the premium for third-party insurance plans for a two-wheeler. Hence, the insurance sector in India has regulated some predetermined rates of premium based on the engine capacity of a bike.

Cubic Capacity of a Bike (cc) Third-party Insurance Premium Rates
Less than 75cc ₹482
Exceeding 75cc but less than 150cc ₹752
Exceeding 150cc but less than 350cc ₹1,193
Exceeding 350cc ₹2,323
Less than 1000cc ₹2,072
Exceeding 1000cc but less than 1500cc ₹3,221
Exceeding 1500cc ₹7,890

For all insurance companies across India like Tata AIG, the third-party insurance rates are the same. However, for comprehensive insurance policies, the difference arises due to the different rates of the Own Damage (OD) cover plan. 

This is because, based on the insurance company’s risk assessment, their premium rates for the OD cover plan will vary. In addition, in comprehensive policies, the IDV of the vehicle also plays a prominent role in determining the premium rate.

Other Factors Determining the Premium Rates in a Bike Insurance

Apart from the cubic capacity (cc) of a two-wheeler, here are a few more factors that influence the premium costs in insurance for bikes:

  • Age of the Bike: The sum assured is directly proportional to the age of the two-wheeler. Since the vehicle depreciates over time, the insured sum will also reduce over time.
  • Geographical Location: The premium of your bike insurance will be higher if you stay in a metropolitan city as compared to tier-II cities or rural geographical areas. This is because the risk factor is higher in big cities as compared to the non-metro ones.
  • Make and Model of the Vehicle: The premium amount will be higher for high-end or premium bikes. In comparison, the premium is lower for inexpensive/basic bikes. The reason is, for luxury vehicles, the parts are expensive to replace or repair as compared to the basic bikes.
  • Voluntary Deductibles: Compulsory or voluntary deductibles will require you to pay a certain part of the repair expenses from your pocket. And your insurer will pay the rest of the amount. With voluntary deductibles, you will agree to pay more from your end for the repair charges. So, the higher the voluntary deductible from your end, the lesser the premium will be. However, with higher deductibles, you will require to pay more from your pocket during the claim settlement process.
  • NCB (No Claim Bonus): If you do not raise any claims during the policy term, you will get a discount in the form of a No Claim Bonus (NCB). It can even go up to 50% if you do not submit any claims for five successive years. And this discount will, therefore, impact your bike’s insurance premium.
  • Security Tool Installation: Installing anti-theft tools and devices or other security features in your bike will reduce theft risk and lower the risk of damages. This will, in turn, reduce the insurance premium.


Online insurance for two-wheelers is a must-have for every bike owner in the country. However, the premium rates are devised by the insurer by taking into consideration several factors. And the cubic capacity (cc) of a bike is one of the most vital aspects to find out the insurance premium of the same. 

So, now that you are aware of how the cc of your chosen bike will impact your bike insurance premiums, it’ll be better for you to plan for your premium payments.