How Does Cubic Capacity (CC) Vary & Its Impact on Bike Insurance Premium?

What is a Cubic Capacity of a Bike?

CC or Cubic Capacity refers to the maximum power generated by the engine to run the vehicle. The CC is the measurement term used for the combustion cylinder or chamber that is an integral part of the engine. The primary role of this cylinder is to supply power to the vehicle. Therefore, the higher the CC, the bigger the combustion cylinder and the more the power output will be.

The CC is the crucial factor in determining how much power the bike's engine produces depending upon the stroke burnt, torque, and horsepower (HP).

How Does Engine Capacity Impact Two-wheeler Insurance Premium?

The engine's capacity is calculated with the help of various factors like mileage, power, torque, horsepower, etc. The bikes with lower engine capacity tend to produce less power output. Hence, they are more affordable to insure in comparison with the higher engine capacity bikes.

That's why the CC of a bike becomes one of the prominent factors in calculating the two-wheeler insurance premium. Moreover, as per the IRDAI (Insurance Regulatory and Development Authority of India), the CC also determines the premium for the mandatory third-party bike insurance plan.

Impact of CC on Third-party and Comprehensive Bike Insurance Premium

In India, according to the Motor Vehicle Act, third-party liability insurance is a mandatory requirement for all two-wheelers. The IRDAI has prescribed third-party premium rates based on the bike engine capacity range. The following table highlights the premium rates for various cubic capacities-

The above-mentioned third-party premium rates are standard across India. However, the comprehensive bike insurance premium differs due to the OD (Own Damage) component. It also depends upon the motor insurance provider's risk assessment, location, make & model, add-ons, etc.

In simpler terms, the premium rates for third-party bike insurance largely depend upon the CC of the bike's engine. On the other hand, the comprehensive bike insurance plan considers other factors as well while determining premium.

However, if you want to find the premium for your two-wheeler, you can visit Policybazaar.com and use the online bike insurance premium calculator for different types of two-wheelers.

Other Factors Determining the Own-damage Insurance Premium

When you calculate the insurance premium for your own damage, apart from the bike's engine capacity, some other factors also influence the premium. Have a look-

1. Year of Manufacture- Since the bike parts depreciate with time, thus, sum insured also reduces with it. The insured amount has a direct relation with the age of the bike.

2. Location- Another factor is the location. It is said that if you reside in metropolitan cities, you might have to pay a higher premium as compared to non-metropolitan cities.

3. Make & Model- Make & model of the bike is a significant factor to decide the premium. The premium is said to be higher for high-end models or premium bikes. Even to insure a sports bike, you might have to spend more in comparison to low-end models because their parts are expensive to replace or repair.

4. Add-on Covers- Add-on covers (commonly known as riders) provide extra coverage for a specific vehicle part and increase the price of the base plan. If you are planning to buy any additional cover, it will increase the insurance premium. Therefore, it is advised to choose the riders as per your need and budget.

The Final Words!

A Cubic Capacity (CC) of the bike's engine is one of the vital factors that the insurer considers. The bike engine with 100CC delivers the best mileage and is affordable to insure.

Whereas, the bike engines with more than 200CC are expensive as well as deliver the least amount of mileage. Moreover, their insurance premium is higher than any other lower cubic capacity bike engine.