Does Cubic Capacity Affect Your Bike Insurance Premium?

When purchasing a new bike insurance policy, different factors impact the bike insurance premium. A Cubic Capacity (CC) is a highly significant factor affecting the premium rate and the performance of a two-wheeler. Let's find out how engine's cubic capacity impacts bike insurance premiums.

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What is the Cubic Capacity of a Bike?

CC or Cubic Capacity refers to the maximum power generated by the engine to run the two-wheeler. 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 two-wheeler. Therefore, the higher the CC, the bigger the combustion cylinder and the higher the power output.

The CC is crucial 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. Bikes with lower engine capacity tend to produce less power output. Hence, their bike insurance premium is lower than the higher-engine capacity bikes.

That's why a bike's CC becomes a prominent factor in calculating the two-wheeler insurance premium. Moreover, as per the IRDAI, 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 bike insurance policy is a mandatory requirement for all two-wheeler owners. The IRDAI has prescribed third-party bike insurance premium rates based on the engine capacity range. The following table highlights the premium rates for various cubic capacities:

Engine Capacity (in CC)	1 year Third-party Insurance Premium (in ₹)
For less than 75cc	₹ 538
In between 75cc and 150cc	₹ 714
In between 150cc and 350cc	₹ 1366
For more than 350cc	₹ 2804

The above-mentioned third-party bike insurance premium rates are standard across India. However, the premium for comprehensive bike insurance policy 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 policy also considers other factors while determining premiums.

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

Other Factors Determining the Comprehensive Bike Insurance Premium

When you calculate comprehensive bike insurance price, apart from the bike's engine capacity, some other factors also influence the premium. Have a look:

Year of Manufacture: Since the bike parts depreciate with time, the sum insured also reduces. The insured amount is directly related to the age of the bike.
Location:Another factor is the location. If you reside in metropolitan cities, you might have to pay a higher premium than non-metropolitan cities.
Make & Model: The make & model of the bike is a significant factor in deciding 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 than low-end models because their parts are expensive to replace or repair.
Add-on Covers:Add-on covers in bike insurance policy (commonly known as riders) provide extra coverage for a specific bike’s part and increase the comprehensive bike insurance premium. If you are planning to buy any additional cover, it will increase the price of your bike insurance renewal. Therefore, it is advised to choose bike insurance add-ons as per your needs and budget.

The Final Words!

The 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. Meanwhile, bike engines with more than 200CC are expensive and deliver the least mileage. Moreover, their insurance premium is higher than any other lower cubic capacity bike engine.