In a landmark ruling on August 4, 2026, the Supreme Court directed IRDAI (Insurance Regulatory & Development Authority of India), the statutory body that oversees the insurance sector in India, to extend the term of mandatory third-party insurance coverage for two-wheelers to 6 years.
The judgement overrules the earlier precedent set by the apex body in its 2018 judgement (S. Rajaseekaran vs Union of India), which required new two-wheeler owners to obtain five years of mandatory insurance cover at the time of purchase. The Bench noted that, in view of the “shocking” number of vehicles plying on Indian roads without mandatory insurance and in the interest of road safety, it was “not inclined” to accept IRDAI’s and the General Insurance Council’s recommendation against extending the period. The new directions aim to improve compliance.
New Enforcement Directives
The nationwide overhaul will cover a mandatory four-layer policy structure and directions to reduce the number of two-wheelers running uninsured on Indian roads. Directives include:
- A mandatory six-year third-party motor insurance cover for all two-wheelers
- Integration of Automatic Number Plate Recognition (ANPR) cameras with the Insurance Information Bureau and VAHAN databases
- State police to be equipped with handheld or mobile devices to access VAHAN databases and vehicle insurance details
- IRDAI and the Ministry of Road Transport and Highways to explore pilot projects for a “No insurance, No fuel” system
- Uniform policy structure for optional covers to be offered to potential vehicle-owners through a consumer-friendly information sheet
Cost Hikes for New Vehicle-Owners of Bikes & Two-Wheelers
First-time buyers of bikes, scooters and any other two-wheeler should expect a rise in the upfront total premium cost due to the extra year added to the insurance cover.
| Engine Capacity | Estimated 6-Year Third-Party Bike Insurance Rate |
| 75 cc to 150 cc | ₹4,284 |
| 150 cc to 350 cc | ₹8,196 |
| Exceeding 350 cc | ₹16,824 |
Paras Pasricha, Head of Motor Insurance at PolicyBazaar, said in an interview with The Mint that vehicle owners looking to purchase and convert their 6-year third-party cover into a comprehensive cover should also expect higher costs. The following will influence the additional premium for a comprehensive two-wheeler policy:
- The vehicle model
- Insured Declared Value (IDV)
- Insurer underwriting, and
- Other add-on covers
New two-wheeler owners should compare various motor insurance policies through insurance platforms before filling out the customer option information sheet at the dealership. A mandatory 6-year third-party cover, along with a Standalone Own Damage (SAOD) policy and personal accident cover, can ensure optimal vehicle and owner safety while guaranteeing compliance.
IRDAI is expected to implement the directives and issue new pricing structures formally soon. So, the copy will be updated once the regulatory body notifies new enforcement frameworks.
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