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Yes, an old bike or car can have comprehensive (package) insurance. There is no rule that limits it to new vehicles. Since 1 September 2019 IRDAI has required insurers to offer stand-alone own damage (OD) cover for cars and two-wheelers, “both new and old” (IRDAI circular, 21 June 2019, para 3(a)). What changes with age is the detail: the IDV goes down, the depreciation cut on replaced parts goes up, and any break in cover means an inspection. This page explains each of these with a worked example.
What is comprehensive insurance?
It is one policy with two parts: (1) third party cover for harm your vehicle causes to others, which the law requires (see our third party insurance guide), and (2) own damage (OD) cover for your own vehicle. IRDAI’s handbook calls it a “package policy” (IRDAI Motor Insurance Handbook).
| Usually covered under OD | Usually excluded |
|---|---|
| Accident by external means | Driving without a valid licence |
| Fire, explosion, self-ignition, lightning | Driving under the influence of alcohol or drugs |
| Theft, burglary, housebreaking | Electrical or mechanical breakdown |
| Flood, cyclone, hailstorm, earthquake, landslide | Accidents outside the geographical area in the policy |
| Riot, strike, malicious damage, terrorism | Use of the vehicle for unlawful purposes |
| Transit by road, rail, waterway, lift or air | Normal wear and tear |
This list is drawn from the IRDAI handbook and a standard form two-wheeler package policy wording filed on IRDAI’s site. Your own policy wording is what decides your cover.
What changes when the vehicle is old?
| Point | New vehicle | Old vehicle |
|---|---|---|
| IDV (the most OD will pay) | Close to the showroom price, small depreciation | Lower. For vehicles over 5 years old, and for models no longer made, the IDV is agreed between you and the insurer |
| Depreciation on replaced parts | Little or none on metal parts | Rises with age (table below); you pay that share |
| Break in cover | Even a one-day lapse means the vehicle must be inspected before new OD cover; after 90 days the NCB is also lost (IRDAI handbook) | |
| Add-ons such as zero depreciation | Which add-on is offered for which vehicle age depends on the insurer’s product; each add-on’s premium must be shown separately (Protection of Policyholders’ Interests (PPHI) Master Circular, page 130) | |
| Total loss | If repair cost exceeds 75% of IDV, the vehicle is treated as a constructive total loss and the IDV is paid (standard form). With a lower IDV, an old vehicle’s repair cost can cross 75% sooner than a new one’s | |
How is the IDV worked out?
IDV is the manufacturer’s current selling price less depreciation for the vehicle’s age. Under IRDAI’s current rules, each insurer sets its own IDV method with approval of its product committee and must publish it on its website; the basis must be in your Customer Information Sheet (CIS) with a worked illustration (PPHI Master Circular, 5 September 2024, page 130). So the scale can differ between insurers. One long-used scale, from the standard two-wheeler form, looks like this:
| Age of vehicle | Depreciation for IDV |
|---|---|
| Up to 6 months | 5% |
| 6 months to 1 year | 15% |
| 1 to 2 years | 20% |
| 2 to 3 years | 30% |
| 3 to 4 years | 40% |
| 4 to 5 years | 50% |
| Over 5 years, or model discontinued | IDV by agreement between insurer and owner |
Depreciation on parts in a repair claim
Note: this is not the IDV depreciation above. It is a separate cut made on replaced parts in a repair bill.
In a partial loss, the insurer pays for replaced parts after cutting depreciation. The rates below are from the older two-wheeler standard wording on IRDAI’s site. Each insurer’s own wording may now set different rates, so check the ones in your policy:
- Rubber, nylon and plastic parts, tyres, tubes and batteries: 50%
- Fibreglass parts: 30%; glass parts: nil
- Other parts (metal and so on), by vehicle age: nil up to 6 months, 5% at 6 months–1 year, 10% at 1–2 years, 15% at 2–3 years, 25% at 3–4 years, 35% at 4–5 years, 40% at 5–10 years, 50% beyond 10 years
- Painting: 50% on the material cost
- Non-OEM parts used in repairs: no depreciation may be applied (PPHI Master Circular, page 130)
Worked example (imaginary)
Ramesh in Karimnagar has a 7-year-old motorcycle. He and the insurer agree an IDV of ₹20,000 and he takes a comprehensive policy. A minor accident leads to a ₹10,000 repair bill. Assume a compulsory excess of ₹100 (an imaginary figure; the real one is in your policy schedule). The depreciation rates are those of the two-wheeler standard form above; your policy’s own rates are in its wording.
| Part of the bill | Amount | Depreciation | Insurer’s figure |
|---|---|---|---|
| Plastic parts (headlamp, side panels, mudguard) | ₹4,000 | 50% = ₹2,000 | ₹2,000 |
| Metal parts (5–10 years) | ₹3,000 | 40% = ₹1,200 | ₹1,800 |
| Labour | ₹3,000 | None (labour is not in the depreciation list above) | ₹3,000 |
| Compulsory excess | — | — | – ₹100 |
| Insurer pays (approx.) | ₹10,000 | ₹6,700 |
Ramesh pays the remaining ₹3,300 (₹3,200 depreciation plus ₹100 excess). With a zero depreciation add-on, if its terms apply, the ₹3,200 depreciation cut would not be made. Whether that add-on is available for a 7-year-old motorcycle, and at what premium, depends on the insurer.
Surveyor: a motor loss of ₹50,000 or more must be assessed by a registered surveyor, and the insurer must allot the surveyor within 24 hours of the claim being reported (PPHI Master Circular, page 133). For a small claim like Ramesh’s, ask the insurer how the loss will be assessed.
Already have 3- or 5-year third party cover from purchase?
If you paid third party cover for 3 years (car) or 5 years (two-wheeler) when you bought the vehicle, you can add stand-alone OD cover year by year. OD is issued only while third party cover is in force, and the OD policy records your third party policy number and dates. The two can be with different insurers (IRDAI circular, 21 June 2019, paras 3(b), 3(c)).
No Claim Bonus (NCB) on an older vehicle
- Each claim-free year earns a discount on the OD premium at the next renewal: 20%, then 25%, 35%, 45%, up to 50% after five claim-free years in a row. There is no NCB on the third party premium (standard form; IRDAI handbook).
- A claim resets the NCB at the next renewal, and so does a lapse of more than 90 days.
- NCB belongs to the owner, not the vehicle. You can keep it when you change insurer by showing the renewal notice or a letter confirming your NCB. It does not pass to the buyer when you sell; you can use it on your next vehicle (IRDAI handbook; check your insurer’s process and time limits).
Buying or selling a used vehicle
- Third party cover passes to the new owner from the date of transfer; the new owner must apply to the insurer within 14 days (MV Act section 157).
- For a comprehensive policy, IRDAI’s handbook says the change of ownership must be recorded within 14 days, or no own damage claim will be paid. The RC and the policy must carry the same name and address. Transfer needs a fresh proposal form and a small fee, and the new owner pays back the NCB difference for the rest of the policy period.
Can I do it online?
Many insurers offer renewal on their official website or app. How a lapsed vehicle is inspected (in person or online) depends on the insurer, so ask first. E-policies must be digitally signed (PPHI Master Circular). Stay safe: type the insurer’s web address yourself, and ignore “cheap insurance for old bikes” links sent by SMS or WhatsApp.
Key terms
| Term | Plain meaning |
|---|---|
| Comprehensive / package | Third party and own damage together in one policy |
| IDV | The most the OD cover pays for your vehicle; used for total loss and theft |
| Depreciation | Loss of value with age; the share cut from parts in a repair claim |
| Compulsory excess / deductible | The amount you bear in every claim |
| NCB | Discount on OD premium for claim-free years (20%–50%) |
| Constructive total loss (CTL) | Repair cost above 75% of IDV, treated as a total loss |
| Inspection | A check of the vehicle before cover restarts after a lapse |
Common beliefs and the facts
| Belief | Fact |
|---|---|
| “Comprehensive is only for new vehicles.” | Old vehicles are covered too; IRDAI’s 2019 circular says “both new and old”. |
| “With comprehensive cover, the whole repair bill is paid.” | Depreciation and excess are deducted, and the cut is larger on older vehicles. |
| “The higher the IDV I declare, the better.” | IDV should reflect the vehicle’s current market value (IRDAI handbook), and the premium depends on it. |
| “Engine failure on its own is covered.” | Mechanical and electrical breakdown is usually excluded. |
| “A day’s delay in renewal doesn’t matter.” | There is no grace period; a one-day lapse means no cover for that time and an inspection. |
What to check before insuring an older vehicle
- What is the IDV, how was it worked out, and does the CIS show an example?
- What parts depreciation rates and compulsory excess apply? Is there any extra excess because of age?
- Is the add-on you want available for your vehicle’s age, and is its premium shown separately?
- When does the policy end, and are you renewing before that date?
- Is your NCB correct? If you are changing insurer, do you have NCB proof?
- Do the RC and policy match in name, address, engine and chassis numbers? For a used vehicle, was the transfer done within 14 days?
- Has a CNG or LPG kit been fitted? Is it recorded in the RC and covered by the insurer (IRDAI handbook)?
- Are you buying through the insurer’s official website, app or a licensed agent?
Sources
- IRDAI circular IRDAI/NL/CIR/MOTOD/095/06/2019, 21 June 2019: para 3(a) — stand-alone OD for new and old cars and two-wheelers from 1 September 2019; 3(b), 3(c) — OD only with TP in force
- IRDAI Master Circular on Protection of Policyholders’ Interests, 5 September 2024: page 130 — IDV basis on insurer’s website and in CIS; add-on premium shown separately; no depreciation on non-OEM parts; digital signature; page 133 — survey by a registered surveyor mandatory for motor loss of ₹50,000 or more, surveyor allotted within 24 hours
- Standard form two-wheeler package policy (wording filed on IRDAI’s site): IDV depreciation scale, IDV by agreement beyond 5 years, parts depreciation, 75% CTL, NCB 20–50%
- IRDAI Motor Insurance Handbook (general information; older publication): cover, exclusions, inspection after a lapse, 90-day NCB rule, NCB transfer, 14-day ownership change, CNG/LPG kits
- Motor Vehicles (Amendment) Act, 2019: section 157 (transfer of insurance, 14 days)
All sources above were checked on 27 October 2026. Last updated: 27 October 2026.