How Does Bike Modification Impact Two-Wheeler Insurance Premium


5 min read

Updated on Aug 10, 2023

Is Two-Wheeler Insurance Premium Get Affected by Bike Modification in India ? Bought a new bike and you are still not happy with it? The best option for you is to go for a bike modification. There is nothing wrong with improving the bike you own in terms of its performance and looks. The only mistake you need to avoid is not checking the RTO rules for bike modification before going for any such bike modification. No matter, whichever, two-wheeler insurance plan you have bought, there are always chances that the premium of such insurance will increase if you modify your bike somehow. Why does this happen and how?

What’s Inside

In this post, we aim to help you understand how does bike modification impact your two-wheeler insurance?

Why Buy Two-Wheeler Insurance?

Whether you agree or not, driving a two-wheeler is always riskier than driving a four-wheeler vehicle. You as a two-wheeler driver put not just yourself, but others on the road, and your vehicle in danger every time you drive your bike or two-wheeler. To minimize the risk associated with a two-wheeler owing to an accident, injury, loss, or third-party liability, bikers are supposed to buy a two-wheeler insurance.

These days, all reputed insurance companies provide two-wheeler insurance online. It is their way to encourage more and more people to opt for bike insurance in a hassle-free manner with minimum or zero paperwork. Before buying two-wheeler insurance, make sure you calculate the premium amount to be paid using a reliable online two-wheeler insurance premium calculator.

What is Bike Modification?

Sometimes the bike a person buys doesn’t fit well in terms of performance or aesthetics. Sometimes, if both these parameters are satisfactory, the biker is worried for the bike to get stolen. So, the one solution to all these three problems of performance, aesthetics, and robbery, is an appropriate bike modification. With a slight modification to the bike, the vehicle can satisfy you in terms of performance and aesthetics. Moreover, with genuine security systems, you can prevent the chances of your bike robbery. Such is the importance of bike modification for a modern-day biker.

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Types of Legal Bike Modification in India

Now that you know what bike modification is, it is time you also learn about the different types of bike modification in India. Legal bike modification in India can be of three main types and they are:

1. Performance Modifications: 

The most common bike modification that a biker usually opts for is in terms of performance. In order to speed up and improve the performance of their bike, bikers install speed-increasing mechanisms and adjustments to their bikes. Naturally, an increased speed of the bike increases the chances of an accident too. So, as per the bike modification rules in Indiathe rate of bike insurance tends to increase for such bike modifications.

2. Aesthetics Modifications: 

Many biker buy a bike but later feel unhappy about the appearance of the same bike. They then opt for aesthetic modifications for their bikes and either install a new seat cover, add headlights, or even change the bike color. With an enhanced look, the chances of stealing the bike increase. As per the general RTO rules for bike modification, when there is an increase in the chance of a bike robbery due to aesthetic bike modification, the cost of bike insurance also increases.

3. Security Modifications:

The third common type of bike modification that bikers get for their bike is a security modification. For every biker, a bike is a prized possession and he/ she doesn’t want it to get stolen away. Thus, they opt for installing the best security systems like high-tech alarms and locks. Those who opt to install ARAI or Automotive Research Association of India certified anti-theft gadgets and systems on their bikes are in a win-win situation. With these gadgets, the chances of their bike robbery decrease, and so does the rate of bike insurance. However, as we said this applies only if the security systems are ARAI-approved systems.

Impact of Bike Modification on Two-Wheeler Insurance

You just got an idea of how bike modification can impact your two-wheeler insurance. With every big or small bike modification, there are chances of an increase or decrease in your two-wheeler insurance premium amount. However, remember that not all types of bike modifications alter the rate of your two-wheeler insurance premium. Some of the ways in which a bike modification may alter your two-wheeler insurance are:

1. ARAI-Certified Security Systems: 

Surprisingly, some bike modifications tend to even decrease your premium amount, like installing ARAI-certified security systems on your bike. These systems lower the chances of bike robbery, and as a result lower down the insurance premium rates too.

2. Bike Modification for Disability: 

Similarly, if you modify your bike for some disability reason, chances are that the insurer won’t increase your premium amount. There is a possibility of the insurer offering you some discount on your two-wheeler insurance premium for a bike modification for disability reasons.

3. Bike Insurance Rate Increases with Increased IDV: 

Another thing to note is that whenever a bike modification increases the IDV or Insured Declared Value of your bike, the insurance premium is going to increase for sure.

Best Two-Wheeler Bike Insurance Companies

Here is a list of the best two-wheeler bike insurance companies that may alter the insurance premium rate based on your bike modification:


In a nutshell, one thing is clear insurance policies on bike modification go hand-in-hand. Whatever bike modifications you choose will impact your two-wheeler insurance premium amount in some or the other way. If you wish to lower your two-wheeler insurance premium amount, you must install ARAI-certified security systems on your bike or two-wheeler. Other than that, if you increase the bike’s performance or aesthetics, be ready to shell out more on the bike insurance premium amount. A quick piece of advice for you here is that whenever you are itching for some bike modifications, do check out the Insurance Policies on Bike Modifications India and make a guided decision.

Also read:

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FAQs: Bike Modification Impact on Two-Wheeler Insurance

Can we claim insurance on modified bike?

Just keep in mind that any modifications you make, no matter how small, will probably result in a higher premium. If you fail to notify the insurance provider of the changes, your insurer may decline to pay claims or even terminate coverage.

Is bike modification legal or illegal?

Only minor alterations are permitted, even with the Regional Transport Officer's approval. You must get new modified parts approved by the ARAI (Automotive Research Authority of India) and obtain an endorsed registration certificate in order to make those minor modifications legal.

Is it good to modify your bike?

Many riders decide to alter the bike's fiber components. You should be aware that doing so may have an impact on the bike's performance. This is due to the fact that the manufacturers take a lot of factors into account when designing the bike, such as aerodynamics.

Does bike modification void insurance?

Remember that even small bike modifications can result in an increase in the price of two-wheeler insurance. Your claim could be rejected or your insurance could be terminated if you fail to notify your insurer of such changes.

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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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