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Compulsory and Voluntary Deductibles in Motorcycle Insurance 

We always look for the best product or service. So, getting insurance for a bike serves as no exception to this rule. The most important aspect when you select or compare two-wheeler insurance should be the coverage that it offers to your bike. However, pricing too, plays a crucial role when selecting a new bike insurance policy.

When purchasing a policy, we always look for an affordable or cheap bike insurance policy with maximum coverage or benefits. To reduce your premium amount, bike insurance policies come with certain clauses on compulsory and voluntary deductibles. 

Let us discuss them in detail.

 What is Compulsory Deductible Motorcycle Insurance?  

A compulsory deductible in two-wheeler insurance or car insurance is mandatory and is included in all insurance plan policy terms. The amount of a compulsory deductible is fixed for every insurance policy and should be paid before the insurance company pays for the balance of the cost of repairs. 

 Discount on Insurance Premium on Compulsory Deductible  

Engine CapacityDiscount Rate 
Car with less than 1500cc₹1,000
Cars with more than  1500cc₹2,000

Things To Consider About Compulsory Deductible Bike Insurance  

  1. A compulsory deductible is mandatory. 
  2. The amount is non-changeable. 
  3. Avoids all sorts of minor claims as you have to pay from your pocket. 
  4. The IRDAI has set a compulsory deductible for bikes at ₹100 for every claim. 

 What is Voluntary Deductible Motorcycle Insurance?  

A voluntary deductible in bike insurance is generally optional. The amount of voluntary deductibles is fixed by the insurer, contrary to the compulsory deductible which is fixed by IRDAI. It is the amount that you pay from your pocket meant for future bike repairs, in addition to the obligatory compulsory deductible. 

 Discount Rate on Insurance Premium for Voluntary Deductible 

Consider the table below that displays the discount on premiums according to the chosen voluntary deductible amount.

Voluntary Deductible (Amount)Discount Rate 
₹2,50020%, and you will get a maximum of ₹750
₹5,00025%, and you will get a maximum of ₹1,500
₹7,50030%, and you will get a maximum of ₹2,000
₹15,00035%, and you will get a maximum of ₹2,500

Things to Consider About Voluntary Deductible in Online Two-Wheeler Policy  

  1. Only if you file a claim can you pay the voluntary deductible in that case. Also, you do not have to pay the amount until your claim is not approved. 
  2. When you select a voluntary deductible, the provision of a compulsory deductible remains active. So, at the time of claim settlement, both the compulsory and voluntary deductibles need to be paid. 
  3. All riders and policyholders have the option to utilise the voluntary deductible. It proves particularly beneficial for policyholders who rarely file claims. Conversely, policyholders who frequently ride in accident-prone areas or frequently file bike insurance claims may not find voluntary deductibles advantageous.

 Difference between Compulsory and Voluntary Deductible  

Factors Compulsory Deductible Voluntary Deductible
DefinitionThe policyholder has to mandatorily pay a certain amount as deductible at the time of claims. The policyholder may need to cover the pre decided voluntary sum. (only if the policyholder has opted for the same) at the time of the claim. 
Also calledCompulsory Excess Voluntary Excess 
Objective Prevents you from raising minor claims.The main intention is to lower the amount of policy premium. 

Who Should and Should Not Opt for Voluntary Deductible?   

  1. Those who are completely new to driving (should not opt for voluntary deduction)
  2. Those with Financial Issues (should not opt for voluntary deduction)
  3. Experienced Drivers (Should opt for voluntary deduction)
  4. Financially Sound Individuals  (Should opt for voluntary deduction)

 Tips to Remember Before Choosing Any Deductible 

  1. Look at your savings and evaluate your financial capability. If you do not have funds, you may not be able to opt for voluntary deductible comfortably.. 
  2. Think about how often you file your insurance claims. In this case, if you live in an accident-prone area where collisions and thefts are common, opting for a voluntary deductible is wise. 


To sum up, before you choose the appropriate two-wheeler insurance policy, consider all the factors including compulsory and voluntary deductible insurance. Also, before deciding to buy a bike policy online make sure you read all the information carefully to have clarity about the policy inclusions, exclusions, terms and conditions. 

 Frequently Asked Questions  

  1. Does voluntary deductible help in reducing the premium? 

Yes, it does for a premium of up to ₹2,500 as per the terms and conditions of the policy. 

  1. Is the option of voluntary deductible available for old vehicles? 

Yes, the option of voluntary deductible is applicable for both new as well as old vehicles. 

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