The bike insurance premium is calculated on the basis of the below factors:- Cubic capacity – The major factor deciding the third party premium of your bike is the cubic capacity of the bike. Higher the cubic capacity, higher would be the premium. Make & Model – The premium of your bike depends on the make and model of the bike. Few makes of bikes have higher premium compared to the other makes. For instance Yamaha bikes have higher premium when compared to Bajaj bikes for the same cubic capacity. This is due to the cost of replacement of parts being high at the time of claim for few make and models. Date of registration – The date of registration is used to calculate the age of the bike. The premium depends on the age of the vehicle. Insured Declared Value - IDV is the sum insured of the bike which is agreed between the insured and the insurance company. Higher the IDV, higher would be the premium. RTO – The place of registration of bike also plays an important role in deciding the premium. For the purpose of premium calculation cities are divided in two zones; Zone A- which covers all the capitals of states, Zone –B which includes all other cities other than that of Zone-A.