INSURANCE :

You may find travel insurance to cover you from your home country (you can pay an extra premium). The terms (conditions) will generally be quite simple and may read as follows:

1. You are wearing a helmet, 

2. The motorcycle has an engine capacity of 200cc or less and whilst in control, 

3. You hold a licence valid in the relevant country.

a. HELMET. Indonesia has an Indonesian National Standard (SNI) for helmets, so riding around with a leather helmet with horns on it not only is illegal here, it may be grounds for your insurer to deny a claim.
b. Engine capacity: Indonesian Scooters are a minimum of 110 cc, so you are covered there IF you have a motorcyle license. In Control.  (wording straight out of one insurance policy: Conditions: claims involving self inflicted injury or condition, stress, travel exhaustion, any conduct engaged in whilst under the influence or effect of alcohol)….
c. LICENCE, valid here, you can use an international license here in Bali, you cannot use the license from your own country (although sometimes you may be asked to show both). So, you take your motorcycle license to the relevant licensing body in your home country and apply for an International license.
(If you don’t have a motorcycle license in your home country your International License will be marked for a car only and you cannot ride a “scooter” here). In Australia for example a scooter is considered 50cc or under and the engine is not capable of a speed higher than 50kph.

LAWS

1. Have a license for a motorbike over 125cc (there are no 50cc motorbikes in Bali)

2. Anyone will rent you a motorbike these days, but you still need the rental agreement, insurance and rego papers or you may find even though you have done nothing wrong your bike will be taken away and you will be paying for a taxi back to the bike owner to explain he has to go pick it up (if he is the owner).

3. Wear a SNI helmet as per above

4. Road rules, there are many, you should really learn them before driving here, such as when to use lights, who gives way to who, how many passengers, not stopping over the white line at traffic lights etc etc etc etc

PENALTIES:.Bribery IS ILLIGAL pure and simple, it does not matter that it has been done by others, it is illegal. Illegal activities can mean further fines, deportation or even jail time.

There are official fees Section 281 Any person driving a motor vehicle on the road that does not possess a drivers license per Article 77 paragraph (1) shall be punished with imprisonment for a maximum of 4 (four) months or fined Rp1,000,000 (one million Rupiah). **(replaces previous penalty of Rp2,000,000 or imprisonment of 2 (two) months Article 59 - (1) of 1969)

If you try to “bribe” the wrong police officer, you may find yourself in a lot of trouble as many police now are actually being watched by “anti corruption police”.

If you follow all the rules and licensed you will not pay anything, you will be given a friendly smile and sent away, one cheeky police officer may ask for cigarette money just laugh politely and tell him smoking is bad for you.

ROAD FATALITIES: Now, you really are quite lucky if you actually die in some cases as the need here for a crowd to gather and give the body a bit of a kick to make sure they are dead or take selfies with the body just makes the whole idea of waiting for an ambulance, did I say ambulance, in this traffic; you are sometimes better off being thrown on the back of a bike to get through traffic. Watch out if you are unconscious, it is common to roll you over, straighten you up, pull off your helmet, slap your face a bit and then decide who will take you to hospital (no-one wants to pay your bill or be blamed for it so the getting to hospital but can be difficult)

AMBULANCE, that little bus with flashing lights that in a Western Country you must get out of the way for. Well, over here a lot of people are still used to an ambulance only being used to transport the dead to the morgue, so what’s the hurry, why should we get out of way, there’s no way they are in a hurry, they are already dead.
.
FATALITIES, the figure thrown around at the end of last year was nearly 3000 people died on the roads in Bali in 2015 (48,000 in Indonesia) That’s dead people, not maimed, not accidents, people who actually died, now if you did have an accident and successfully make it to hospital, then back to the question, do you have insurance?

HOSPITALS The good international hospitals here will not treat you until you can prove insurance or pay cash up front. What if they can’t treat you here and you need to be airlifted to the nearest hospital that can?….figures start at $80,0000 up to $125,000 depending on the patients needs during flight.

INSURANCE POLICY FINE PRINT: Check your policy as some insist that a Pillion Passenger also has a license : "as the driver or pillion passenger" so with this wording you will not be covered as a passenger on a motorbike unless you have paid the extra premium (and, the wording is ambiguous as it lists the conditions as having a license etc). also, some insurance companies insist on appropriate clothing so a claim could be denied for wearing a t-short and shorts (yes, its hot but not as safe).