What is Third Party Bike Insurance
Third-party bike insurance is a mandatory two wheeler insurance policy under the Motor Vehicles Act, 1988. It provides financial protection if the policyholder's bike causes injury, death, or property damage to another person or a third party in a road accident. The insurance company pays for compensation and legal expenses related to such third-party claims. However, this policy does not cover damage to your own two-wheeler.
In India, all bike and scooter owners must have a valid third-party bike policy. Riding without one can result in a fine of ₹2,000 and/or up to 3 months imprisonment for the first offence, and ₹4,000 for repeat offences.
Do you know? Over 60% of two-wheelers in India still run without valid third-party insurance, despite it being legally mandatory.
How Third-Party Bike Insurance Works?
Its primary purpose is to safeguard you from third-party claims that may arise due to accidental injury, death, or property damage caused by your bike.
This policy steps in to cover the following:
Instead of you paying the compensation for the loss of third-party, your insurance company handles it.
Key Features of Third-Party Bike Insurance
Why Third-Party Bike Insurance is Mandatory?
The primary reason for making third-party bike insurance policy mandatory is to ensure the financial protection of third parties against fatal injury, death, or property damage in a road accident.
Without this coverage, either the victims would have to bear all losses or damages on their own, or the at-fault bike rider would have to pay huge out-of-pocket expenses and legal liabilities. It covers injury, death, or property damage to third parties caused by the insured bike. TP bike insurance offers compensation of up to ₹1 lakh for damage to the third-party property, whereas in case of any case of death or bodily injuries to a person because of your bike, the claim amount is decided by the Motor Accident Claims Tribunal (MACT).
Therefore, to avoid this situation and make a safer transportation environment, the Indian government has made this policy compulsory. Moreover, riding your two-wheeler without a third-party bike insurance policy leads to a fine of ₹2,000 and/or imprisonment of up to 3 months.
If you want to explore different plan options and compare premiums, you can learn more about bike insurance here.
Third-Party Premium Rates in India
As per the IRDAI guidelines, the third-party bike insurance premium rates are given below for single and multi-year bike insurance policies. The price of third-party bike insurance is decided based on the engine/battery capacity of the two-wheeler:
- Regular bike
- Electric bike
Coverage Under Third-Party Bike Insurance
Covered in Third-Party Bike Insurance
Not Covered in Third-Party Bike Insurance
Third-Party Compensation: How Does it Work?
- Coverage
- Compensation
Disadvantages of Third-party Bike Insurance
Limited Coverage
No Customisations Available
High Out-of-Pocket Expenses
Third-Party vs Comprehensive Bike Insurance
The e below highlights the difference between a third-party and a comprehensive bike insurance policy.
How to Buy/Renew Third Party Bike Insurance Online?
Buying third-party bike insurance online is easier. By following the steps below, you can easily buy from Policybazaar.com:
- At Policybazaar.com, go to bike insurance or simply choose the option 'Third-Party Bike Insurance'.
- Enter your bike's registration number and click 'View Prices'. If you're buying insurance for a new bike, select 'Bought a New Bike' and provide details like make, model, variant, and year of manufacture.
- Compare and choose a plan from multiple quotes offered by insurers in India after adding the mandatory Personal Accident (PA) cover.
- Pay the displayed 3rd party bike insurance premium online using a credit/debit card, net banking, or UPI.
- At last, you will receive a copy of the third-party bike insurance policy at your registered email ID.
Do you know this fact?
How to File a Third Party Bike Insurance Claim?
To file a third-party claim, it is important to know 'who is at fault' or 'who was responsible for the accident'.
To assist you, here are two possible situations for raising a third-party claim:
If another rider, driver, or vehicle damages your insured bike, you must follow the steps below:
In case your bike causes injury to someone or damages another person's property (third-party), here's what you should do:
Things to Keep in Mind While Filing Third-Party Claims
Buying Third party bike insurance online is very convenient and cost-effective. By following the below steps, you can easily buy from Policybazaar.com:
Documents Required for Third-Party Bike Insurance Claims
The following documents are required for third-party bike insurance claims in India:
Why Choose Policybazaar for Third-Party Bike Insurance?
Policybazaar.com makes it quick and convenient to stay legally compliant. Here are the reasons why you should buy third-party bike insurance online from us:
Bike Insurance Companies
Third Party Bike Insurance FAQs
Q. Can I ride my bike with third-party bike insurance only?
Ans: Yes, to ride your bike legally on Indian roads, you must have only a third-party bike insurance policy.Q. What is 5 year 3rd party insurance?
Ans: According to the Supreme Court of India, 5-year third-party bike insurance is mandatory. According to the law, all new bike owners must have a long-term liability policy to cover damages caused to third parties.Q. Which insurance is compulsory for a 2-wheeler?
Ans: According to the Motor Vehicles Act, 1988, buying third-party bike insurance is mandatory in India.Q. What are the three types of bike insurance?
Ans: The three types of bike insurance policies offered by insurers are:1. Third-party bike insurance
2. Standalone own-damage bike insurance
3. Comprehensive bike insurance
Q. Can I buy an own-damage policy with third-party insurance for my bike?
Ans: Yes, you can buy your bike's own damage with a third-party insurance policy without any hassles. This helps in enhancing the policy coverage.Q. Is third party motorcycle insurance worth it?
Ans: Yes, this policy ensures legal compliance and offers financial protection when you are involved in an accident, causing damages or injuries to a third-party person or vehicle.Q. How is third party insurance calculated?
Ans: It is calculated based on the bike's engine cubic capacity (cc) and is predetermined by IRDAI. This policy's premium is uniform across all insurers.Q. Is FIR necessary for a third-party bike insurance claim?
Ans: Yes, an FIR is mandatory if you file a claim against your third-party bike insurance.
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