Third-party bike insurance is a type of two-wheeler insurance policy that covers the financial liability of a bike owner for causing bodily injuries or property damages to a third-party person while driving. In India, every two-wheeler owner must hold this policy while riding on public roads.
Read moreWith the increasing road fatalities, the importance of insuring the motor vehicle has also increased. As per the latest report of the National Crime Records Bureau (NCRB), nearly 70,000 people registered in two-wheeler road accidents 2021.
Therefore, having a third-party bike insurance is mandatory in India as per the Indian Motor Vehicles Act 1988. A two-wheeler owner needs this cover as it compensates the injured third-party for any loss or damages caused to them by the insured vehicle.
The compensation offered in case of third-party death and property damage is limited up to Rs 7.5 lakh and depends upon the age, profession, income, and status of the third party.
A third-party policy protects against several unforeseen third-party liabilities and its premium is comparatively more affordable than any other plans. Here are the key benefits of a third-party insurance policy-
It gives legal and financial assistance to pay compensation while settling the claims arising out of third-party liabilities in an accident.
In case of property damage to a third party, this policy recompenses up to Rs 7.5 lakh to the third party.
As per the Indian Motor Vehicle Act, 1988, it is compulsory for two-wheeler riders to own at least a third-party cover for their vehicles.
Third-party insurance premiums are comparatively cheaper and the cost is decided by the IRDAI every year.
A Personal Accident (PA) cover helps in covering the injury or loss sustained to the owner-driver during an accident. A standard PA cover of Rs 15 lakh is provided, and the scope of coverage can be increased by taking it as an add-on cover.
In India, the penalty for riding a two-wheeler without insurance is Rs 2,000, if it happens for the first time and Rs 4,000 for the second time. Hence, holding mandatory third-party insurance saves you from paying hefty fines and gives you a sense of security during the ride.
A third-party policy is also known as an 'Act Only' policy and provides the coverage for the following events-
Here are some exclusions where you will not receive any compensation under your third-party insurance-
The compensation is subjected to the owner-driver who holds a valid Driving License and RC of the insured bike. Here is a table showing the scale of compensation offered under a third-party bike insurance cover to the policyholder-
Nature of Injury | Scale of Compensation |
In case of death | 100% |
In case loss of two limbs or sights of two eyes | 100% |
In case loss of one limb and sight of one eye | 50% |
In case of permanent total disability from injuries other than injuries mentioned above | 100% |
Note- the percentage may vary on offerings from insurer to insurer in case of damage to body parts.
The premium rates of third-party bike insurance are determined by the two-wheeler's engine capacity (cc). Moreover, the rates are announced by the IRDAI and keep on changing by 10-20% every year.
The third-party bike insurance rates applicable from 1st June 2022 are highlighted in below table-
Engine Capacity (in CC) | Third-party Bike Insurance Premium Rates (in Rs) |
Up to 75 CC | Rs 538 |
Between 75 to 150 CC | Rs 714 |
Between 150 to 350 CC | Rs 1366 |
Above 350 CC | Rs 2804 |
In a recent order from the Supreme Court, all General Insurance Companies are instructed to offer only long-term third-party motor insurance across the country for new bikes. By following the court order, IRDAI has directed the Insurance Companies to offer mandatory three-year third-party insurance for cars and a five-year policy for two-wheelers.
Henceforth, every two-wheeler owner has to insure their newly bought possession with a five-year third-party insurance policy. The change in policy benefits or terms and conditions will be intimated accordingly if any.
Many two-wheeler owners forget to renew their policy before the expiry date. With the introduction of this new rule, there is no hassle of renewing the policy every year. It also offers price stability as the users need not to pay the premiums annually.
Most importantly, with this policy, one can avoid the annual hike in premiums as it is set for a period of five years. However, there is a huge difference in the premium earlier and now. It significantly raises the third-party bike insurance rate. The below rates are applicable with effect from 1st June 2022-
Engine Capacity (in CC) | Previous Third-party Bike Insurance Rates for an Annual Policy (in Rs) | Current Third-party Bike Insurance Rates for a 5-year Policy (in Rs) |
Up to 75 CC | Rs 1,045 | Rs 2,901 |
Between 75 to 150 CC | Rs 3,285 | Rs 3,851 |
Between 150 to 350 CC | Rs 5,453 | Rs 7,365 |
Above 350 CC | Rs 13,034 | Rs 15,117 |
Third-Party bike insurance can be purchased either online or offline. However, with the advent of the internet people prefer buying insurance online.
Buying online 3rd party bike insurance is a very convenient and cost-effective way.
All you need to do is visit the official website of the insurer like Policybazaar.com-
In case you are not familiar with online purchasing, you can visit the nearest branch of the insurance company and approach the agent.
They will guide you through the insurance plan that meets your requirement. If everything goes well, you can pay the premiums through cash or bank cheque and make your purchase successful.
Most motor insurance companies facilitate online renewal of third-party bike insurance policies for their customers. Moreover, you can check third-party bike insurance premiums by IRDAI. As renewal is the most crucial time to take a call, the insurers expect a timely renewal of the insurance policy.
In this regard, if you have purchased the policy from Policybazaar.com, below are the steps mentioned to renew it online-
The claim procedure for third-party bike insurance varies as per the situation.
Both cases have a different set of steps to register a claim under third-party bike insurance. Take a look-
(A). Inform the insurance provider and register your request. You can call on the helpline number or speak to our experts at Policybazaar.com
(B). In case you have bought a policy from another insurer, provide documentary evidence for the same. You may be asked for other related paperwork to complete
(C). The insurer will cancel the policy after receiving the details and verifying the documents
(D). The premiums will be returned after deducting a small amount on a pro-rata base.
1. Any damages caused to the own vehicle in an accident
2. Any liability arising from contractual liability
3. Loss or damage due to war or warlike situation, nuclear explosion, civil war, or other malicious activities
4. If the driver is not carrying a valid driving license at the time of the accident
5. The accident happened while driving under the influence of alcohol or other intoxicating substances.
1.Duly filled and signed two-wheeler claim form
2. Copy of bike insurance policy document or cover note
3. Copy of your Driving License (DL)
4. Copy of Registration Certificate (RC)
5. Copy of the FIR or Police Panchanama
6. Other documents (varies from insurer to insurer)
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If you are planning to buy bike insurance online, you must haveInsurance
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
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*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.