Third Party Bike Insurance

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.

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Significance of Third-Party Bike Insurance

With the increasing number of road fatalities, the importance of insuring motor vehicles 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 in 2021.

Therefore, having 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 to up to Rs 7.5 lakh and depends upon the age, profession, income, and status of the third party.

Third-Party Insurance Premium Rates

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 for a year are displayed in below table-

Engine Capacity (in CC)	Annual 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

Two Wheeler Insurers

Bajaj Allianz Two Wheeler Insurance

Digit Two Wheeler Insurance

HDFC Ergo Two Wheeler Insurance

IFFCO Tokio Two Wheeler Insurance

Kotak Mahindra Two Wheeler Insurance

Liberty Two Wheeler Insurance

National Two Wheeler Insurance

Navi Two Wheeler Insurance

Two wheeler Insurance CompaniesExpand

Long-Term Third-Party Policy for New Bike Owners

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 a five-year policy for two-wheelers.

Henceforth, two-wheeler owners have 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 do 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 five years. The below rates are applicable with effect from 1st June 2022-

Engine Capacity (in CC)	Third-party Bike Insurance Rates for 5 years (in Rs)
Up to 75 CC	Rs 2,901
Between 75 to 150 CC	Rs 3,851
Between 150 to 350 CC	Rs 7,365
Above 350 CC	Rs 15,117

Key Benefits of Third-Party Bike Insurance

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-

Legal and Financial Assistance

It gives legal and financial assistance to pay compensation while settling the claims arising out of third-party liabilities in an accident.
Coverage for Property Damage

In case of property damage to a third party, this policy recompenses up to Rs 7.5 lakh to the third party.
Fulfills Legal Mandate

As per the Indian Motor Vehicle Act, of 1988, two-wheeler riders must own at least a third-party cover for their vehicles.
Affordable Plan

Third-party insurance premiums are comparatively cheaper and the cost is decided by the IRDAI every year.
Personal Accident Cover

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.
Peace of Mind

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.

Compensation Under Third-party Bike 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 of loss of two limbs or sight of two eyes	100%
In case of 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.

Coverage Under Third-Party Bike Insurance

Inclusion
Exclusion

Covers damages caused to the third party in an accident, including bodily injury or death of the third party
Covers the property damages to a third party, where the liability can be claimed up to Rs 7.5 lakh
Covers compulsory personal accident cover of Rs 15 lakh for bike owner-driver that can be purchased by paying an additional premium.

Loss or damage caused to the insured vehicle during an accident
Loss or damage caused while driving without a valid DL, RC, PUC certificate, or bike insurance policy during an accident
No claims are accepted if it is a drunk & drive case
No compensation is given if the accidents happen outside the geographical boundaries mentioned in the policy documents
No claims are accepted arising due to contractual liabilities
No claims for the loss or damage caused by radioactive contaminants, wars, or riots.

How to Buy Third-Party Bike Insurance?

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. By following the below steps you can easily buy third-party bike insurance from Policybazaar.com

At Policybazaar.com, choose the option 'Third-party Bike Insurance' from the 'Insurance Product' drop-down menu
Enter your bike number and click on ‘View Plans’
Choose one plan from multiple quotes offered by top insurers in India
As per your requirement, add Personal Accident (PA) cover to get the owner-driver coverage
To get owner-driver coverage, you can add compulsory Personal Accident (PA) cover
Pay the displayed premium using a credit/debit card, net banking, or UPI
At last, you will receive a copy of the purchased third-party bike insurance policy at your registered email id.

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.

why buy bike insurance form policybazaar

How to Renew Third-Party Bike Insurance Online?

Most motor insurance companies facilitate the 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-

Visit the official website of the Policybazaar Insurance Brokers Private Limited
Choose the option 'Third-party Bike Insurance' from the 'Insurance Product' drop-down menu
Enter your two-wheeler registration number
Choose a plan offered by multiple insurers
As per your requirement, add Personal Accident (PA) cover to get the owner-driver coverage
Pay the displayed premium using a credit/debit card, net banking, or UPI
At last, receive a copy of the renewed policy at the registered email id.

How to Claim Third-Party Bike Insurance?

The claim procedure for third-party bike insurance varies as per the situation.

In case your bike has been damaged by a third party
In case you have caused damage to a third-party vehicle, property, or person

Both cases have a different set of steps to register a claim under third-party bike insurance. Take a look-

Case 1- Claim Procedure for Third-Party Bike Insurance- If You Are the Victim

Step 1- Contact the police helpline number and inform them about the accident

Step 2- As proof, click the pictures of the damages suffered by your insured vehicle

Step 3- Note down the details of the vehicle that damaged your bike, such as the registration number, color of the vehicle, make & model, etc.

Step 4- Take the contact details of the eyewitnesses who were present at the place of the event

Step 5- Register an FIR or First Information Report at a police station nearest to the accident spot that holds jurisdiction over the area

Step 6- On the date of the hearing, prove that your bike was damaged by the third party person’s vehicle with the help of relevant evidence & documents

Step 7- Once the court announces its decision in your favor, the motor insurer of the guilty third party person will compensate you for all your losses and damages.
Case 2- Claim Procedure for Third-Party Bike Insurance- If You Caused the Damage

Step 1- Contact the police helpline number and intimate them about the accident

Step 2- Take pictures of the damaged vehicle or injured third party person on the accident spot for evidence

Step 3- Note down all the contact and vehicle details of the third-party person who has been injured during the accident

Step 4- Take the contact details of the eye-witlessness who were present at the place of the event

Step 5- Lodge an FIR regarding the accident at the nearest police station holding jurisdiction over the accident area

Step 6- Notify your bike insurance company about the accident at the earliest

Step 7- Submit all the required details and documents to your insurance provider

Step 8- Register a case at the Motor Accidents Claims Tribunal in your city

Step 9- Keep a copy of all the conversations or emails of the case to avoid any future discrepancies

Step 10- The Tribunal will fix the compensation amount and your insurance company will pay the claim amount to the third party person

Step 11- If the claim amount paid by your insurer is less than the compensation amount, you pay the balance amount to the third-party accident victim to avoid future hassles.

Third Party Insurance FAQs

General

Claim

Documents

Q: What is the difference between third-party bike insurance and comprehensive bike insurance?

Ans: The basic difference between third-party bike insurance and comprehensive bike insurance is that third-party liability insurance policy only covers claims arising out of a third party involved in the accident, while comprehensive insurance offers own damage cover as well.
Q: What is 3rd party insurance for a bike?

Ans: A third-party bike insurance offers financial protection if there is an injury/death or property of a third party during a road accident. It covers both legal and financial expenses arising due to an accident to a third party.
Q: What if I am caught driving a bike without a valid third-party two-wheeler insurance policy?

Ans: In case you are caught riding a bike without a valid third-party two-wheeler insurance policy for the first time you will have to pay a fine of Rs 2000. For the second offense, you have to pay a hefty fine of Rs 4000 and/or imprisonment of 3 months.
Q: What is the procedure to cancel third-party bike insurance?

Ans: You can cancel the third-party policy anytime if you feel the coverage is insufficient. Here is the process of cancellation-
(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 basis.
Q: What are the exclusions of third-party bike insurance?
Ans: Third-party motorcycle insurance doesn’t cover the following situations-
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.
Q: Can I buy a standalone policy with third-party insurance for my bike?

Ans: Yes. You can buy a standalone policy with third-party insurance for your bike, which provides financial coverage for your damages. All motor insurance providers in India offer this cover to enhance the coverage. This policy protects against the damages caused to the own vehicle due to accidents, natural calamities, man-made disasters, and theft.
Q: How long is third-party insurance valid?

Ans: In India, all the new two-wheelers must have long-term third-party bike insurance that is valid for 5 years.
Q: Is it mandatory to buy third-party bike insurance in India?

Ans: Yes. As per the Motor Vehicle Act of India, all two-wheeler owners should compulsorily have at least third-party bike insurance to drive on public roads.
Q: Is buying a third-party bike insurance policy enough for my bike?

Ans: A third-party bike insurance policy is ideal for people who only want to stay covered against any third-party accidental claims for causing injuries or property damages to unknown people. However, if the accident also caused injuries to you and your bike, then you will not be able to make any claims under your third-party policy. Thus, if you are looking for complete compensation, it is advised to buy a comprehensive bike insurance policy.
Q: Can I avoid taking third-party two-wheeler insurance?

Ans: No, third-party two-wheeler insurance is mandatory for all bike owners in India. Riding a bike without third-party bike insurance is a punishable offense. Therefore, it is better not to avoid taking a third-party two-wheeler insurance policy and remember to renew it on time.
Q: What is the maximum compensation provided under a third-party bike insurance policy?

Ans: The maximum compensation for property damage claims under the third-party bike insurance policy is limited to a maximum of Rs 7.5 lakh.