Third Party Bike Insurance

Third party bike insurance covers you against legal liabilities claimed by third-party person arising out of an accident, where the insured vehicle is at fault. Third party insurance for bike is compulsory as per the Motor Vehicles Act 1988, that helps covers losses & damages to your two-wheeler.

Why Do You Need Third Party Bike Insurance?

As per the Indian Motor Vehicles Act 1988, third party bike insurance is a mandate in India. No vehicle can be driven without this cover. The owner is liable to pay a considerable penalty if he/she drives a vehicle without insurance. Hence, it is necessary to have adequate insurance coverage to provide needful of financial protection in case of any liability arising from a third party.

The whooping road fatalities have increased the importance of having your vehicle insured as it provides financial security under any adversities. Besides, it also ensures the quality healthcare where you need not worry about the monetary expenses.

As per a recent official data, a total of 4, 64,910 road accident cases are registered in 2017. The average road deaths per year in India in the last decade are 1, 36,118. When talking about best two wheeler insurance, third Party liability insurance comes to our mind, which is the basic insurance cover one must possess.

Key Benefits of Third Party Bike Insurance

Advantages of buying third-party bike insurance would hardly be measured. This policy covers third-party liabilities arising out of accidental damage, injury or death to a third party. Premiums are comparatively affordable. Above all, this policy protects you from paying a hefty fine while on road. The key benefits to be availed are:

Third Party Death or Personal Damage

In case of personal damages to third-party leading to hospitalization, the medical expenses incurred are taken care off. While if there is an unfortunate death, a compensation amount up to a specified limit is given as well.

Compensation for Property Damage

In case of property damages to third-party, a compensation up to Rs 7.5 lakh is offered under third party insurance.

Personal Accident Cover

This is an added benefit, which can be availed at an affordable personal accident cover premium starting at Rs 330/-. This insurance helps in covering the injury or loss sustained by the owner driver.

Inclusions of Third Party Bike Insurance

Also known as 'Act Only' policy, this third party bike insurance policy covers the insured or the vehicle for the following events:

• Bodily injury or death of the third-party leading to the liabilities on the insured
• Damage to the property of the third party, where the liability can be claimed up to Rs. 1 lakh
• Compulsory personal accidental cover of Rs. 15 lakh for bike owner-driver
• Additional pillion rider cover on payment of additional premium

The Compensation Under Third Party Bike Insurance Works in the following manner:

• 100% of the sum insured can be claimed in case of death. However, the percentage may vary on offerings from insurer to insurer in case of damage to body parts
• 50% of the sum insured in case of loss of one limb or sight of one eye
• Up to 1 lakh compensation in case of property damage
• The compensation is subjected to the driver or owner-driver, driving with a valid Driving License or carrying a valid RC.

Exclusions of Third Party Bike Insurance

• Any damage to the insured vehicle arising out of an accident or other perils
• Any damage or liability caused by activities outside the geographical area of the policy
• A claim arising due to a contractual liability
• Loss or damage due to war, warlike situation, use of nuclear weapons or radioactive contamination

How Much Does a Third Party Bike Insurance Cost?

Third party bike insurance premium or cost is decided by factoring the engine capacity of the insured vehicle and it is decided by the IRDA only depending on the condition relating to the engine capacity of the vehicle. However, it keeps change by 10-20% every year. However, a big relief for bike owners that the premiums will not rise by this year, as per the latest announcement released by IRDA.

The Third Party bike insurance rates are applicable with effect from 16 June 2019:

Long Term Third Party Cover for Five Years for New Bike Owners

As per the recent orders from the Supreme Court, all general companies are instructed to offer only long-term third party motor insurance across the country for new bikes. By following the court order, IRDA has directed the insurance companies to offer three-year third party insurance for cars and five-year policy for two-wheelers. That means, going forward every new bike owners have to insure his/her 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.

Long Term Third Party Bike Insurance - A Road Ahead

Long –term two wheeler insurance can be proved as a positive move as out of the 18 cr. total registered vehicles in India, only 6 cr. are insured. One of the main reasons is many forget to renew the policy on time. The new rule is believed to benefit the entire ecosystem. It will offer price stability as the users need not 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 28 August 2018:

How to Renew Your Third Party Insurance for Bike?

In order to make the renewal process hassle-free every insurance companies offer online renewal of third party bike insurance. However, you can check for third party bike insurance price offered by IRDA. As renewal is the most crucial time to take a call, the insurers expect a timely renewal of insurance policy. In this regard, online renewal appears as the most convenient way of renewing third party bike insurance.

Online Third-Party Bike Insurance Renewal Process:

Below are the mentioned steps to renew the third party bike insurance policy online:

• Check out the bike insurance renewal form
• Enter your insured bike / two wheeler registration number
• Select the two wheeler insurance policy to renew
• You can add riders as your requirement & select IDV of the bike
• Check the offered premiums
• Pay the premiums using credit/debit card or net banking
• Once you made the payment, your third party insurance for bike will be renewed

How to Buy Third Party Bike Insurance?

Third Party Bike insurance can be purchased either online or offline. However, with the advent of internet people prefer buying insurance online mostly. Online 3rd party bike insurance is a very convenient and cost-effective way of insuring your bike. It saves your time and money when insurance can be ensured even sitting at the office or at the best comfort of your home. All you need to do is visit the official website of the insurance company, select a plan and buy.

If you don’t want to buy third party insurance online for two wheeler, you can visit the nearest branch of the insurer and approach the concerned officer. He/she will guide you through the insurance plan that meets your requirement. If everything goes well, you can pay the premiums through cash or cheque and buy the policy. Moreover, you can also consult a broker or insurance agent to buy insurance for your two wheeler.