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Third Party Bike Insurance
Third-party bike insurance is the basic type of two-wheeler insurance policy, that covers you against financial liabilities claimed by a third-party person, property or vehicle arising out of an accident, where the insured bike is at fault. Third-party two-wheeler insurance is compulsory as per the Motor Vehicles Act that helps cover losses & damages to your two-wheeler.
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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.
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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:
- Personal Damages to third-party including Bodily injury or death of the third-party leading to the liabilities on the insured.
- Property Damages to 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.
- Coverage for pillion rider can be purchased by paying additional Personal accident cover 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
In a third-party bike insurance policy, there are certain limitations as well. It is imperative to know them in advance to ensure that there is no confusion at the time of claim settlement. Here are some situations under which your claim can get rejected:
- Own Damages- A third-party bike insurance will only cover for loss or damage caused to another vehicle or person. It will not cover the damage caused to the insured bike.
- Driving without a driving license- At the time of incident if you are found driving without a valid DL then your claim gets rejected.
- Drink Driving- For claim to be accepted it is important not to drink and drive.
- Beyond Geographical Scope of Cover- Incidents happening outside the geographical scope of cover are not eligible for claims.
- Contractual Liabilities- Claims arising due to contractual liabilities are not covered under a 3rd party bike insurance policy.
- War or Riots- Claims arising due to loss or damage caused by radioactive contaminants, war and war like situation are also not paid by the insurer.
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:
| Condition Relating to Engine Capacity | Applicable Third Party Bike Insurance Premium Rates |
| Up to 75 cc | Rs. 482 |
| Between 75 to 150 cc | Rs. 752 |
| Between 150-350 cc | Rs. 1193 |
| Above 350 cc | Rs. 2323 |
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:
| Types of Vehicle with CC | Previous Third Party Bike Insurance Rates (annual/Rs.) | Current Long-Term Third Party Bike Insurance Rates (Rs.) |
| Up to 75 cc | 427 | 1,045 |
| Between 75 cc and 150 cc | 720 | 3,285 |
| Between 150-350 | 985 | 5,453 |
| Above 350 cc | 2,323 | 13,034 |
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.
How to Claim Third Party Bike Insurance?
The claim procedure for third party bike insurance varies as per the situation. The procedure is different in case your bike has been damaged by a third party as compared to the process involved if you have caused damage to a third party vehicle, property or person. Both the procedures are mentioned below to help you register a claim under third party bike insurance without any difficulties. Take a look:
Claim Procedure for Third Party Bike Insurance If You Are the Victim:
- Contact the police helpline number and inform them about the accident.
- Click pictures of the damage suffered by your two-wheeler and the accident spot as proofs.
- Take down the details of the vehicle that damaged your bike, such as the registration number, make and model, the colour of the vehicle, etc.
- Look for any witnesses who might have seen the accident taking place and note down their contact details.
- Intimate your two wheeler insurance company about the accident. They might be able to help you in a difficult situation.
- Register an FIR or First Information Report at a police station nearest to the accident spot that holds jurisdiction over the area.
- File a case at the Motor Accidents Claims Tribunalin your city or holding jurisdiction over the accident spot.
- On the date of the hearing, prove that your bike was damaged by the third party person’s vehicle using relevant evidence and documents.
- Once the court announces its decision in your favour, the motor insurer of the guilty third party person will pay compensation to you.
Claim Procedure for Third Party Bike Insurance If You Caused the Damage:
- Contact the police helpline number and intimate them about the accident.
- Take pictures of the damaged vehicle or injured third party person on the accident spot as evidence.
- Note down the contact details of the third party person who have been injured in the accident.
- Find any witnesses who may have seen the accident taking place and take down their contact details.
- File an FIR regarding the accident at the nearest police station holding jurisdiction over the area where the accident had occurred.
- Notify your bike insurance company about the accident at the earliest.
- Submit all the required details and documents to your insurance provider.
- Register a case at the Motor Accidents Claims Tribunal in your city or covering the accident spot under its jurisdiction.
- Keep a copy of all the conversations or emails who hold with the third party person to avoid any future discrepancies.
- Once the compensation amount has been fixed by the Tribunal, your insurance company will pay the claim amount to the third party person.
- In case the claim amount paid by your insurer if less than the compensation amount, pay the balance amount to the third party accident victim.
FAQs
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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 liabilities of a third party involved in the accident, while comprehensive insurance offers own-damage cover as well. Here’s Comprehensive vs. Third Party Two Wheeler insurance for your better understanding:Third Party Bike Insurance Comprehensive Bike Insurance Covers third party liability arising out of an accident Apart from third party liability, own-damage is also covered Only covers accidental damage or loss covers accidental and damages by natural and man-made calamities as well Premiums are cheaper Premiums are comparatively expensive Add-on cover is not available insured can opt for add-on covers such as zero depreciation, engine cover, roadside assistance etc. -
Q: What is the procedure to cancel third party bike insurance?
Ans: You can cancel your policy anytime if you feel the coverage insufficient. However, very few are aware of the fact that the cover can be dissolved during the policy period as well. However, the cancellation may come with certain conditions:1. The policy can be cancelled only if there is no claim made during the policy term
2. The owner should arrange for an alternate coverage, at least the basic third party bike insurance, before ceasing the exciting policy
3. In case of ownership transfer, the current policy can’t be cancelled until you have an alternate cover and provide the evidence for the same Bike insurance cancellation process includes:
(A). Inform the insurance provider and register your request. You can call on their helpline number or write on the official ID
(B). The insurance executive will guide you through the process.
(C). In case you have bought a policy from another insurer, provide the documentary evidence for the same. You may be asked for other related paperwork to complete
(D). The insurer will cancel the policy after receiving every minute details and verifying the documents. The premiums will be returned after deducting a small amount on a pro-rata base.
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Q: What are the exclusions of third party bike insurance?
Ans: Third party motorcycle insurance doesn’t cover:1. Any liability arising from contractual liability
2. Loss or damage due to war or warlike situation, nuclear explosion, civil war or other malicious activities
3. If the driver is not carrying a valid driving license at the time of the accident
4. Accident happened while driving under the influence of alcohol or other intoxicating substances
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Q: Can I buy stand alone third party insurance for my bike?
Ans: Yes. You can buy stand alone third party insurance for your bike which does not include own damage cover. All motor insurance providers in India offer third party liability only insurance plan for people who only want mandatory third party coverage for their two-wheeler. -
Q: Will I lose my NCB if I make a third party claim under bike insurance?
Ans: NCB or No Claim Bonus is applicable on own damage premiums. This means you will be able to get an NCB discount only on the premium accounted towards own damage cover for your bike. Therefore, making a third party claim under bike insurance will have no impact on your accumulated NCB percentage and it will remain intact. -
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 third party bike insurance to drive it on public roads. People who violate this rule will be punished under the law. -
Q: What if someone else was driving my bike during the time of the accident, will insurer cover for my losses?
Ans: In case someone else caused an accident while driving your bike, then your insurance company will pay for the losses incurred, provided you had permitted the driver to use your bike. However, if the driver was under the influence of alcohol or was driving without a valid license then your insurance company will reject the claim. -
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. But in case the accident also caused injuries to you and your bike, then you won’t be able to make any claims under your bike insurance policy. You will have to pay for your treatment and your bike’s repair on your own if you have third party cover only. Thus, third party bike insurance is not sufficient in case you are looking for complete protection for your bike. -
Q: What happens if I met with an accident in a different city/state?
Ans: In case you met with an accident outside your city or state, then you need to file a third party claim immediately. Ideally, you should file an FIR and a case at the Motor Accidents Claims Tribunal in the city or state where the accident took place. But you can also make a claim back in the city/ state where you reside. -
Q: Can I avoid taking the third party two wheeler insurance?
Ans: No,Third party two wheeler insurance is mandatory for all bike owners in India. Riding a bike without a third party bike insurance is a punishable offence. Therefore, it is better not to avoid taking a third party two wheeler insurance policy and get it renewed before expiry. -
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. However, there is no upper limit for bodily injuries or accidental death compensation under the third party two wheeler insurance. -
Q: Which documents should I submit to make a claim under third party bike insurance?
Ans: At the time of making a claim under third party bike insurance, you need to submit the following documents:1. Two wheeler claim form
2. Copy of policy document or cover note
3. Copy of your driving license
4. Copy of registration certificate
5. Copy of the FIR or Police Panchanama
6. Other documents requested by the insurance company
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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, then you will have to pay a fine of Rs 2000 and/or spend up to three months in jail. But if you are caught driving a bike without third party bike insurance for the second time, then you will have to pay a fine of Rs 4000 and/or spend up to three months in jail.
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