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.
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.
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:
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.
In case of property damages to third-party, a compensation up to Rs 7.5 lakh is offered under third party insurance.
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.
Also known as 'Act Only' policy, this third party bike insurance policy covers the insured or the vehicle for the following events:
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:
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|
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 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|
|Above 350 cc||2,323||13,034|
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.
Below are the mentioned steps to renew the third party bike insurance policy online:
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.
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:
|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.|
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.
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
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