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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. The whooping road fatalities have increased the importance of having your vehicle insured. It not only provides financial shield during an emergency but also ensures quality healthcare without worrying for the finances. And when talking about insurance for two-wheelers, Third Party bike insurance comes to our minds which is the basic insurance cover one must have. It is also mandatory by the Motor Vehicles Act, 1988. Let’s delve into detail:

What is Third Party Insurance for Two Wheeler?

Third Party bike insurance is a policy that offers insurance protection in case of liability arising out of accidental damage, injury or death to a third party. The insurance company bears the liabilities of the insured person. The compensation is based on the court decision; however, in case of property damage, the claimable amount is up to 1 lakh. Death compensation is equal to the policy sum insured.

Why Do You Need Third Party Bike Insurance

As per the Indian Motor Vehicles Act 1988, third-party bike insurance is mandatory 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.

Key Benefits of Third Party Two Wheeler Insurance

Advantages of buying third-party bike insurance would hardly be measured. Apart from providing financial protection in the hour of need, it also helps you maintain peace of mind at the time of claim. The key benefits of third party insurance include:

  • This policy covers third-party liabilities arising out of accidental damage, injury or death to a third party
  • Premiums are comparatively affordable and cheaper
  • Offers complete peace of mind in case of any liability arising towards a third party
  • By carrying valid third party two wheeler insurance, one can avoid traffic penalties
  • The buying process requires less documentation as it doesn’t cover own damage

Inclusions of Third Party Two Wheeler Insurance

Also known as ‘Act Only’ policy, this covers the insured or the vehicle for the following events:

  • Death or bodily Injury -  An accident leading to crippling injury to a third party can also result in property damage or death as well. In such a case, the injured party is eligible to claim liability expenses or compensation for the loss. The insurer pays the liability amount once set by the Tribunal Court.
  • Damage to Property - Third party bike insurance covers the damages to the third party’s vehicle, where the liability can be claimed up to 1 lakh.
  • Death of the Owner/Driver - In case of death of the registered owner also called as owner driver, the dependents can claim for the loss and the insurance company compensates the money. This is applicable only if the personal accident component is included in the policy and currently the compensation value is raised up to a sum insured of Rs. 15 lakhs.

The compensation under Third Party motor 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 Two Wheeler Insurance

The common exclusions of third party bike insurance include:

  • 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

Two Wheeler Third Party Insurance Rates: How Much Does it Cost?

The premium or cost of third party insurance for the bike is decided by factoring the engine capacity of the vehicle and it is decided by the IRDA only. 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 below rates are applicable with effect from April 2019:

Vehicle Category Third Party Rate
Up to 75 cc Rs. 1045
Between 75 to 150 cc Rs. 3285
Between 150-350 cc Rs. 5453
Above 350 cc Rs. 13,034

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. Let’s see how it affects the insured:

Types of Vehicle with CC Previous Third Party Rates (annual/Rs.) Current Long-term Third Party 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 Two wheeler Insurance?

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 Renewal Process:

To renew the third party bike insurance policy online-

  • Visit the official website of the insurer
  • Go to the online renewal option
  • Select the policy to renew
  • Check the offered premiums
  • Pay the premiums using credit/debit card or net banking

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.

Define third party bike insurance?

Ans:

Third Party bike insurance is a policy that offers insurance protection in case of liability arising out of accidental damage, injury or death to a third party. The insurance company bears the liabilities of the insured person. The compensation is based on the court decision; however, in case of property damage, the claimable amount is up to 7.5 lakh. Death compensation is equal to the policy sum insured.

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 bike insurance 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.

What are the additional covers in two-wheeler insurance?

Ans:

The additional covers that can be opted for along with the regular cover include:

1. Zero-depreciation cover: With this cover, the insured can claim the full amount of the vehicle, without paying its depreciation cost

2. Engine Cover: it protects the engine from regular damages and repair costs are covered

3. Roadside Assistance: in case of vehicle breakdown in the middle of a journey, road-side assistance can be availed. The services like repair of a flat tyre, refilling of fuel, towing of the vehicle etc. are arranged by the network garage.

4. NCB Protector: NCB is a bonus offered for not claiming your policy, which ranges from 20%-50%. But in case of a claim, the NCB turns to zero. With this add-on, you can protect the accumulated NCB even in case of a claim.

5. Personal Accident Cover for Pillion Rider: With this cover, passengers can be covered in case of an accident. Compensation to the pillion is offered in case of an accident leading to disability or death.

6. Accessories Cover: If you own a high-end bike, this cover can be purchased to protect the bike accessories against loss or damage.

However, you can’t buy any add-ons with third party motorcycle insurance. Hence, only comprehensive insurance owners can buy these add-ons.

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:

1. Inform the insurance provider and register your request. You can call on their helpline number or write on the official ID

2. The insurance executive will guide you through the process.

3. 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

4. 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.

Why do I need zero depreciation cover in two-wheeler insurance?

Ans:

Simply put, depreciation refers to the decrease in the value of the vehicle due to normal wear and tear and age. A regular bike insurance policy doesn’t cover the repair expenses of the parts that are prone to depreciation. If you want to avail the full value of your vehicle in case of a claim, you should buy a Zero Depreciation cover. The policy covers bike parts such as rubber, fibreglass, nylon and plastic parts. Usually, one can claim twice in a policy year. However, the number of permissible claims may vary from insurers to insurers. No doubt, the premiums are at higher side; however, the returns are better on a long-term basis.

What are the best two wheeler insurance companies in India?

Ans:

The Indian insurance market has been flooded with many insurance companies offering advanced and attractive policy features. This makes the buying process a bit confusing for the insurance seekers to decide whether they should go with a particular third party bike insurance plan or an insurer. in this regard, here are a few top insurance companies in India that have been serving the industry since long with their innovative and customer-friendly products. Here we go:

1. Tata AIG General Insurance Company

2. Bajaj Allianz General Insurance Company Limited

3. Bharti AXA General Insurance Company

4. IFFCO Tokio General Insurance Company

5. New India Assurance Company

6. Oriental General Insurance Company

7. Reliance General Insurance Company

8. Royal Sundaram General Insurance Company

9. SBI General Insurance Company

10. HDFC Ergo Insurance Company

11. United India Insurance Company

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

How to buy 3rd party bike insurance online?

Ans:

Buying two wheeler insurance third party online is easy. If you prefer going online, just visit the official website of the insurer

1. Browse over the available plan and analyse your needs

2. Choose the plan

3. Check two wheeler third party insurance premium

4. Pay the premium online using credit/debit card or net banking

5. Get the policy document downloaded from the registered email ID

6. Enjoy an instant policy and cover your prized possession

This way you can easily buy the third party 2 wheeler insurance online.

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