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Third Party Bike Insurance
Third-party bike insurance is a legally mandated two-wheeler insurance policy by the Indian Motor Vehicle Act 1988. It covers the damages to another party, person, vehicle, or property in case of a road accident by the insured two-wheeler. Riding without it can cost you a fine of ₹2,000 and legal hassles. Therefore, this type of bike insurance policy keeps you compliant and worry-free on the road.
What is Third-Party Bike Insurance?
Third-party bike insurance is the most basic and legally required type of bike insurance. It ensures that if your vehicle is involved in an accident affecting another person, you are not personally liable for the financial burden. Instead, your insurer covers the compensation or legal costs on your behalf.
Unlike a comprehensive policy, third-party insurance does not cover damages to your own bike or provide protection against theft, fire, or natural disasters. Its primary purpose is to safeguard you from third-party claims that may arise due to accidental injury, death, or property damage caused by your bike.
Since this insurance is compulsory for all bike owners in India, having an active policy ensures compliance with traffic laws and saves you from unnecessary legal troubles. If you are looking for added protection for your bike, you can explore comprehensive bike insurance options for wider coverage.
Example: If you accidentally hit a pedestrian, your third-party insurance would cover their medical bills and any legal liabilities you might face.
How Does Third-Party Bike Insurance Work?
Third-party bike insurance is a legal requirement for all two-wheeler owners in India. It protects you from financial liabilities in case your bike causes injury, death, or property damage to a third party. Here's how it works:
Coverage Activation
Once you purchase a third-party bike insurance policy, it becomes active from the start date mentioned in the policy document. You will receive a digital or physical policy certificate as proof of insurance.
In Case of an Accident
If your bike is involved in an accident where a third party suffers injuries, death, or property damage, the following steps occur:
- Inform the Insurance Provider: Immediately notify your insurer about the accident.
- File an FIR (if required): In case of bodily injury or death, filing an FIR at the nearest police station is mandatory.
- Legal Proceedings: The case is handled by the Motor Accident Claims Tribunal (MACT), which determines the compensation amount.
- Claim Settlement: Your insurer pays the compensation directly to the affected third party as per the tribunal's decision.
Difference Between Third-Party Bike Insurance & Comprehensive Bike Insurance
Understanding the difference between third-party and comprehensive bike insurance helps you choose the right policy for your needs. Here's a quick comparison:
| Aspect | Third-Party Bike Insurance | Comprehensive Bike Insurance |
| Coverage | Covers third-party liabilities, including property damage and injury/death of a third party. | Covers both third-party liabilities and own vehicle damages due to accidents, theft, fire, or natural disasters. |
| Premium Cost | Lower premium as it provides basic coverage. | Higher premium as it offers extensive coverage. |
| Legal Requirement | Mandatory under the Motor Vehicles Act, 1988. | Optional, but recommended for broader protection. |
| Add-On Options | Only Personal Accident (PA) Cover is available (mandatory). | Multiple add-ons available, such as Zero Depreciation Cover, Engine Protection, Roadside Assistance, etc. |
| Who Should Buy? | Best for those seeking affordable, legally compliant insurance. | Ideal for those looking for complete protection against damages and theft. |
Key Features of Third Party Two Wheeler Insurance Policy
A third-party bike insurance policy comes with essential features that ensure compliance with legal requirements and financial protection in case of accidental liabilities. Here's a quick overview:
| Feature | Description |
| Legally Mandatory | As per the Motor Vehicles Act, 1988, all two-wheeler owners in India must have valid third-party insurance. |
| Budget-Friendly Premiums | Since it offers only basic coverage, third-party insurance is more affordable than comprehensive policies. |
| Third-Party Liability Coverage | Protects you against financial claims if your bike causes injury, death, or property damage to a third party. |
| Instant Online Purchase | Easily available online for a quick, hassle-free buying experience via Policybazaar.com. |
| Long-Term Policy Option | New bike owners can opt for a 5-year third-party insurance policy, as mandated by IRDAI. |
This policy is ideal for meeting legal requirements while ensuring financial security against third-party claims. However, if you need coverage for your own bike's damages, you should consider a comprehensive insurance plan.
Key Benefits of Third Party Two Wheeler Insurance Policy
A third-party bike insurance policy offers several advantages, ensuring both legal compliance and financial protection. Below are the key benefits:
| Benefit | Description |
| Legal Compliance | Fulfills the mandatory requirement under the Motor Vehicles Act, 1988, helping you avoid fines and legal consequences. |
| Financial Protection | Covers compensation for injuries, death, or property damage caused to a third party, reducing your out-of-pocket expenses. |
| Stress-Free Riding | Gives you peace of mind, knowing that any third-party liabilities from an accident will be covered by your insurer. |
| Hassle-Free Claims Process | Features a simple and efficient process for filing and settling claims, making it easier to handle accidental liabilities. |
| Long-Term Coverage Option | Offers a 5-year policy for new bikes, eliminating the need for frequent renewals and ensuring continued protection. |
Coverage Under Third-Party Bike Insurance Policy
A third-party bike insurance policy provides essential protection against legal and financial liabilities arising from accidents. Here's what it covers and what it doesn't:
- Inclusions
- Exclusions
Below are the inclusions of 3rd party bike insurance policy:
- Bodily Injury to a Third Party - Covers medical expenses, disability compensation, and death benefits for an injured third party.
- Property Damage to a Third Party - Covers damages to vehicles, buildings, or other property owned by a third party (maximum compensation: ₹1 lakh).
- Legal Liability Coverage - Provides financial protection against legal expenses and liabilities arising from third-party claims.
Note: It offers the compulsory Personal Accident (PA) cover for the bike owner that can be purchased by paying an additional premium. The PA cover insures the bike owner against injuries, death, and temporary or permanent disabilities with financial coverage of up to ₹15 lakh.
Here are the exclusions of a third party bike insurance policy:
- Own Vehicle Damage - This policy does not cover damages to your own bike.
- Invalid Documentation - No claims are entertained if you were driving without a valid DL, RC, PUCC, or insurance policy.
- Drunk & Drive Cases - Accidents caused under the influence of alcohol or drugs are not covered.
- Outside Coverage Zone - No claims if the accident occurs outside the geographical limits specified in the policy.
- Contractual Liabilities - Damages arising due to contractual obligations are not covered.
- War, Riots, or Nuclear Risks - No coverage for losses due to war, nuclear hazards, or civil disturbances.
- Commercial Use of Personal Bike - If a private two-wheeler is used for commercial purposes, claims may be rejected.
Compensation Offered Under Third-Party Bike Insurance Policy
The compensation for bodily injury or death under third-party bike insurance is determined by the Motor Accident Claims Tribunal (MACT), based on factors such as the severity of the injury, the victim's age, and income. However, for third-party property damage, the maximum compensation is ₹1 lakh, as per IRDAI regulations.
| Nature of Injury Caused to the 3rd Party | Scale of Compensation 3SR |
| 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 compensation percentage may vary from insurer to insurer in case of loss/injury to different body parts.
Since third-party insurance is mandatory and crucial for financial protection, it ensures that accident victims receive adequate compensation while safeguarding policyholders from hefty out-of-pocket expenses.
Annual Third-Party Bike Insurance Premium Rates
Similar to the compensation, the IRDA also decides the premiums of third-party bike insurance policies depending upon the bike's engine capacity (CC).
Below is the table showing pre-defined annual or 1-year third-party bike insurance premium rates depending on the bike's engine capacity:
| Bike Engine Capacity (in CC) | Annual Third-party Bike Insurance Premium Rates (in ₹) |
| Up to 75 CC | ₹ 538 |
| Between 75 to 150 CC | ₹ 714 |
| Between 150 to 350 CC | ₹ 1366 |
| Above 350 CC | ₹ 2804 |
Long-Term Third-Party Bike Insurance Premium Rates
The IRDA has mandated all general insurance companies to offer only long-term third-party bike insurance policies to new two-wheeler owners. Following the order, all the bike insurance companies provide a mandatory five-year policy for new two-wheelers.
Henceforth, two-wheeler owners must insure their newly bought possessions with a long-term third-party insurance policy. Any changes in the policy benefits or terms and conditions will be intimated accordingly, if any.
Usually, 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.
The table below highlights rates for long-term or 5-year third-party bike insurance premiums that are applicable from 1 June 2022:
| Bike Engine Capacity (in CC) | Third-party Bike Insurance Premium for 5 years (in ₹) |
| Up to 75 CC | ₹ 2,901 |
| Between 75 to 150 CC | ₹ 3,851 |
| Between 150 to 350 CC | ₹ 7,365 |
| Above 350 CC | ₹ 15,117 |
How to Calculate a Third Party Two Wheeler Insurance Premium
Calculating your third-party bike insurance premium is quick and hassle-free with online premium calculators. Simply follow these steps on Policybazaar.com:
- Visit the Premium Calculator - Go to the third-party bike insurance section on Policybazaar.com.
- Enter Your Bike Details - Provide details like bike make, model, variant, registration year, and location.
- Get an Instant Quote - The calculator will display the applicable third-party premium based on IRDAI-regulated rates.
- Compare & Buy - Review the quote, compare different insurers, and purchase your policy instantly.
Factors Affecting Third Party Bike Insurance Premium
While the base premium for third-party bike insurance is regulated by IRDAI, a few factors can influence the final premium amount. Here's what affects your third-party insurance cost:
- Engine Capacity (CC) - The premium is directly linked to your bike's engine capacity. Higher CC means a higher premium, as larger engines pose a greater risk on the road.
- Location of Registration - Areas with high traffic density or accident-prone zones may have slightly different premiums due to increased risk factors.
- Claim History - If you have a record of frequent claims, insurers may adjust your premium accordingly.
- No Claim Bonus (NCB) - Not Applicable - Unlike comprehensive insurance, third-party policies do not offer NCB benefits for claim-free years.
Why Buy Third-Party Bike Insurance Online from Policybazaar.com?
Policybazaar.com makes it quick and convenient to stay legally compliant with third-party bike insurance. Here's why it's the best choice for purchasing your policy online:
- Affordable Premiums - Get third-party bike insurance starting at just ₹1.3/day.
- Quick & Hassle-Free Process - Compare multiple insurers and buy your policy in just a few clicks.
- Instant Renewal in 60 Seconds - Renew your existing policy instantly without paperwork or delays.
- Avoid Penalties & Legal Troubles - Ensure you meet the legal requirement and ride worry-free.
- Trusted Platform - Policybazaar.com offers policies from leading insurers, ensuring reliable coverage and transparent pricing.
- With a simple online process and affordable plans, securing your bike with third-party insurance has never been easier!
Reasons to Buy Third-Party Bike Insurance Online
Purchasing third-party bike insurance online is the most convenient way to stay legally compliant while ensuring financial protection. Here's why you should get your policy online:
- Quick & Hassle-Free Purchase - Buy or renew your third-party bike insurance in just 60 seconds on Policybazaar.com, without any paperwork.
- Financial & Legal Protection - Covers third-party injury, death, or property damage, while also providing legal assistance in case of disputes.
- Budget-Friendly Premiums - Since IRDAI regulates third-party insurance rates, you get an affordable policy with standardized pricing.
- Avoid Heavy Fines - As per the Motor Vehicles Act, 1988, riding without valid third-party insurance can lead to fines of ₹2,000 for the first offense and ₹4,000 for repeat violations. Having a policy keeps you legally covered.
How to Buy 3rd Party Bike Insurance Online?
Buying 3rd party bike insurance online is very convenient and cost-effective. By following the below steps, you can easily buy from Policybazaar.com:
- Step 1: At Policybazaar.com, choose the option 'Third-party Bike Insurance' from the 'Insurance Product' drop-down menu.
- Step 2: Enter your bike's registration number and click 'View Prices'. If you're buying insurance for a new bike, select 'Bought a New Bike' and provide details like make, model, variant, and year of manufacture.
- Step3: Compare and choose a plan from multiple quotes offered by insurers in India.
- Step 4: Add a Personal Accident (PA) cover for bike, since it is a mandatory add-on cover.
- Step 5: Pay the displayed 3rd party bike insurance premium online using a credit/debit card, net banking, or UPI.
- Step 6: At last, you will receive a copy of the third-party bike insurance policy at your registered email ID.
How to Renew 3rd Party Bike Insurance Online?
Using the below procedure, you can renew 3rd party bike insurance online from Policybazaar.com:
- Step 1: At Policybazaar.com, from the 'Renewal' drop-down menu, choose 'Two Wheeler Renewal'.
- Step 2: Enter your bike's registration number and click 'View Prices'.
- Step3: Compare and choose a third-party bike plan from multiple quotes offered by insurers in India.
- Step 4: Add a Personal Accident (PA) cover, since it is a mandatory add-on cover.
- Step 5: Pay the displayed 3rd party bike insurance premium online using a credit/debit card, net banking, or UPI.
- Step 6: At last, you will receive a copy of the third-party bike insurance policy at your registered email ID.
How to Claim Third-party Bike Insurance?
The claim procedure for third-party bike insurance varies as per the situation. Here are the steps that you have to follow for raising third-party bike insurance claims for two different situations:
-
Situation No. 1:
When a third party caused damage to your insured bike:
Step 1: Click the photographs of your damaged bike, as they will act as visual evidence while settling claims.
Step 2: Note down the third-party details responsible for causing damage to your bike.
Step 3: Identify and take the contact details of the potential eyewitnesses present during the accident. Their statements will act as valuable proof during the claim settlement process.
Step 4: Connect with your insurance company, who will further guide you regarding the specific scenarios.
Step 5: Register an FIR at a police station nearest the accident spot with jurisdiction over the area.'
Step 6: Next, register a case with the Motor Accident Claims Tribunal Court (MACT) with your lawyer. A legal professional ensures you follow the correct procedures while filing your claims.
Step 7: On the hearing day, prove that your bike was damaged by the third party person's vehicle with the help of relevant evidence & documents.
Step 8: 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.
-
Situation No. 2:
When you have caused damage to a third-party vehicle, property, or person.
Step 1- Contact the police helpline number and inform them about the accident.
Step 2: Take pictures of the damaged vehicle or injured 3rd 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.
Documents Required for Third-Party Bike Insurance Claims
The following documents are required for third-party bike insurance claims in India:
- Third-party bike insurance policy
- Registration Certificate (RC) of the bike and original tax receipts for verification
- Police FIR report for reporting third-party property damage, bodily injuries, or death
- Payment receipts and repair bills
- Duly filled and signed claim form
- Valid Driving License (DL)
- Damage repair estimate
Note: The insurer may ask for other documents depending on the requirements.
Things to Keep in Mind While Raising Third Party Bike Insurance Claims
When filing a third-party insurance claim, consider the following key points to ensure a smooth settlement:
Adequate Evidence - Gather valid proof, such as photos, videos, witness statements, and FIR copies, to support your claim and prevent rejection by the insurer.
Timely Reporting - Notify both the insurer and police authorities immediately after the accident. Quick reporting helps in faster processing and reduces delays in claim settlement.
Compensation Limit -
- Property Damage: The Motor Accident Claims Tribunal (MACT) determines compensation, with a maximum limit of ₹7.5 lakh for third-party property damage.
- Bodily Injury or Death: There is no fixed cap on compensation for third-party injuries or fatalities, as it depends on factors like medical expenses, disability, and loss of income.
Two Wheeler Third-Party Insurers
Bajaj Allianz Third Party Bike Insurance
Digit Third-Party Bike Insurance
HDFC ERGO Third party Bike Insurance
ICICI Lombard Third Party Bike Insurance
IFFCO Tokio Third Party Bike Insurance
Liberty Third Party Bike Insurance
National Third Party Bike Insurance
New India Assurance Third Party Bike Insurance
Expand
FAQs About Third Party Bike Insurance
-
Q. Can I ride my bike with third-party bike insurance only?
Ans: Yes, you can ride your bike legally on Indian roads if you have 3rd party bike insurance policy. The Motor Vehicles Act states that all two-wheeler owners must have a third-party bike insurance policy. -
Q. What are 1st party, 2nd party, and 3rd party in bike insurance?
Ans: In bike insurance, 1st party refers to the policyholder, 2nd party is the insurance company, and 3rd party is the third person who might suffer any loss/damage in an accident due to the policyholder. -
Q. Can I buy an own-damage policy with third-party insurance for my bike?
Ans: Yes, you can buy own damage/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 policy coverage. -
Q. Will I lose my NCB if I make a third-party claim under bike insurance?
Ans: NCB is applicable on own damage premiums. This means you can get an NCB discount only on the premium accounted towards your own damage cover for your bike. Therefore, making a third-party claim under bike insurance will not affect your accumulated NCB percentage and keep it intact. -
Q. Which is the bike insurance policy?
Ans: A third-party bike insurance covers potential loss or damage caused to a third party in a road accident by the insured bike. Whereas comprehensive bike insurance covers damages caused to your own vehicle and third-party liabilities. Moreover, you also get the option to enhance your policy coverage by choosing several add-ons.
Therefore, choose a bike insurance policy that gives you adequate coverage and best fits your budget & requirements. -
Q. What is the need for a third-party bike insurance policy?
Ans: Third-party insurance is a basic two-wheeler insurance policy covering the damages caused to a third party, person, or property in an accident. It is mandatory by law and provides legal protection for the insured bike owner from financial and legal liabilities arising in an accident. Moreover, its premium is affordable. -
Q. Is having a third-party bike insurance is enough?
Ans: Third-party bike insurance policy ensures legal compliance and financial protection if you are involved in an accident causing damages or injuries to another vehicle or pedestrian.
However, if you have comprehensive bike insurance, your bike is financially covered from several unforeseen risks along with third-party liabilities.
Bike insurance companies
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial).The list of insurers mentioned are arranged according to the alphabetical order of the names of insurers respectively.Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
