Third Party Bike Insurance

Third-party bike insurance is a type of two-wheeler insurance policy that covers the financial liability of a bike owner for causing bodily injuries or property damages to a third-party person while driving. In India, every two-wheeler owner must hold this policy while riding on public roads.

Third Party Bike Insurance

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Why Do You Need Third Party Bike Insurance?

With the increasing road fatalities, the importance of insuring the motor vehicle has also increased. As per the latest report of the National Crime Records Bureau (NCRB), nearly 70,000 people registered in two-wheeler road accidents 2021.

Therefore, having a third-party bike insurance is mandatory in India as per the Indian Motor Vehicles Act 1988. A two-wheeler owner needs this cover as it compensates the injured third-party for any loss or damages caused to them by the insured vehicle.

The compensation offered in case of third-party death and property damage is limited up to Rs 7.5 lakh and depends upon the age, profession, income, and status of the third party.

Key Benefits of Third Party Bike Insurance

A third-party policy protects against several unforeseen third-party liabilities and its premium is comparatively more affordable than any other plans. Here are the key benefits of a third-party insurance policy-

Legal and Financial Assistance

It gives legal and financial assistance to pay compensation while settling the claims arising out of third-party liabilities in an accident.
Coverage for Property Damage

In case of property damage to a third party, this policy recompenses up to Rs 7.5 lakh to the third party.
Fulfills Legal Mandate

As per the Indian Motor Vehicle Act, 1988, it is compulsory for two-wheeler riders to own at least a third-party cover for their vehicles.
Affordable Plan

Third-party insurance premiums are comparatively cheaper and the cost is decided by the IRDAI every year.
Personal Accident Cover

A Personal Accident (PA) cover helps in covering the injury or loss sustained to the owner-driver during an accident. A standard PA cover of Rs 15 lakh is provided, and the scope of coverage can be increased by taking it as an add-on cover.
Peace of Mind

In India, the penalty for riding a two-wheeler without insurance is Rs 2,000, if it happens for the first time and Rs 4,000 for the second time. Hence, holding mandatory third-party insurance saves you from paying hefty fines and gives you a sense of security during the ride.

Inclusions of Third Party Bike Insurance

A third-party policy is also known as an 'Act Only' policy and provides the coverage for the following events-

Physical Injuries- It covers damages caused to the third party in an accident, including bodily injury or death of the third party.
Property Damages- It covers the property damages to a third party, where the liability can be claimed up to Rs 7.5 lakh.
Personal Accident Cover- It covers compulsory personal accident cover of Rs 15 lakh for bike owner-driver that can be purchased by paying an additional premium.
PA Cover for Pillion Rider- It provides coverage for the pillion rider as well by paying an additional Personal Accident Cover premium.

Exclusions of Third Party Bike Insurance

Here are some exclusions where you will not receive any compensation under your third-party insurance-

Own Damages- Loss or damage caused to the insured vehicle during an accident.
Driving without Mandatory Documents- No coverage when driving without a valid DL, RC, PUC certificate, or bike insurance policy during an accident.
Drunk and Drive Case- No claims are accepted if it is a drunk & drive case.
Outside Geographical Boundaries- No compensation is given if the accidents happen outside the geographical boundaries mentioned in the policy documents.
Contractual Liabilities- No claims are accepted arising due to contractual liabilities.
War or Riots- Claims are not accepted for the loss or damage caused by radioactive contaminants, wars, or riots.

Compensation Under Third-party Bike Insurance

The compensation is subjected to the owner-driver who holds a valid Driving License and RC of the insured bike. Here is a table showing the scale of compensation offered under a third-party bike insurance cover to the policyholder-

Nature of Injury	Scale of Compensation
In case of death	100%
In case loss of two limbs or sights of two eyes	100%
In case 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 percentage may vary on offerings from insurer to insurer in case of damage to body parts.

Two Wheeler Insurers

Bajaj Allianz Two Wheeler Insurance

Digit Two Wheeler Insurance

Edelweiss Two Wheeler Insurance

IFFCO Tokio Two Wheeler Insurance

Kotak Mahindra Two Wheeler Insurance

Liberty Two Wheeler Insurance

National Two Wheeler Insurance

Navi Two Wheeler Insurance

Two wheeler Insurance CompaniesExpand

Third-party Insurance Premium Rates

The premium rates of third-party bike insurance are determined by the two-wheeler's engine capacity (cc). Moreover, the rates are announced by the IRDAI and keep on changing by 10-20% every year.

The third-party bike insurance rates applicable from 1st June 2022 are highlighted in below table-

Engine Capacity (in CC)	Third-party Bike Insurance Premium Rates (in Rs)
Up to 75 CC	Rs 538
Between 75 to 150 CC	Rs 714
Between 150 to 350 CC	Rs 1366
Above 350 CC	Rs 2804

Long-term Third-party Cover for New Bike Owners

In a recent order from the Supreme Court, all General Insurance Companies are instructed to offer only long-term third-party motor insurance across the country for new bikes. By following the court order, IRDAI has directed the Insurance Companies to offer mandatory three-year third-party insurance for cars and a five-year policy for two-wheelers.

Henceforth, every two-wheeler owner has to insure their 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.

Many 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. It also offers price stability as the users need not to 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 1st June 2022-

Engine Capacity (in CC)	Previous Third-party Bike Insurance Rates for an Annual Policy (in Rs)	Current Third-party Bike Insurance Rates for a 5-year Policy (in Rs)
Up to 75 CC	Rs 1,045	Rs 2,901
Between 75 to 150 CC	Rs 3,285	Rs 3,851
Between 150 to 350 CC	Rs 5,453	Rs 7,365
Above 350 CC	Rs 13,034	Rs 15,117

why buy bike insurance form policybazaar

How to Buy Third-Party Bike Insurance?

Third-Party bike insurance can be purchased either online or offline. However, with the advent of the internet people prefer buying insurance online.

Buying online 3rd party bike insurance is a very convenient and cost-effective way.

All you need to do is visit the official website of the insurer like Policybazaar.com-

Enter your vehicle details
Select the one that suits you the best and pay the premium via UPI, debit/credit card, or net banking
The insurance policy documents will be sent to your registered mail id by the insurer.

In case you are not familiar with online purchasing, you can visit the nearest branch of the insurance company and approach the agent.

They will guide you through the insurance plan that meets your requirement. If everything goes well, you can pay the premiums through cash or bank cheque and make your purchase successful.

How to Renew Third-party Bike Insurance Online?

Most motor insurance companies facilitate online renewal of third-party bike insurance policies for their customers. Moreover, you can check third-party bike insurance premiums by IRDAI. As renewal is the most crucial time to take a call, the insurers expect a timely renewal of the insurance policy.

In this regard, if you have purchased the policy from Policybazaar.com, below are the steps mentioned to renew it online-

Visit the official website of the Policybazaar Insurance Brokers Private Limited
Choose the option 'Third-party Bike Insurance' from the 'Insurance Product' drop-down menu
Enter your two-wheeler registration number
Choose a plan offered by multiple insurers
As per your requirement, add Personal Accident (PA) cover to get the owner-driver coverage
Pay the displayed premium using a credit/debit card, net banking, or UPI
At last, receive a copy of the renewed policy at the registered email id.

How to Claim Third-party Bike Insurance?

The claim procedure for third-party bike insurance varies as per the situation.

In case your bike has been damaged by a third party
In case you have caused damage to a third party vehicle, property, or person

Both cases have a different set of steps to register a claim under third-party bike insurance. Take a look-

Case 1- 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
Note down the details of the vehicle that damaged your bike, such as the registration number, color of the vehicle, make & model, etc.
Take the contact details of the eye-witnesses who were present at the place of the event
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 Tribunal in 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 with the help of relevant evidence & documents
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.

Case 2- 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 for evidence
Note down all the contact and vehicle details of the third party person who has been injured during the accident
Take the contact details of the eye-witnesses who were present at the place of the event
File an FIR regarding the accident at the nearest police station holding jurisdiction over the accident area
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
It is suggested to keep a copy of all the conversations or emails of the case to avoid any future discrepancies
The Tribunal will fix the compensation amount and your insurance company will pay the claim amount to the third party person
If the claim amount paid by your insurer is less than the compensation amount, pay the balance amount to the third-party accident victim to avoid future hassles.

FAQs

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 claims arising out of a third party involved in the accident, while comprehensive insurance offers own damage cover as well.
Q: What is the procedure to cancel third party bike insurance?

Ans: You can cancel third-party policy anytime if you feel the coverage is insufficient. Here is the process of cancellation-
(A). Inform the insurance provider and register your request. You can call on the helpline number or speak to our experts at Policybazaar.com

(B). In case you have bought a policy from another insurer, provide documentary evidence for the same. You may be asked for other related paperwork to complete

(C). The insurer will cancel the policy after receiving the details and verifying the documents

(D). The premiums will be returned after deducting a small amount on a pro-rata base.
Q: What are the exclusions of third party bike insurance?

Ans: Third-party motorcycle insurance doesn’t cover the following situations-
1. Any damages caused to the own vehicle in an accident

2. Any liability arising from contractual liability

3. Loss or damage due to war or warlike situation, nuclear explosion, civil war, or other malicious activities

4. If the driver is not carrying a valid driving license at the time of the accident

5. The accident happened while driving under the influence of alcohol or other intoxicating substances.
Q: Can I buy stand alone third party insurance for my bike?

Ans: Yes. You can buy a 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 coverage. This policy protects against the damages caused to the own vehicle due to accidents, natural calamities, man-made disasters, and theft.
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 your 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 at least third-party bike insurance to drive it on public roads.
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 if the accident also caused injuries to you and your bike, then you won’t be able to make any claims under your third-party policy. Thus, if you are looking for complete compensation, it is advised to buy a comprehensive bike insurance policy.
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 third-party bike insurance is a punishable offense. Therefore, it is better not to avoid taking a third-party two-wheeler insurance policy and remember to renew it on time.
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.
Q: Which documents should I submit to make a claim under third party bike insurance?

Ans: At the time of raising claims, you need to submit the following documents:
1.Duly filled and signed two-wheeler claim form

2. Copy of bike insurance policy document or cover note

3. Copy of your Driving License (DL)

4. Copy of Registration Certificate (RC)

5. Copy of the FIR or Police Panchanama

6. Other documents (varies from insurer to insurer)
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 time you will have to pay a fine of Rs 2000. For the second offense, you have to pay a hefty fine of Rs 4000 and/or imprisonment of 3 months.