With the increasing number of road fatalities, the importance of insuring motor vehicles 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 in 2021.
Therefore, having 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 to up to Rs 7.5 lakh and depends upon the age, profession, income, and status of the third party.
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 for a year are displayed in below table-
Engine Capacity (in CC) | Annual 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 |
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 a five-year policy for two-wheelers.
Henceforth, two-wheeler owners have 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 do 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 five years. The below rates are applicable with effect from 1st June 2022-
Engine Capacity (in CC) | Third-party Bike Insurance Rates for 5 years (in Rs) |
Up to 75 CC | Rs 2,901 |
Between 75 to 150 CC | Rs 3,851 |
Between 150 to 350 CC | Rs 7,365 |
Above 350 CC | Rs 15,117 |
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-
It gives legal and financial assistance to pay compensation while settling the claims arising out of third-party liabilities in an accident.
In case of property damage to a third party, this policy recompenses up to Rs 7.5 lakh to the third party.
As per the Indian Motor Vehicle Act, of 1988, two-wheeler riders must own at least a third-party cover for their vehicles.
Third-party insurance premiums are comparatively cheaper and the cost is decided by the IRDAI every year.
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.
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.
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 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 percentage may vary on offerings from insurer to insurer in case of damage to body parts.
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. By following the below steps you can easily buy third-party bike insurance from Policybazaar.com
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.
Most motor insurance companies facilitate the 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-
The claim procedure for third-party bike insurance varies as per the situation.
Both cases have a different set of steps to register a claim under third-party bike insurance. Take a look-
Step 1- Contact the police helpline number and inform them about the accident
Step 2- As proof, click the pictures of the damages suffered by your insured vehicle
Step 3- Note down the details of the vehicle that damaged your bike, such as the registration number, color of the vehicle, make & model, etc.
Step 4- Take the contact details of the eyewitnesses who were present at the place of the event
Step 5- Register an FIR or First Information Report at a police station nearest to the accident spot that holds jurisdiction over the area
Step 6- 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
Step 7- 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.
Step 1- Contact the police helpline number and intimate them about the accident
Step 2- Take pictures of the damaged vehicle or injured third 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.
(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 basis.
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*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.
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*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.