Get Ready to Pay a Higher Third Party Bike Insurance Premium This Year

If you own or drive a bike then the smartest thing that you can do is to secure your bike financially with a two-wheeler insurance policy. In case there is accidental damage or your bike is stolen, or there is damage caused due to an earthquake, floods, etc. the insurer would pay off the expenses.

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Ever thought why it is essential to buy a bike insurance policy? As per the Motor Vehicles Act of 1988, every vehicle, bike or two-wheeler that is plying on the Indian roads should have a minimum of the third-party insurance policy. Basically, Two-wheeler insurance policy is of two types - Comprehensive Insurance and Third Party Insurance. Third party vehicle insurance cover is mandatory in India. However, a comprehensive policy is required if you want to enjoy your peace of mind.

A third-party two-wheeler insurance policy compensates for any loss or damages that are caused to another person, vehicle, or property form your insured bike/scooter/moped/2-wheeler. The risks that are compensated include theft, accidents, natural disasters, and unforeseen damages. Not only this, you get cashless repair services at the network workshops, emergency roadside assistance, zero depreciation cover, and various other rider options. And the best part is that almost every motor insurer offers easy online renewal of two wheeler insurance policy. Recently, some amendments have been proposed to the existing third-party bike insurance rules.

Proposed Third Party Insurance Premium Rates for 2019 (w.e.f. from June 16)

In a recent announcement, the Insurance Regulatory and Development Authority of India (IRDAI) has proposed a revision in the third-party motor insurance premium rates for the current financial year i.e. from 2019 to 2020. As per the new rates, people will have to shell out extra money for third-party two-wheeler and car insurance with effect from June 16, 2019.

Two wheelers with an engine capacity between 150cc and 350cc have the maximum percentage increase of more than 21 percent. There has been an increase in rates from INR 985 to INR 1,193. All the vehicle owners will need to pay INR 208 more this year. And, there have been no changes for two-wheelers with more than 350cc engine capacity.

According to the notification issued by IRDAI on June 4, taking into consideration the mandatory nature of third-party vehicle insurance, insurance companies have to ensure that they make third-party insurance readily available at their online channels and underwriting offices. Any complaint regarding non-availability of third party bike insurance or denial of the insurance cover will be taken seriously.

Moreover, insurance providers cannot reject the current vehicle insurance policies or replace them with a fresh policy with new premium rates. This enclosed schedule of the premium rates with the notification will have to be notably displayed on the notice board of every underwriting office and on the insurer’s website for the public to view it.

Comparison Table of New Third Party Insurance Premium Rates & Current Applicable Rates

Vehicle Description Current Premium Rates Proposed Increase in Rates  in 2019 Premium Rate w.e.f June 16, 2019
Engine capacity not exceeding 75cc INR 427 12.88%  INR 482
75cc to 150cc  INR 720 4.44% INR 752
150cc to 350cc  INR 985 21.11% INR 1,193
More than 350cc INR 2,323 No change INR 2,323
You may like to Read: Tips to Save Money on Two Wheeler Insurance Premium

Third Party Two Wheeler Insurance Premium Rates

Third party two wheeler insurance premiums have been increased from INR 427 to INR 482 for two wheelers with engine capacity lesser than 75cc. The rates have been increased from INR 720 to INR 752 for two wheelers with engine capacity between 75cc and 150cc. Also, the premium rates have been increased from INR 985 to INR 1,193 for other two wheelers with engine capacity between 150cc and 350cc.

However, there have not been any changes in the premium rates for a two wheeler with engine capacity exceeding 350cc this year, and they are still fixed at INR 2,323. If you are riding a bike above 350cc, then you are not required to pay a higher third-party insurance premium this year.

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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 (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis