Third Party Bike Insurance
Third-party bike insurance is a mandatory two wheeler insurance policy under the Motor Vehicles Act, 1988. It provides financial protection if the policyholder's bike causes injury, death, or property damage to another person or a third party in a road accident. The insurance company pays for compensation and legal expenses related to such third-party claims. However, this policy does not cover damage to your own two-wheeler.
In India, all bike and scooter owners must have a valid third-party bike policy. Riding without one can result in a fine of ₹2,000 and/or up to 3 months imprisonment for the first offence, and ₹4,000 for repeat offences.
Do you know? Over 60% of two-wheelers in India still run without valid third-party insurance, despite it being legally mandatory.
How Third-Party Bike Insurance Works?
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.
This policy steps in to cover the following:
Instead of you paying the compensation for the loss of third-party, your insurance company handles it.
Key Features of Third-Party Bike Insurance
Why Third-Party Bike Insurance is Mandatory?
The primary reason for making third-party bike insurance policy mandatory is to ensure the financial protection of third parties against fatal injury, death, or property damage in a road accident.
Without this coverage, either the victims would have to bear all losses or damages on their own, or the at-fault bike rider would have to pay huge out-of-pocket expenses and legal liabilities. It covers injury, death, or property damage to third parties caused by the insured bike. TP bike insurance offers compensation of up to ₹1 lakh for damage to the third-party property, whereas in case of any case of death or bodily injuries to a person because of your bike, the claim amount is decided by the Motor Accident Claims Tribunal (MACT).
Therefore, to avoid this situation and make a safer transportation environment, the Indian government has made this policy compulsory. Moreover, riding your two-wheeler without a third-party bike insurance policy leads to a fine of ₹2,000 and/or imprisonment of up to 3 months.
If you want to explore different plan options and compare premiums, you can learn more about bike insurance here.
Third-Party Premium Rates in India
As per the IRDAI guidelines, the third-party bike insurance premium rates are given below for single and multi-year bike insurance policies. The price of third-party bike insurance is decided based on the engine/battery capacity of the two-wheeler:
- Regular bike
- Electric bike
Coverage Under Third-Party Bike Insurance
Covered in Third-Party Bike Insurance
Not Covered in Third-Party Bike Insurance
Third-Party Compensation: How Does it Work?
- Coverage
- Compensation
Disadvantages of Third-party Bike Insurance
Limited Coverage
No Customisations Available
High Out-of-Pocket Expenses
Third-Party vs Comprehensive Bike Insurance
The e below highlights the difference between a third-party and a comprehensive bike insurance policy.
How to Buy/Renew Third Party Bike Insurance Online?
Buying third-party bike insurance online is easier. By following the steps below, you can easily buy from Policybazaar.com:
- At Policybazaar.com, go to bike insurance or simply choose the option 'Third-Party Bike Insurance'.
- 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.
- Compare and choose a plan from multiple quotes offered by insurers in India after adding the mandatory Personal Accident (PA) cover.
- Pay the displayed 3rd party bike insurance premium online using a credit/debit card, net banking, or UPI.
- At last, you will receive a copy of the third-party bike insurance policy at your registered email ID.
Do you know this fact?
Since neither the car owner nor the bike owner has an insurance policy, no one will receive any financial support for the damages or injuries. Both parties will have to bear the repair and medical costs on their own.
Here, the car owner has a Third-Party Insurance plan. This means the insurance company will cover the losses of the bike owner, including damage and injury costs. However, the car owner will have to pay for their own car’s repair expenses.
In this case, the car owner has a Comprehensive Insurance plan. The insurance company will compensate both parties: the bike owner for their damage and injuries, and the car owner for their car repairs as well. This offers protection for everyone involved.
How to File a Third Party Bike Insurance Claim?
To file a third-party claim, it is important to know 'who is at fault' or 'who was responsible for the accident'.
To assist you, here are two possible situations for raising a third-party claim:
If another rider, driver, or vehicle damages your insured bike, you must follow the steps below:
In case your bike causes injury to someone or damages another person's property (third-party), here's what you should do:
Things to Keep in Mind While Filing Third-Party Claims
Buying Third party bike insurance online is very convenient and cost-effective. By following the below steps, you can easily buy from Policybazaar.com:
Documents Required for Third-Party Bike Insurance Claims
The following documents are required for third-party bike insurance claims in India:
Why Choose Policybazaar for Third-Party Bike Insurance?
Policybazaar.com makes it quick and convenient to stay legally compliant. Here are the reasons why you should buy third-party bike insurance online from us:
Bike Insurance Companies
Third Party Bike Insurance FAQs
Q. Can I ride my bike with third-party bike insurance only?
Ans: Yes, to ride your bike legally on Indian roads, you must have only a third-party bike insurance policy.Q. What is 5 year 3rd party insurance?
Ans: According to the Supreme Court of India, 5-year third-party bike insurance is mandatory. According to the law, all new bike owners must have a long-term liability policy to cover damages caused to third parties.Q. Which insurance is compulsory for a 2-wheeler?
Ans: According to the Motor Vehicles Act, 1988, buying third-party bike insurance is mandatory in India.Q. What are the three types of bike insurance?
Ans: The three types of bike insurance policies offered by insurers are:1. Third-party bike insurance
2. Standalone own-damage bike insurance
3. Comprehensive bike insurance
Q. Can I buy an own-damage policy with third-party insurance for my bike?
Ans: Yes, you can buy your bike's own damage with a third-party insurance policy without any hassles. This helps in enhancing the policy coverage.Q. Is third party motorcycle insurance worth it?
Ans: Yes, this policy ensures legal compliance and offers financial protection when you are involved in an accident, causing damages or injuries to a third-party person or vehicle.Q. How is third party insurance calculated?
Ans: It is calculated based on the bike's engine cubic capacity (cc) and is predetermined by IRDAI. This policy's premium is uniform across all insurers.Q. Is FIR necessary for a third-party bike insurance claim?
Ans: Yes, an FIR is mandatory if you file a claim against your third-party bike insurance.
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