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Third-Party Bike Insurance
Third-party bike insurance is a mandatory insurance policy for all the two-wheeler owners in India. It financially covers the damages caused to another party, person, vehicle, or property in case of a road accident by the insured two-wheeler or the policyholder. A third-party (TP) bike insurance is also known as a liability only policy and riding without this policy can lead to a challan of ₹2000/- in India.
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.
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:
- Their medical expenses
- Legal fees, if any
- Property damage (up to ₹1 lakh)
Instead of you paying the compensation for the loss of third-party, your insurance company handles it.
Key Features of Third-party Bike Insurance
| Key Features | Details |
| Objective | Legal and financial protection against third-party liabilities |
| Coverage Type | Covers injury, death, or property damage to a third-party |
| Damages to Own Bike | Not Covered |
| Theft & Fire Protection | Not Covered |
| Mandatory by Law | Yes (Under the Motor Vehicles Act, 1988) |
| Premium | Regulated by IRDAI and quite affordable premiums |
| Property Damage Limit | Up to ₹1 lakh |
| Third-Party Injury/Death | Unlimited liability (as per MACT/tribunal decision) |
| Personal Accident Cover | Purchase it as an add-on and get up to ₹15 lakh coverage for owner-driver |
| Legal Expense Coverage | Covered |
| Claim Process | Initiated by filing FIR and notifying insurer; tribunal decides compensation amount |
| Policy Period | Typically, available for 1 year and mandatory up to 5 years for new bikes |
Why It is Mandatory to Buy 3rd-Party Bike Insurance?
A 3rd party bike insurance is the bare minimum requirement as per the Indian Motor Vehicle Act. The government of India made it compulsory to ensure victims of road accidents receive compensation, especially when the person (policyholder) is at fault and cannot afford to pay out-of-pocket.
As per the IRDAI guidelines, if you are buying a new bike, you must purchase a 5-year third-party bike insurance to ride a bike on Indian roads. 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).
Third-party Bike Insurance Premium Rates
As per the IRDAI guidelines, the third-party bike insurance premium rates are given below for single and multi-year bike insurance policy. The price of third-party bike insurance is decided based on the engine/battery capacity of the vehicle and is given below.
Regular Petrol Bike
| Engine Capacity | TP 1-Year Bike Insurance Premium | TP 5-Years Bike Insurance Premium |
| Less than 75cc | ₹ 538 | ₹ 2,901 |
| 75cc up to 150cc | ₹ 714 | ₹ 3,851 |
| 150cc up to 350cc | ₹ 1,366 | ₹ 7,365 |
| More than 350cc | ₹ 2,804 | ₹ 15,117 |
Electric Bike
| Capacity | TP 1-Year Insurance Premium | TP 5-Years Insurance Premium |
| Not exceeding 3 KW | ₹ 457 | ₹ 2,466 |
| Exceeding 3 KW but not exceeding 7 KW | ₹ 607 | ₹ 3,273 |
| Exceeding 7 KW but not exceeding 16 KW | ₹ 1,161 | ₹ 6,260 |
| Exceeding 16 KW | ₹ 2,383 | ₹ 12,849 |
*Disclaimer: The third-party bike insurance premium mentioned above is as per the IRDAI and can change anytime without any further notice.
Coverage Under Third-party Bike Insurance
- Inclusions
- Exclusions
Below are the inclusions of 3rd party bike insurance policy:
✅Third-party Injuries: The insurer is liable to compensate for any third-party injuries, disabilities, or death and cover any medical expenses incurred.
✅Third-party Property Damage: Covers damages to vehicles, buildings, or other property owned by a third-party and offers a maximum compensation of ₹ 1 lakh.
✅Legal Liability Coverage: Provides financial protection against legal expenses and liabilities arising from third-party claims.
✅Personal Accident (PA) cover: It offers the compulsory PA cover for the bike owners and insures them 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: Damages caused to the two-wheeler due to any natural or man-made disasters, accidents, thefts, etc, are not covered.
❌Illegal Driving: The insurer is not liable to pay for any losses or damages incurred if you were driving without a valid DL, RC, PUCC, or insurance policy or were not following rules.
❌Commercial Use of Personal Bike: If a private two-wheeler is used for commercial purposes, claims may be rejected.
❌Drunk & Drive Cases: Accidents caused under the influence of alcohol or drugs are not covered.
Third-Party Compensation: How Does it Work?
| Type of Loss | Compensation Coverage |
| Injury to Third-party | Medical expenses and loss of income |
| Death of Third-party | Lump sum to family/dependents as per MACT decision |
| Property Damage | Covered up to ₹1 lakh (as per IRDAI limit) |
| Legal Costs | Covered if related to the third-party claim |
Here is a table showing compensation details to a third-party in a road accident:
| Third-Party Liability | Scale of Compensation |
| The demise of the third-party | 100% of the sum insured amount |
| Loss of one eye or one limb | 50% of the sum insured amount |
| Loss of two eyes or one limb and one eye | 100% of the sum insured amount |
| Damage to third-party vehicle/property | Up to Rs. 1 lakh compensation |
*Note: The compensation percentage may vary from insurer to insurer in case of loss/injury to different body parts.
Disadvantages of Third-party Bike Insurance
- Minimum Coverage: A 3rd party bike insurance only offers coverage against third-party liabilities and does not cover any damages caused to your bike due to any natural and man-made disasters.
- No Customizations Available: You cannot choose or include any add-ons to customize your policy as per your requirements. A two-wheeler 3rd party insurance will only offer bare minimum coverage towards third-party and property damage.
- Less Financial Security: If your bike damages any person or property but is also damaged in the same scenario, you will have to bear the cost of repairing your two-wheeler yourself and no coverage will be provided.
Third-Party vs Comprehensive Bike Insurance
The table below highlights the difference between a third-party bike insurance vs a comprehensive bike insurance.
| Parameter | Third-Party Bike Insurance | Comprehensive Bike Insurance |
| Premium Cost | Low premium as it provides less coverage | Higher premium due to a comprehensive coverage |
| Legal Requirement | Yes, under the Motor Vehicles Act, 1988 | No, but recommended for better protection |
| Add-Ons | Not available with 3rd party bike insurance | Multiple add-ons available, such as Zero Depreciation Cover, Engine Protection, Roadside Assistance, etc. |
| Personal Accident Cover | Mandatory to buy | Mandatory to buy |
| Who Should Buy? | Suitable for those with an old two-wheeler looking for just a legal compliant bike insurance | Ideal for those looking for complete protection against damages and theft and also have a new two-wheeler |
How to Buy/Renew Third-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:
- 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 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.
How to File a Third-party Bike Insurance Claim?
The process for filing a third-party claim depends on who is at fault in the accident. Below are two clear guides for both situations:
-
Situation No. 1: A Third-party Damaged Your Bike
If someone else (another rider or vehicle owner) caused damage to your insured bike, here’s what you should do:
Step 1: If someone else (another rider or vehicle owner) caused damage to your insured bike, here's what you should do:
Step 2: Take Photographs of the Damage
Click clear pictures of your damaged bike. These act as proof during claim settlement.Step 3: Get the Details of the Third-party
Note down their name, contact info, vehicle number, and insurance details.Step 4: Find Eyewitnesses
Collect contact information and statements from people who saw the accident. Their testimony helps support your claim.Step 5: Inform Your Bike Insurance Company
Contact your insurer and report the incident. They'll guide you on the next steps.Step 6: File an FIR
Visit the police station near the accident site and lodge an FIR (First Information Report).Register a Case with the MACT Court
With the help of a lawyer, file your case at the Motor Accident Claims Tribunal (MACT).Step 7: Present Your Evidence in Court
Show your photographs, eyewitness accounts, and FIR to prove that the third-party was at fault.Step 8: Get Compensation
If the tribunal decides in your favor, the third-party's insurer will pay for your damages. -
Situation No. 2: You Caused Damage to Someone Else’s Vehicle, Property, or Injury
If you accidentally hurt a person or damage someone’s vehicle/property with your bike, here’s what you should do:
Step 1: Call the Police Immediately
Report the accident by calling the police helpline.Step 2: Take Photos of the Damage
Capture images of the scene, damaged property, or injured person as proof.Step 3: Note Down Third-Party Details
Collect the affected person's name, contact info, and vehicle/property details.Step 4: Identify Eyewitnesses
Ask witnesses for their contact information as they may be needed during the claim process.Step 5: File an FIR
Report the accident at the nearest police station.Step 6: Inform Your Insurance Company
Contact your bike insurer as soon as possible and share details of the incident.Step 7: Submit Required Documents
Provide all necessary documents (FIR, photos, third-party info, etc.) to your insurer.Step 8: File a Case with MACT
The third-party person may file a claim with the Motor Accident Claims Tribunal.Step 9: Keep a Record of Everything
Save all communication (emails, messages, claim forms) in case of future disputes.Step 10: Paying the Compensation
The MACT will fix the claim amount to be paid and your insurance company pays the compensation decided by the tribunal. If the claim amount is more than your coverage limit, you'll have to pay the difference.
Things to Keep in Mind While Filing Third-Party Claims
- Always file an FIR and notify your insurer as soon as possible.
- Keep photos, documents, and witness info ready.
- Be honest and cooperative during the claim process.
- Hire a legal expert for MACT cases and they handle it smoothly.
Documents Required for Third-Party Bike Insurance Claims
The following documents are required for third-party bike insurance claims in India:
- Policy Copy
- Bike Registration Certificate (RC) 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 their requirements.
Why Choose Policybazaar for Third-Party Bike Insurance?
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:
- Instant online policy issuance
- Affordable premium starts at just ₹1.3/day
- 24x7 claims support
- Zero paperwork
- IRDAI-approved insurers
- Option to upgrade to a comprehensive bike insurance plan
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 only have a 3rd party bike insurance policy. The Motor Vehicles Act states that all two-wheeler owners must at least have a third-party bike insurance to be able to legally ride their bikes on Indian roads. -
Q. What is 5-year 3rd party insurance?
Ans: The 5-year third-party bike insurance is a legally mandatory insurance policy as per the Supreme Court of India. 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: Having at least a third-party bike insurance is mandatory for two-wheelers in India under the Motor Vehicles Act, 1988. -
Q. What are the three types of bike insurance?
Ans: Insurers offer three types of bike insurance policy. You can choose either the third-party liability only policy, standalone own damage bike insurance, or a comprehensive bike insurance. However, having at least a third-party bike insurance is mandatory as per the law. -
Q. Can I buy an own-damage policy with third-party insurance for my bike?
Ans: Yes, you can buy an 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 a standalone own damage bike insurance to enhance the policy coverage. -
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 and has an affordable premium. -
Q. Is third-party motorcycle insurance worth it?
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. -
Q. How is third-party insurance calculated?
Ans: The third-party bike insurance premium in India is calculated based on your bike’s engine cubic capacity (cc) and is set by the Insurance Regulatory and Development Authority of India (IRDAI). The third-party bike insurance premium remains uniform across all insurers. -
Q. Is FIR necessary for a third-party bike insurance claim?
Ans: Yes, an FIR is mandatory if you are filling a claim against your third-party bike insurance. The FIR is necessary for claims that involve a third-party liability such as major accidents and property damage. -
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. 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.
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
