3 Year Third Party Insurance For 2 Wheeler Vehicles

Now the two-wheeler owners can also opt for the third party motor insurance for a term of 3 years. This initiative by Insurance Regulatory and Development Authority (IRDA) will allow the owners to get their vehicle insured for 3 years instead of getting stuck in the hassle of yearly renewals. IRDA is open to similar plans with own damage option as well.

Read more
Get Two-Wheeler Insurance
Starting @ only ₹538/year#
  • Compare & Save upto 85%*

  • 17+ Insurers

    To Choose From
  • 2.2 Crore+

    Bikes Insured

#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.

Stay home & renew bike insurance in 2 minutes
No Documents Required
Get Bike Insurance starting @ only ₹538/year#
Enter Bike Number
Processing
Other options

According to a circular by IRDA, 3 year third party insurance is expected to have thrice the annual third party premium for two-wheeler vehicle. Irrespective of the circumstance, the premium will not be revised during the policy period. The premium needs to be paid in one installment subjected to the fulfillment of section 64VB of the Insurance Act 1938.

Except in the case where the vehicle is considered to be a total loss, insurer cannot cancel the standalone third-party cover. In case of total loss, it is mandatory for the insurer to refund the premiums to the customer for the full unexpired years.

If offering three years cover, the insurer is required to submit a letter of intent to IRDA. This will be considered as the submission under file and use guidelines of the regulator. As per the IRDA note- the regulator understands the need of a long-term comprehensive cover. It is happy to welcome 3 year comprehensive policy for two wheelers as per the file-and- use guidelines.

Third party insurance is mandatory under the motor insurance law for covering liability of third party. Insurers believe the 3 year tenure will subsequently decreases the cost like issuing policies, administering them and follow-ups for renewals. The savings done by the insurer could get passed over to the customer in the form of lower premium. The non-life insurers do not make any loss in the low-ticket sized two-wheeler insurance.

Under the Motor Vehicle Act, third party insurance is mandatory for every vehicle that plies on the road. IRDA in April has increased the third party cover for car, commercial vehicles and two –wheelers. For finalizing the third-party motor insurance premium in April this year, Insurance Information Bureau has provided data of underwriting years 2007-008 to 2012-13 for number of claims reported and cleared, number of policies up to March 31, 2013.

For calculation of third party liability, IRDA had created a formula that computes the pricing annually on the following factors-age of deceased, wages, earning capacity etc.

Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Two Wheeler insurance articles

Recent Articles
Popular Articles
Best Bikes Under 1 Lakh in 2023

28 Mar 2023

The price range plays a significant role when purchasing a bike
Read more
Can You Raise Claim Under Bike Insurance with a Temporary Vehicle Registration Number?

24 Mar 2023

To ride your bike legally on the Indian roads, you have to abide
Read more
How to Handle a Hit and Run Accident?

23 Mar 2023

A hit-and-run case refers to a road accident where the driver
Read more
How to Check Vehicle Owner Details by Registration Number?

23 Mar 2023

Did you know that you can extract vehicle owner details with the
Read more
What is an Ideal Tenure for Your Two-wheeler Loan?

23 Mar 2023

A two-wheeler loan is the best way to buy a dream bike at
Read more
Best Two Wheeler Insurance Plans in India
When it comes to choosing the best two wheeler insurance plans, we’re sure you have heard enough from different
Read more
How to Check Vehicle Owner Details by Registration Number?
Did you know that you can extract vehicle owner details with the help of the vehicle registration number? Well, it
Read more
How to Check E-challan Status Online?
In India, many road accidents are caused due to rash driving or violation of traffic rules. To ensure the smooth
Read more
Everything You Need to Know About KYC Norms in Two-Wheeler Insurance
Amid the rising number of bike insurance fraudulent cases such as money laundering and terrorist financing, all
Read more
Traffic Rules in India That Every Two Wheeler Rider Should Know
A two wheeler is probably the first vehicle that most people learn to ride after a bicycle. Nothing ever compares
Read more