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 ₹482/year*
  • Save up to 85%

    Lowest 2W Premiums
  • 20+ Insurers

    To Choose From
  • 1.2 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

third-party-rates

Third party rates expected to increase by 21%* soon. Renew today!

Stay home & renew bike insurance in 2 minutes
No Documents Required
Get Bike Insurance starting @ only ₹482/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.

Written By: PolicyBazaar - Updated: 21 July 2021

Two Wheeler insurance articles

Recent Articles
Popular Articles
9 Essential Tips to Take Care of Your Motorbike’s Tyres

27 May 2022

Bikes are a favourite mode of commute for many people. As a bike...
Read more
8 Ways to Check Whether Your Bike Insurance Policy is Fake or Genuine

23 May 2022

The most convenient option to get a bike insurance policy is to...
Read more
5 Ways In Which Your Bike Will Impact Its Insurance Cover

18 May 2022

As per the Motor Vehicles Act, it is mandatory for all bike...
Read more
Top 10 Helmet Brands in India & Need for a Good Helmet

16 May 2022

While riding your bike, there are chances that you might get...
Read more
Top 8 Motorbike Riding Tips for Female Riders

11 May 2022

Gender-specific jobs or hobbies are becoming obsolete. More...
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
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
Renew Your Two-Wheeler Break-in Insurance Policy at PolicyBazaar
Owners of two-wheelers have been getting a good night’s sleep as far as their vehicle’s insurance is...
Read more
Lost Your Two Wheeler Insurance Documents? Here Is What You Need To Do
A bike insurance policy is one of the important documents required for claim settlement. You won’t be able to...
Read more
How to Renew Two Wheeler Insurance Online in 3 Easy Steps?
Automobile business in India has boomed over time. The automobile sales are skyrocketing. With this rise, there is...
Read more