Third Party Bike Insurance

What is Third-Party Bike Insurance?

In India, having at least a third-party bike insurance policy is mandatory for all two-wheeler owners. A 3rd party bike insurance policy covers the expenses or costs incurred because of injuries or damages caused to a third party's property by the insured bike.

Since this is a mandatory policy, all motor vehicle owners must have this to avoid a hefty fine of ₹ 2,000 and/or imprisonment of three months. The Motor Laws of India ensure all two-wheelers are insured when they take out their vehicle to ride on public roads.

How Does a Third-Party Bike Insurance Work?

As the name suggests, third-party bike insurance covers the insured bike owner's liability towards any third-party losses in a road accident. In the event of third-party death or property damage, compensation is limited up to ₹ 7.5 lakh, depending upon factors such as the third party's age, occupation, income, and status.

However, remember, a third-party bike insurance policy does not cover any damages caused to the insured bike itself.

Let's understand the working of a third-party bike policy with the help of an example.

Suppose Mr. Kartik (the insured bike owner) meets with an accident that damages another bike and injures its rider, Mr. Mayank. In this case, the mandatory third-party bike insurance will cover the costs of injuries and the damages to the third party, i.e. Mr. Mayank.
Hence, 3rd party bike insurance policy ensures that individuals like Mr. Mayank receive compensation for the losses incurred due to accidents involving insured bikes.

Why Buy Third-Party Bike Insurance Online from Policybazaar.com?

Policybazaar.com helps you stay legally compliant on Indian roads. Here, you can compare and buy third-party bike insurance plans starting at ₹ 1.3/day*. In addition, you can instantly renew your bike insurance in just 60 seconds and save unnecessary hassles & costs.

Compensation Offered Under Third-Party Bike Insurance Policy

The IRDA (Insurance Regulatory and Development Authority of India) determines the third-party bike insurance compensation amount. However, the bike owner must have a valid Driving License and Registration Certificate.

The coverage offered for the physical injuries caused to 3rd party depends upon the nature of the injury. Here is a table showing the scale of compensation offered for different types of injuries under third-party insurance for bikes:

*Note: The compensation percentage may vary from insurer to insurer in case of loss/injury to different body parts.

Annual Third-Party Bike Insurance Premium Rates

Similar to the compensation, the IRDA also decides the premiums of third-party bike insurance policies depending upon the bike's engine capacity (CC).

Below is the table showing pre-defined annual or 1-year third-party bike insurance premium rates depending on the bike's engine capacity:

Long-Term Third-Party Bike Insurance Premium Rates

The IRDA has mandated all general insurance companies to offer only long-term third-party bike insurance policies to new two-wheeler owners. Following the order, all the bike insurance companies provide a mandatory five-year policy for new two-wheelers.

Henceforth, two-wheeler owners must insure their newly bought possessions with a long-term third-party insurance policy. Any changes in the policy benefits or terms and conditions will be intimated accordingly, if any.

Usually, two-wheeler owners forget to renew their policy before the expiry date. With the introduction of this new rule, there is no hassle of renewing the policy every year.

The table below highlights rates for long-term or 5-year third-party bike insurance premiums that are applicable from 1 June 2022:

Reasons to Buy Third-Party Bike Insurance Online

• Quick and Easy Purchase
  You can buy/renew a third-party bike insurance policy within 60 seconds at Policybazaar.com.
• Financial Assistance & Legal Coveragestrong>
  With the help of a third-party bike insurance policy, the policyholder gets financial coverage for the injuries/damages caused to 3rd party, along with legal assistance whenever required.
• Affordable Bike Insurance Policy
  Since the IRDA regulates all third-party bike insurance premium rates in India, it guarantees affordability. This policy provides maximum benefits at a minimum cost.
• Waive Off Hefty Fines
  As per the Motor Vehicle Act, you must buy a third-party bike insurance policy if you own a two-wheeler in India. Having this policy saves you from paying hefty fines that may range from ₹ 2,000-4,000/-.

How to Buy/Renew Third-Party Bike Insurance Online?

Buying/renewing 3rd party bike insurance online is a very convenient and cost-effective. By following the below steps, you can easily buy from Policybazaar.com:

• Step 1: At Policybazaar.com, choose the option 'Third-party Bike Insurance' from the 'Insurance Product' drop-down menu.
• Step 2: Enter your bike number and click on' View Plans'.
• Step3: Choose a plan from multiple quotes offered by insurers in India.
• Step 4: Add a Personal Accident (PA) cover, since it is a mandatory add-on cover.
• Step 5: Pay the displayed 3rd party bike insurance premium online using a credit/debit card, net banking, or UPI.
• Step 6: At last, you will receive a copy of the third-party bike insurance policy at your registered email ID.

Documents Required for Third-Party Bike Insurance Claims

The following documents are required for third-party bike insurance claims in India:

• Third-party bike insurance policy
• Registration Certificate (RC) of the bike 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 the requirements.

Things to Keep in Mind While Raising Third Party Bike Insurance Claims

Here are a few pointers that you should keep in mind while raising third-party bike insurance claims:

1. Adequate Evidence: While raising third-party claims, ensure you have valid and credible evidence for a firm build-up so that the insurance company won't reject your claim request.
2. Prompt Reporting to Insurer and the Police Authorities: Make sure you inform the insurer and the police promptly if you are involved in a road accident. The respective authority will take further steps without delays in the claim settlement process.
3. Compensation Limit: The Motor Accident Claims Tribunal is responsible for passing an order determining the compensation amount for the damages following guidelines passed by IRDA. Currently, the maximum payout for damages caused to third-party property is ₹7.5 lakhs. However, for the injuries caused, there is no capping on the compensation amount.

Difference Between Third-Party Bike Insurance & Comprehensive Bike Insurance

Here is a quick comparison between third-party and comprehensive bike insurance policy: