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Third Party Bike Insurance
Third-party bike insurance is a mandatory two-wheeler insurance policy requirement in India for all two-wheeler owners. This type of insurance protects you from financial liabilities if you cause damage to another person or their property while riding your bike. It's not just about following the law; it's about riding responsibly and ensuring everyone's safety on the road.
What is Third-Party Bike Insurance?
This basic coverage protects you from the costs associated with:
- Bodily injury to a third party: Medical expenses, disability compensation, or death benefits.
- Damage to a third party's property: Repair or replacement costs for vehicles, buildings, or other property.
Example: If you accidentally hit a pedestrian, your third-party insurance would cover their medical bills and any legal liabilities you might face.
Why Do You Need Third-Party Bike Insurance?
The Motor Vehicles Act of 1988 makes 3rd party bike insurance compulsory for all two-wheelers in India. This law ensures that everyone on the road is financially protected in case of an accident. However, riding without this TP bike insurance policy can result in a hefty fine of ₹2,000 and/or imprisonment of up to three months.
Key Features of Third Party Two Wheeler Insurance Policy
Here are the key features highlighted in the below table of a third party bike insurance policy:
| Key Features | Description |
| Mandatory by Law | Required by the Motor Vehicles Act, 1988, for all two-wheelers in India. |
| Affordable Premiums | Offers basic coverage at a lower cost. |
| Covers Third-Party Liabilities | Focuses on protecting you from financial obligations towards a third party involved in an accident. |
| Easy to Purchase Online | Can be bought quickly and easily bought online through Policybazaar.com |
| Long-Term Policies Available | Provides the option to the new bikes to get coverage for 5 years. |
Key Benefits of Third Party Two Wheeler Insurance Policy
Here are the key features highlighted in the below table of a third party bike insurance policy:
| Key Benefits | Description |
| Peace of Mind | Allows you to ride with confidence, knowing you're financially protected in case of an accident. |
| Legal Compliance | Ensures you're adhering to the law and avoid penalties for riding without a two wheeler insurance policy. |
| Financial Security | Safeguards you from the potentially overwhelming costs associated with third-party liabilities. |
| Simple Claims Process | Offers a straightforward process for filing and settling claims. |
| Convenience | Long-term policies provide continued coverage without the need for annual renewals. |
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 compensation amount for bodily injury is decided by the Motor Vehicle Act based on the severity of the injuries and the victim's age and income. For property damage, the maximum compensation is limited to ₹7.5 lakh.
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:
| Nature of Injury Caused to the 3rd Party | Scale of Compensation 3SR |
| In case of death | 100% |
| In case of loss of two limbs or sight of two eyes | 100% |
| In case of loss of one limb and sight of one eye | 50% |
| In case of permanent total disability from injuries other than injuries mentioned above | 100% |
*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:
| Bike Engine Capacity (in CC) | Annual Third-party Bike Insurance Premium Rates (in ₹) |
| Up to 75 CC | ₹ 538 |
| Between 75 to 150 CC | ₹ 714 |
| Between 150 to 350 CC | ₹ 1366 |
| Above 350 CC | ₹ 2804 |
Explore Two Wheeler Insurance
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:
| Bike Engine Capacity (in CC) | Third-party Bike Insurance Premium for 5 years (in ₹) |
| Up to 75 CC | ₹ 2,901 |
| Between 75 to 150 CC | ₹ 3,851 |
| Between 150 to 350 CC | ₹ 7,365 |
| Above 350 CC | ₹ 15,117 |
How to Calculate a Third Party Two Wheeler Insurance Premium
You can easily calculate your 3rd party insurance for bike premium using online calculators provided by Policybazaar.com. Simply enter your bike details and get an instant quote.
Factors Affecting Third Party Bike Insurance Premium
While the base premium is fixed, several factors can influence your final premium amount:
- Engine capacity: Higher engine capacity generally means a higher premium.
- Location: Your place of registration can impact the premium due to varying risk factors.
- Claim history: A history of claims might lead to a slightly higher premium.
- No Claim Bonus (NCB): You can earn discounts on your premium for each claim-free year.
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 Coverage
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/-.
Coverage Under Third-Party Bike Insurance Policy
- Inclusion
- Exclusion
Below are the inclusions of 3rd party bike insurance policy:
- Coverage against the bodily injuries caused to a third party, i.e. medical costs, disability compensation, and death benefits.
- Coverage against damages caused to a third party's property, including their vehicles, buildings, and other physical property.
- It gives legal liability coverage, i.e. legal costs associated with the case.
Note: It offers the compulsory Personal Accident (PA) cover for the bike owner that can be purchased by paying an additional premium. The PA cover insures the bike owner against injuries/death and temporary/permanent disabilities with financial coverage of up to 15 lakh.
Here are the exclusions of a third party bike insurance policy:
- Loss or damage caused to the own vehicle during an accident.
- Loss or damage caused while driving without a valid DL, RC, PUCC, or bike insurance policy during an accident.
- No claims are accepted if it is a drunk & drive case.
- No claims are accepted if the damages incurred outside the geographical boundaries mentioned in the policy documents.
- No claims arising due to contractual liabilities are accepted.
- No claims for the loss or damage caused by radioactive contaminants, wars, or riots.
- Loss or damage caused if the personal two-wheeler was being used for commercial purposes or other purposes.
How to Buy 3rd 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:
- Step 1: At Policybazaar.com, choose the option 'Third-party Bike Insurance' from the 'Insurance Product' drop-down menu.
- Step 2: 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.
- Step3: Compare and 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.
How to Renew 3rd Party Bike Insurance Online?
Using the below procedure, you can renew 3rd party bike insurance online from Policybazaar.com:
- Step 1: At Policybazaar.com, from the 'Renewal' drop-down menu, choose 'Two Wheeler Renewal'.
- Step 2: Enter your bike's registration number and click 'View Prices'.
- Step3: Compare and choose a third-party bike 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.
How to Claim Third-party Bike Insurance?
The claim procedure for third-party bike insurance varies as per the situation. Here are the steps that you have to follow for raising third-party bike insurance claims for two different situations:
-
Situation No. 1:
When a third party caused damage to your insured bike:
Step 1: Click the photographs of your damaged bike, as they will act as visual evidence while settling claims.
Step 2: Note down the third-party details responsible for causing damage to your bike.
Step 3: Identify and take the contact details of the potential eyewitnesses present during the accident. Their statements will act as valuable proof during the claim settlement process.
Step 4: Connect with your insurance company, who will further guide you regarding the specific scenarios.
Step 5: Register an FIR at a police station nearest the accident spot with jurisdiction over the area.
Step 6: Next, register a case with the Motor Accident Claims Tribunal Court (MACT) with your lawyer. A legal professional ensures you follow the correct procedures while filing your claims.
Step 7: On the hearing day, prove that your bike was damaged by the third party person's vehicle with the help of relevant evidence & documents.
Step 8: Once the court announces its decision in your favor, the motor insurer of the guilty third party person will compensate you for all your losses and damages.
-
Situation No. 2:
When you have caused damage to a third-party vehicle, property, or person.
Step 1- Contact the police helpline number and inform them about the accident.
Step 2: Take pictures of the damaged vehicle or injured 3rd party person on the accident spot for evidence.
Step 3: Note down all the contact and vehicle details of the third-party person who has been injured during the accident.
Step 4: Take the contact details of the eye-witlessness who were present at the place of the event.
Step 5: Lodge an FIR regarding the accident at the nearest police station holding jurisdiction over the accident area.
Step 6: Notify your bike insurance company about the accident at the earliest.
Step 7: Submit all the required details and documents to your insurance provider.
Step 8: Register a case at the Motor Accidents Claims Tribunal in your city.
Step 9: Keep a copy of all the conversations or emails of the case to avoid any future discrepancies.
Step 10: The Tribunal will fix the compensation amount, and your insurance company will pay the claim amount to the third party person.
Step 11: If the claim amount paid by your insurer is less than the compensation amount, you pay the balance amount to the third-party accident victim to avoid future hassles.
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:
- 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.
- 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.
- 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:
| Third-Party Bike Insurance | Comprehensive Bike Insurance |
| It covers financial and legal expenses arising to the third-party property/life of the insured bike. | It covers damages or losses arising to the insured bike and third-party liabilities. |
| It's a basic cover, so the bike insurance premium is affordable. | It offers extensive coverage, so the bike insurance premium is higher. |
| Mandatory by the law. | Optional policy. |
| Only the PA cover is available as an add-on, because it is compulsory add-on cover. | Various add-ons, such as PA cover, zero depreciation cover, engine protection cover, 24x7-roadside assistance cover, etc., can be purchased to enhance the policy coverage. |
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 have 3rd party bike insurance policy. The Motor Vehicles Act states that all two-wheeler owners must have a third-party bike insurance policy. -
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. Can I buy an own-damage policy with third-party insurance for my bike?
Ans: Yes, you can buy 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 this cover to enhance the policy coverage. -
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. -
Q. Which is the bike insurance policy?
Ans: A third-party bike insurance covers potential loss or damage caused to a third party in a road accident by the insured bike. Whereas comprehensive bike insurance covers damages caused to your own vehicle and third-party liabilities. Moreover, you also get the option to enhance your policy coverage by choosing several add-ons.
Therefore, choose a bike insurance policy that gives you adequate coverage and best fits your budget & requirements. -
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. Moreover, its premium is affordable. -
Q. Is having a third-party bike insurance is enough?
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.
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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Read more^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
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