Third-party bike insurance is a mandatory liability cover that protects your two-wheeler against any injury, death, or property damage caused to a third party in case of a road accident that involves the insured vehicle. Under the Motor Vehicles Act, 1988, all two wheeler owners are compulsorily required to own this insurance. Failure to own this insurance may result in penalties, such as fines of up to ₹2000 imposed by traffic cops.
Check out the list of features offered by a Third-Party Bike Insurance that make it a trusted choice for many:
It is compulsory for all two-wheeler owners in India to have third-party insurance as per the Motor Vehicles Act.
This insurance assures you of both legal and financial protection against third-party liabilities.
The premium rates are fixed by the Insurance Regulatory and Development Authority of India (IRDAI). Compared to a comprehensive bike insurance policy, third-party bike insurance offers lower premiums.
Does not cover damage to own vehicle on account of theft, fire, or natural or manmade disasters but ensures coverage for injury, death, or property damage occurring to a third party.
Provides coverage for damage to third-party property up to ₹1 lakh.
Provides unlimited financial compensation for bodily injury or death of a third party, as decided by the Motor Accident Claims Tribunal or court.
New bike owners have to own a mandatory policy of 5-year third-party insurance, as per the Supreme Court guidelines./p>
Disclaimer: The above mentioned prices are for a 2 year old Hero Honda Karizma R 223 CC, registered in Navi Mumbai & previous policy has expired.
To understand how this type of bike insurance works, let’s explain it with the help of an example:
Suppose Mr. Sharma sets out on the road with his insured two-wheeler and meets with a road accident. This accident has resulted in damage to another two-wheeler and injury to its driver. Now, Mr. Sharma needs to inform the insurance provider regarding the incident.
Here is where Third-Party Bike Insurance effectively steps in to cover the following:
In all, Mr. Sharma does not have to bear the brunt of the financial compensation to the third party, but it does not cover any damage or injury caused to him or his vehicle.
Here are certain points that are covered by your third party insurance policy:
In case of a road accident, if there is damage caused by your two-wheeler that results in third-party injury, disabilities or death, then this insurance will bear the medical expenses and legal liabilities arising from it.
If there is damage caused by your two-wheeler to third-party property, including any vehicles or buildings, then this insurance compensates up to ₹1 lakh as coverage.
This insurance policy offers a compulsory personal accident cover with a maximum amount of up to ₹15 lakhs for the owner-driver, ensuring financial coverage in case they face injury, disabilities or even death due to an accident.
Here are certain points that are not included in your third party bike insurance policy:
If the driver meets with an accident but is found to be without a valid driving licence, intoxicated with alcohol or drugs, or found to be carrying out any criminal activity, then the claims can be rejected.
Damage arising to the vehicle when driving outside the specified geographical location of the policy, or if a private bike is used for commercial purposes, like delivery or ridesharing, will not be covered by the insurance company.
Damages arising to the owner-driver’s vehicle on account of natural calamities like floods, earthquakes, tsunamis, etc., or manmade events like war, riots, etc., will not be covered under this insurance.
In case the damage or loss occurs to an insured vehicle, and it is found to be pledged to some other party, then it will not be covered by this insurance policy.
If the vehicle is found to be used for extreme purposes, like dexterity trials, organised racing, and speed testing, then certain policies may not cover the damages arising due to these factors.
Here are some of the reasons why owning a Third-Party Bike Insurance policy is crucial for riders:
Under the Motor Vehicles Act, 1988, it is legally mandatory to have at least a Third Party Insurance Policy to drive on Indian roads.
Riding without this insurance can lead to fines up to ₹2,000 for the first offence, higher fines for repeated violations, and possible jail time for severe cases.
This insurance policy is vital to cover third-party liabilities such as injury, death or property damage caused to third parties from the insured bike. Coverage for property damage extends up to 1 lakh, while for injury or death is decided by the Motor Accident Claims Tribunal (MACT).
This insurance is also vital as two-wheelers face more accidents than cars, especially in busy cities like Mumbai, Pune, Bengaluru, and Delhi, due to potholes, narrow lanes, and bad weather increasing accident risks for riders.
Here are the benefits of opting for a Third-Party Bike Insurance:
Stay protected from penalties by fulfilling the legal requirement of third-party insurance.
Avoid hefty expenses arising from third-party claims, ensuring peace of mind.
Budget-friendly option with low premiums compared to comprehensive policies.
Streamlined claim settlement process for third-party damages.
Instant policy issuance ensures you are covered immediately.
Opting for third-party insurance is a cost-effective way to ensure your bike's legal compliance while safeguarding your financial interests.
The premium rates for bikes in third-party insurance are determined by the Insurance Regulatory and Development Authority of India (IRDAI). Based on the bike's engine capacity, the rates will differ for traditional and e-bikes. Let us have a look at what these rates are for both bikes in terms of both single-year and multi-year plans:
| Bike Type | Engine Capacity / Motor Power | 1-Year Premium (₹) | 5-Year Premium (₹) |
|---|---|---|---|
| Petrol/Diesel Motorcycles | Up to 75 cc | ₹538 | ₹2,901 |
| Petrol/Diesel Motorcycles | 75 cc to 150 cc | ₹714 | ₹3,851 |
| Petrol/Diesel Motorcycles | 150 cc to 350 cc | ₹1,366 | ₹7,365 |
| Petrol/Diesel Motorcycles | Above 350 cc | ₹2,804 | ₹15,117 |
| E-Bikes | Up to 3 kW | ₹457 | ₹2,466 |
| E-Bikes | Above 3 kW and up to 7 kW | ₹607 | ₹3,273 |
| E-Bikes | Above 7 kW and up to 16 kW | ₹1,161 | ₹6,260 |
| E-Bikes | Above 16 kW | ₹2,383 | ₹12,849 |
Note: The rates mentioned above by the IRDAI are subject to change. Review the official website for further updates.
Have a look at the differences between Third-party Bike insurance Vs. Own Damage Bike insurance:
| Feature | Third-Party Bike Insurance | Own Damage (OD) Bike Insurance |
|---|---|---|
| What it Covers | Liability for injury, death, or property damage caused to a third party by your bike. | Damage or loss to your own bike due to accident, theft, fire, natural disasters, riots, or vandalism. |
| Legal Requirement | Mandatory by law in India. | Optional coverage, but recommended for better protection. |
| Purpose | Protects third parties from legal and financial loss. | Protects your bike financially from damage and loss. |
| Add-ons Availability | No add-ons or customisation available. | It can be enhanced with add-ons like zero depreciation, roadside assistance, etc. |
| Premium Cost | Lower premium than Own Damage insurance. | Offers a premium that increases with time. |
| Depreciation Impact | The premium and claims are not affected by depreciation. | Premium and claim amount are affected by the bike’s depreciation rate. |
Disclaimer: The inclusions and exclusions outlined above represent general coverage under the respective bike insurance policy. For precise details, please refer to the specific policy wording provided by your insurance company.
Coverfox makes the process of buying or renewing third-party bike insurance not only simple but also hassle-free and quick:
Once you visit the official Coverfox website, enter basic details about your bike, such as the model, registration number and location.
Coverfox will then display a wide variety of third-party insurance plans from renowned insurance providers. Go ahead and compare the premiums of each of these policies to find the best-suited, budget-friendly yet beneficial option.
Select the term of your policy, be it for 1 year, 3 years or 5 years, to determine how long you want the coverage.
You are saved from the hassle of paperwork or physical copies, as you can simply submit the required documents online.
Once you pay online through Coverfox’s secure payment gateway, you will immediately receive your policy in your email inbox.
Set reminders for the expiry of the policy and then follow the same process for an instant and smooth policy renewal–within minutes!
When you need to file a third-party bike insurance claim, it’s important to know who is at fault in the accident. Here are two situations that may arise and the steps to follow accordingly:
This includes taking photographs from various angles of the damage, collecting witness accounts and checking for CCTV footage. This becomes helpful during the process of claim assessment.
Collect details of the person at fault, including their bike number and insurance information.
Ensure to call your bike insurance company to notify them about the accident so they can aid you with the claim settlement process.
Make sure to visit the nearest police station and file an FIR that states all the facts about the accident.
To begin the compensation process, visit the Motor Accident Claims Tribunal (MACT) and file a case there with the help of a lawyer.
Be sure to submit necessary documents like the FIR copy, witness statements, and any video or photographic evidence as proof in the Tribunal.
In case you win the case in court, you are eligible to receive compensation for your damages.
Immediately call the police and report the accident to them.
Click images of the accident area, including any property damage or injuries sustained. Ask for witness statements and contacts, and also check CCTV footage if available.
Ask for details of the affected party, such as their name, phone number, and vehicle or property information.
Visit the nearest police station and file an FIR that states all the facts about the accident.
Contact your insurance provider and provide them with details of the accident. Submit documents like the FIR copy, policy papers, photographs, and other essential documents.
Once the affected party files a case with the MACT, you will be required to keep important documents like claim forms and evidence collected organised and ready for easy reference.
Based on the claim filed, the Tribunal decides how much compensation is required to be paid by you to the affected party. While the insurance provider pays the claim limit, if the amount exceeds this limit, the difference has to be paid by you.
Confused about which platform to visit to compare a variety of third-party insurance plans and finally land on the best one for you? Coverfox makes the job easier—allowing you a convenient online platform to not just review multiple plans from top insurers, but also compare bike insurance prices, select add-ons, and get discounts to finally select the one that is tailored for you! With a user-friendly interface that assures you of a clear explanation of plans, you are provided with a reliable guide to seamless insurance buying or renewing.
Here are the reasons why you cannot go wrong with Coverfox as your trusted medium:
Access plans from trusted insurers in one place.
Compare and select the best-priced policy for your budget.
Buy or renew policies in minutes without paperwork.
Our team ensures seamless assistance during purchase, renewal, or claims.
Clear insights into coverage, benefits, and exclusions for informed decision-making.
With Coverfox, you get the perfect blend of affordability, convenience, and expert guidance.
With Coverfox, you are provided with a dedicated claims-support team that is accessible to you at all times. Simply, get in touch with our Customer Support Unit on 022 4897 1018 for both your Car and Bike insurance claims.
Here is a list of documents needed for a smooth-sailing claims process:
Here are the details for the scale of compensation offered for third-party damages:
| Incident | Compensation Amount |
|---|---|
| Demise (death) 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 ₹1 lakh compensation |
The Insurance Regulatory and Development Authority of India (IRDAI) is responsible for fixing the premium rates of Third-party Bike Insurance. Here is all you need to know about it:
The only factor in determining the premium rate depends on the bike’s engine capacity. The higher the capacity, the higher the rate.
Based on whether you have chosen single or multi-year insurance plans, the rates will be higher for multi-year plans.
Based on the type of bike you own, whether a traditional or e-bike model, the premium rates for e-bikes may be significantly lower.
It is important to note that every year, the IRDAI periodically revises the premium rates, signifying a potential increase. Based on the latest updates, the Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Road Transport & Highways (MoRTH) are determining the possibility of raising third-party motor insurance premiums by an average of up to 10%, with implementation expected by October 1, 2025, or possibly April 1, 2026. To stay up to date with these rates, make sure to regularly check the official IRDAI website!
When comparing a third-party bike insurance vs. a comprehensive bike insurance policy, it is vital to note that a third-party bike insurance will only cover damages or injury to the third party, whereas a comprehensive bike insurance policy, though at slightly higher premiums, will allow enhanced protection against own-vehicle damage, third-party liabilities and natural or manmade disasters as well.
A long-term third-party bike insurance is essential to safeguard yourself and your vehicle from third-party liabilities. A longer term proves to be beneficial to prevent financial consequences in case a policy renewal deadline is missed.
Unfortunately, No-Claim Bonus (NCB) is not applicable for a Third-party bike insurance policy. This is the benefit received that allows you a discount on premiums for all the years that you have not raised a claim.
Purchasing at least third-party bike insurance is a legal mandate under the Motor Vehicles Act, 1988. If a driver is found to be on the roads without a motor insurance policy, they could face fines up to Rs 2000 and risk liability for all kinds of damages. Repeat offences may also lead to an increased fine of up to Rs. 4,000 and/or imprisonment of up to 3 months.
Vehicle ownership can be carried out both offline and online, either through the RTO or utilising the online platform of Parivahan Sewa. In case of transfer of ownership, it is vital that the new vehicle owner informs the insurance company and provides the necessary documents for the update.
