The exhilaration of riding a bike and the sense of freedom it offers are undeniable. Still, it’s crucial not to overlook the potential risks and uncertainties that come with this mode of transportation. Just as you protect your car, home, and loved ones, it’s equally essential to safeguard your two-wheeler vehicle against unforeseen events.
Whether you use your bike for daily commuting, weekend joyrides, or long-distance trips, accidents can happen at any time, no matter how cautious you may be. From minor fender benders to significant collisions, the financial and legal repercussions can be overwhelming without the right insurance coverage. This is where buying third party bike insurance at least comes into the picture.
While many of you would think of 2 wheeler third party insurance to abide by the laws, it actually benefits you in more ways than that. In this detailed guide, we will cover various sides of third party bike insurance in one place.
What is Third Party Bike Insurance?
Third party two wheeler insurance is a type of two wheeler insurance coverage that is specifically designed for bike owners. It provides financial protection against liabilities arising from damages or injuries caused to a third party in the event of an accident where the bike owner is at fault.
In simple words, when you ride a bike, you share the road with other vehicles, pedestrians, and property. If you are responsible for causing harm to someone else’s property or causing injuries to another person, you may be legally liable to compensate them for the damages.
Third party bike insurance covers these liabilities by paying for the costs associated with the damages or injuries caused to the third party. This includes expenses such as repairing the damaged property, medical bills, and legal fees that may arise from a lawsuit.
Here, it is important to note that 2 wheeler third party insurance does not cover damages or loss to your own bike. For that, you would need comprehensive bike insurance, which provides coverage for your own bike against theft, accidents, natural disasters, and other incidents.
As per law, it is mandatory for bike owners in India to buy at least third party two wheeler insurance. This requirement is in place to ensure that individuals are financially responsible for any harm they may cause while riding their bikes.
By opting for third party bike insurance, you not only fulfill the legal obligations but also gain peace of mind knowing that you have financial protection in case of an unfortunate accident. It allows you to focus on enjoying your rides while being prepared for any potential liabilities that may arise.
It’s worth noting that specific coverage and policy terms may vary between insurance providers and regions, which is why it’s important to review the terms and conditions of any insurance policy you consider carefully.
What are the Benefits of Buying Third Party Two Wheeler Insurance?
Third party bike insurance offers several benefits to bike owners, including the following:
1. Legal compliance
In India, having at least third party two-wheeler insurance is a legal requirement. By purchasing this insurance, you ensure compliance with the law and avoid potential fines, penalties, or even legal consequences.
2. Financial protection
Road accidents can lead to significant financial liabilities, especially if they result in property damage, injuries, or even fatalities. Third party bike insurance provides coverage for the damages or injuries caused to a third party, hence relieving you of the financial burden. The insurance company will handle the costs, including property repair, medical expenses, and legal fees, up to the specified coverage limit.
3. Peace of mind
Knowing that you have third party two wheeler insurance coverage brings peace of mind while riding your bike. It offers a safety net against unexpected incidents and reduces your worries about potential financial hardships resulting from accidents. With this type of insurance in place, you can focus on enjoying your rides without constant anxiety about the potential consequences.
4. Protection against lawsuits
In the unfortunate event of an accident where you are at fault and cause harm to a third party, they may take legal action against you to seek compensation. Third party bike insurance provides you with a defense against such lawsuits, covering legal expenses and representing your interests. It saves you from the burden of handling legal proceedings and ensures that you have the support you need during challenging times.
5. Social responsibility
By purchasing third party two wheeler insurance, you also demonstrate responsible behavior and consideration for others sharing the road. In case of an accident, having insurance means that the affected party receives the necessary compensation promptly, which will help them recover from the damages and injuries they have suffered.
Third party insurance typically offers a more cost-effective option compared to comprehensive insurance. It focuses solely on covering damages or injuries to the third party and does not include coverage for your own bike. This makes it a more affordable choice for riders who prioritize meeting legal requirements and protecting against third-party liabilities.
More About the Compensation Offered Under Third Party Bike Insurance
The compensation offered under third party bike insurance in India is designed to cover the financial liabilities arising from damages or injuries caused to a third party in an accident where you, as the bike owner, are at fault. The compensation provided is determined based on the following categories:
If your bike causes damage to someone else’s property, such as another vehicle or infrastructure like fences or buildings, the third party bike insurance may cover the costs of repairing or replacing the damaged property. The insurance company will assess the extent of the damage and provide compensation accordingly, up to the specified coverage limit.
In case of injuries caused to a third party, the insurance policy will cover the medical expenses incurred by the injured party. This includes costs associated with hospitalization, medication, surgeries, and rehabilitation, among others. Compensation is provided based on the severity of the injuries and the medical treatment required.
It’s important to note that compensation under third party bike insurance is subject to certain limits specified by the Insurance Regulatory and Development Authority of India (IRDAI). These limits are periodically revised and set by the regulatory authority.
The following table defines the compensation offered under a third-party two wheeler insurance policy:
|Nature of the injury
|Loss of two limbs and sight of two eyes
|100% of the sum insured
|Loss of one limb and sight of one eye
|50% of the sum insured
|100% of the sum insured
|Permanent total disabilities
|100% of the sum insured
You should also know that:
- These percentage of coverage may differ from one insurer to another.
- The compensation under third party bike insurance is also subject to the validity of the driving license of the driver-owner and the vehicle’s RC.
Also Read: A Complete Guide to IDV in Bike Insurance
Third Party Bike Insurance Price List
The IRDAI sets the premium to be charged to 2 wheeler third party insurance policies based on their cubic capacity. The following table covers the most recent premium rates for third party bike insurance:
|Up to 75 cc
|From 75 to 150 cc
|From 150 to 350 cc
|More than 350 cc
Note: These premiums are subject to change as per IRDAI notifications.
Long Term 2 Wheeler Third Party Insurance Price List
As per the recent changes in the Motor Vehicle Act, the IRDAI has mandated insurers to offer long term third party two wheeler insurance policies to new bike owners (w.e.f from June 2022). The following table covers the revised premium rates for long term third party bike insurance plans:
|Up to 75 cc
|From 75 to 150 cc
|From 150 to 350 cc
|More than 350 cc
Why Should You Buy Third Party Bike Insurance?
- It is mandatory in India to have at least third party bike insurance to comply with the law.
- It covers the costs of damages or injuries caused to a third party, saving you from potential financial liabilities.
- Having insurance brings a sense of security, knowing you are prepared for unexpected accidents.
- It provides legal representation and covers legal expenses in case of a third party filing a lawsuit against you.
- Buying third party bike insurance shows responsible behavior and consideration for others on the road.
- It offers a cost-effective option compared to comprehensive insurance and focuses solely on third-party liabilities.
- It ensures you meet your legal responsibilities and provide compensation to those affected by your actions.
What are the Inclusions of Third Party Two Wheeler Insurance?
In India, third party two-wheeler insurance typically includes the following coverage:
- Third party liability coverage that protects you against legal liabilities for damages or injuries caused to a third party due to an accident where you are at fault
- Property damage that covers the costs of repairing or replacing the property of a third party that has been damaged by your bike in an accident ( up to Rs. 7.5 lakh)
- Personal Injury cover that provides coverage for medical expenses, treatment costs, and compensation for injuries sustained by a third party due to the accident
- Death benefit offered In case of the unfortunate event of a fatality resulting from the accident to the family or legal heirs of the deceased third party
Recommended Read: All About Bike Insurance Calculator
What are the Exclusions Related to Third Party Bike Insurance?
While third party bike insurance provides coverage for certain liabilities, it also has the following exclusions in general:
- Third party bike insurance does not cover damages or loss to your own bike. Any repairs, replacements, or theft-related expenses for your bike are not covered under this type of policy.
- It does not provide coverage for injuries sustained by you, the policyholder, in an accident. It only covers injuries and medical expenses of third parties involved in the accident.
- If the accident or damages caused by your bike are deemed intentional or deliberate, they may be excluded from coverage under third party insurance.
- If you are found riding the bike under the influence of alcohol or drugs at the time of the accident, the insurance policy may not cover the resulting damages or liabilities.
Disclaimer: The exact insurance inclusions and exclusions depend on the selected policy and insurer.
How to Buy Third Party Two Wheeler Insurance?
You have several options available to buy third party bike insurance. Here’s the breakdown of different ways following which you can purchase it:
Directly from insurers offline
You can visit the physical office or branch of an insurance company offering two-wheeler insurance and buy third party coverage directly from them. This can also be done by interacting with their representatives/agents, discussing your requirements, and completing the necessary paperwork to purchase the insurance policy.
Directly from insurers online
Many insurance companies provide the convenience of buying third party bike insurance online through their official websites. You can visit the insurer’s website, navigate to the two-wheeler insurance section, provide the required details, select the third party coverage option, and make the payment online. The policy documents are usually sent to your registered email address.
Through insurance aggregators
Insurance aggregators or online insurance marketplaces allow you to compare and purchase insurance policies from multiple insurers in one place. You can visit these aggregator websites or use their mobile applications, enter the necessary details about your bike and requirements, and compare the available options before buying 3rd party bike insurance online. Once you decide on the suitable plan, you can complete the purchase process through the aggregator platform.
When buying third party two wheeler insurance, regardless of the channel you choose, it’s important to provide accurate and complete information about your bike, personal details, and any other required information. This ensures that you receive the appropriate coverage and the insurance company has the necessary information to process your policy correctly.
How to Renew Third Party Bike Insurance?
Renewing your third party bike insurance policy is a straightforward process. Here are the general steps involved:
- Review the renewal date
Firstly, you need to determine the renewal date of your bike insurance policy. It is usually mentioned in the policy document or on the insurance company’s communication (such as renewal reminders).
- Contact your insurance provider
Reach out to your insurance provider before the renewal date. You can contact them through their customer service helpline, visit their branch office, or access their online renewal portal. This can also be done through online aggregator portals.
- Provide policy details
When contacting your insurance provider, keep your policy details, such as the policy number, your personal information, and your bike’s details handy. This information helps the insurance company locate your policy in their system.
- Proceed with renewal documentation
The insurance company may require you to submit certain documents for the renewal process. This could include a copy of your previous policy, your vehicle registration certificate, or any other documents specified by the insurer.
- Make premium payment
Pay the premium for renewing your third party bike insurance policy. You can typically make the payment using various methods, such as online payment options (credit/debit cards, net banking, digital wallets) or offline methods (cash, cheque, demand draft). Follow the instructions provided by your insurance provider for premium payment.
- Wait for policy confirmation
Once the premium is paid, you will receive a confirmation of your policy renewal. This confirmation can be in the form of a renewed policy document sent to your registered email address or physical copy, depending on your chosen communication preference.
- Review policy details
Take the time to review the renewed policy document. Ensure that all the details are accurate, including your personal information, bike details, coverage, and any additional endorsements or add-ons you may have opted for.
- Save the policy document
Keep a copy of the renewed policy with you for future reference. It is important to have easy access to your policy details, especially when you need to make a claim or provide proof of insurance.
Remember, it’s advisable to initiate the renewal process before the expiration of your current policy to avoid any lapse in coverage. Timely renewal ensures continuous protection against third-party liabilities and compliance with legal requirements.
What are the Differences Between Comprehensive and Third Party Bike Insurance?
The following table highlights the key differences between comprehensive and third party bike insurance:
|Comprehensive Bike Insurance
|Third Party Bike Insurance
|Covers damages to your own bike and third-party liabilities
|Covers only third-party liabilities
|Own Bike Damages
|Covers repairs or replacement for damages to your bike
|Does not cover damages to your own bike
|Personal Injury Coverage
|Provides coverage for injuries sustained by you
|Provides coverage for injuries sustained by a third party
|Property Damage Coverage
|Covers damages to third-party property
|Provides coverage for theft of your bike
|Does not cover theft of your bike
|Natural Disasters Coverage
|May include coverage for damages due to natural disasters
|Does not include coverage for damages due to natural disasters
|Allows for additional coverage options (e.g., personal accident cover, zero depreciation cover)
|Generally does not offer optional add-ons
|Usually higher premium due to wider coverage
|Usually lower premium due to limited coverage
|Not a legal requirement, but strongly recommended
|Mandatory in India to comply with the law
What are the Steps to File a Claim Under 2 Wheeler Third Party Insurance in India?
Filing a claim under third party two wheeler insurance in India typically involves the following steps:
Step 1: Inform the insurance provider
In case of an accident, immediately inform your insurance provider about the incident. Contact their customer service helpline or claims department to initiate the claim process. Provide accurate details about the accident, including the date, time, location, and a brief description of what occurred.
Step 2: Lodge a police complaint
For third party insurance claims, it is essential to file a First Information Report (FIR) or a police complaint. Visit the nearest police station and provide them with the necessary information regarding the accident. Obtain a copy of the FIR or police complaint as it will be required for the claim process.
Step 3: Gather relevant documents
Collect relevant documents that are required to support your claim. This may include the FIR or police complaint, your insurance policy documents, bike’s registration certificate, your driving license, and any other supporting evidence, such as photographs of the accident scene, witness statements, or medical reports if there are any injuries involved.
Step 4: Complete claim forms
Fill out the claim form provided by your insurance company. These forms may vary depending on the insurer, but they typically require details about the accident, policyholder information, bike details, and a description of the damages or injuries caused to the third party.
Step 5: Submit the claim documents
Submit all the necessary documents, including the filled-out claim forms, along with the supporting evidence, to the insurance company. Ensure that you keep copies of all documents for your records.
Step 6: Cooperate with claim assessment and investigation
The insurance company will assess the claim and may conduct an investigation if required. They will evaluate the extent of the damages or injuries caused to the third party and verify the provided information.
Step 7: Proceed with claim settlement
Once the claim assessment is complete, the insurance company will determine the liability and the eligible compensation amount under the policy. If the claim is approved, the insurer will initiate the settlement.
Step 8: Oversee the payment of compensation
The insurance company will arrange for the payment of compensation to the third party as per the terms and limits of the policy. The compensation is usually paid directly to the third party, covering their property damages or medical expenses as per the established claim.
Throughout the claim process, it’s important to cooperate with the insurance company, provide accurate information, and respond promptly to any requests or queries they may have. Additionally, it’s advisable to keep track of the claim status and maintain open communication with the insurance provider to ensure a smooth and timely resolution.
Is third party bike insurance mandatory in India?
Yes, as per the Motor Vehicles Act, it is mandatory for all bike owners in India to have at least third party insurance coverage.
What does third party two wheeler insurance cover?
Third party bike insurance covers the financial liabilities arising from damages or injuries caused to a third party in an accident where the bike owner is at fault. It includes property damage and personal injury coverage for the third party.
Does third party bike insurance cover damages to my own bike?
No, third party bike insurance does not cover damages to your bike. It solely provides coverage for damages or injuries caused to a third party.
Can I purchase third party bike insurance online?
Yes, you can buy third party bike insurance online through insurance company websites or insurance aggregators, each of which offers a convenient and hassle-free option for purchasing the policy.
How long is the coverage period for third party bike insurance?
The coverage period for third party bike insurance policies in India is typically one year. You need to renew the policy annually to maintain continuous coverage.
Can I modify the coverage or add-ons in third party bike insurance?
No, third party bike insurance has standard coverage set by regulatory authorities and does not offer additional options or add-ons. The coverage is limited to liabilities towards a third party.
What happens if I don’t have 2 wheeler third party insurance?
Riding without valid third party two wheeler insurance is illegal in India and can result in penalties, fines, or legal consequences. Additionally, you would be personally liable for any damages or injuries caused to a third party in an accident.
Can I upgrade to comprehensive insurance from third party insurance?
Yes, you have the option to upgrade to comprehensive bike insurance, which provides coverage for your bike as well as third party liabilities. You can discuss the upgrade with your insurance provider and make the necessary changes to your policy.