Third Party Bike Insurance: Buy/Renew Instantly

Imagine you as a bike owner accidentally run into a pedestrian and collides, which leaves that other person injured. Now, it is obvious that another person will demand compensation from you for his losses which will leave you in the middle of financial and legal complications. This is where your third-party bike insurance comes in handy, which offers immediate protection against any damages or losses caused by your bike to another person or property.

Here’s a detailed guide on third-party bike insurance, its premium, inclusions and exclusions and how it helps you to reduce your financial burdens.

What Is Third Party Bike Insurance?

As per Motor Vehicles Act of 1988, a third-party bike insurance is compulsory for all the bike riders in India. This kind of  insurance coverage provides the legal and financial help to bike owners against any kind of damages caused to third -party individuals, vehicles or property.

A third-party insurance for a bike is very crucial as it provides a safety net against all the losses caused to the other party’s person or their property. It also covers the death of a third party in an accident if caused by the insured bike. A third party insurance coverage helps in reducing the financial burdens as a bike insurance policy is there to cover the injured party’s claims.

Remember, if any bike owner does not buy a third-party insurance policy, a traffic policy may issue a fine of INR 2,000.

However, third party coverage is very limited and basic which can be further improved by adding an own-damage cover or a personal accident cover to your existing bike policy.

Related Article: What Is Bike Insurance: Meaning, Types & Coverage

The third-party premiums have been already decided by the insurance regulator of India, IRDAI, which are as follows for the financial year 2022-23:

How does Third Party Bike Insurance Work?

A third -party insurance policy’s coverage for bike has total of three parties involved, such as:

• Bike owner-rider which is referred to as a “first party”.
• Insurance company which becomes a “second party”.
• Lastly, any individual or property owner other than the rider is known as the “third party”. 

Now, let’s understand how this kind of policy works in real-life situation:

If suppose any other person or other property has been injured in an accident which has been collided by the insured bike. In such a situation, the other party injured would ask to cover all the damages from the bike owner on an immediate basis. Now, since a bike owner is insured, the third-party policy will cover all such medical charges and bills associated with this incident.

Factors That Affect Your Third Party Bike Insurance Premium

Engine Capacity: Engine power of your bike is determined by its horsepower, fuel consumption and its cubic capacity. Bikes with larger engines are more expensive to insure than bikes with smaller engines.

Inflation Cost: Increasing cost of spare parts, replacement parts have a direct affect on premium cost.

Increasing Number of Claims: As the number of bikes are rapidly increasing on the road which also increases the chance of accidents. The larger number of bike accidents calls for an increasing number of claims which results in an increase in total premium.

What is Covered in Third Party Bike Insurance? 

A third party insurance policy covers the following components: 

• Third-Party Property Damage: A bike rider having a third party insurance is safeguarded from any financial burden which might arise if one has to pay towards third party property damages.
• Third-Party Liabilities: Similarly, the insured is also covered against all the medical expenses which are incurred on a third party person, who has been hurt by your insured bike.
• Personal Accident Cover: Get coverage for personal accident policy (CPA), worth INR 15 lakh to safeguard you against any medical contingencies.

What is Not Covered in Third Party Bike Insurance?

• Gradual wear and tear and regular depreciation
• Contractual liabilities
• Damages to a third-party person and property arising out of war, nuclear risks, and radioactive contaminants.
• Any damages caused due to irresponsible behavior of the driver.
• If a bike is involved in racing, speeding tests or any kind of adventurous activities.

Why Do We Need Third Party Bike Insurance?

Mandatory: A third party bike  insurance is very crucial as it mandates the bike owners to have it compulsorily in India to cover third party liabilities. 

Covers third-party losses: In case of an accident caused by the insured bike resulting in any kind of damages to a third-party vehicle or their property, then the policy is bound to provide coverage against all such damages.

Cost-effective: As the premium for a third-party bike insurance policy is pre-decided by IRDAI, which makes the insurance policy very much affordable for all.

Convenient to purchase: It is very easy and simple to purchase a third party bike insurance policy online or offline from your chosen insurance company. 

Step-By-Step Guide on How to Buy Third Party Bike Insurance Online

Step1: Visit the official website of an insurance company and click on buy “Bike Insurance Policy”.

Step 2: Enter the important details such as bike registration number

Step 3: Enter your other details such as name, contact information and email id and then click on “Get Your Quote”.

Step 4: All the quotes in the selected category will be shown.

Step 5: Select the insurance policy which suits your requirements and price point.

Process to Claim Third Party Bike Insurance

Here is the procedure to file claim for third party bike insurance policy:

• Click a photo of the place where the incident has occurred and notice the relevant information related to the incident.
• Register an FIR at the nearby police station where the accident took place.
• The policyholder is required to submit a case with the Motor Accident Tribunal Court and provide all relevant documents. 
• Once the judgment by the court is out and all the formalities are done, submit the court orders to the insurance company. 
• As a last step, the insurance will pay for the damages or for any losses as decided by the court.

Best Third Party Bike Insurance Companies In India

• New India Assurance
• HDFC ERGO
• SBI General
• ICICI Lombard
• Reliance General
• Tata AIG
• Bajaj Allainz
• Acko General
• Go Digit
• IFFCO Tokio
• Kotak Insurance
• Royal Sundaram
• Oriental Insurance