What is Third Party Two Wheeler Insurance?

Third-party bike insurance covers all financial losses suffered by a third-party or person following an accident caused by an insured two-wheeler. The insurer covers all the expenses required to meet the financial liabilities. In case of damage to a property, the insurer shall release Rs. 1 Lakh as compensation to the owner.

Also known as Liability Only Insurance, third-party two-wheeler insurance was made mandatory under section 146 of the Motor Vehicles Act, 1988. It is a basic risk coverage provided by the insurer and does not provide insurance protection to the bike or its owner. 

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Third-Party Two-Wheeler Insurance

As soon as you buy a two-wheeler, the seller asks you if you’d like to get third-party bike insurance or comprehensive insurance. While comprehensive insurance is self-explanatory, one often wonders “What is third-party insurance for bike?

 

Third-party bike insurance covers all financial losses suffered by a third-party or person following an accident caused by an insured two-wheeler. The insurer covers all the expenses required to meet the financial liabilities. In case of damage to a property, the insurer shall release Rs. 1 Lakh as compensation to the owner. Also known as Liability Only Insurance, third-party two-wheeler insurance was made mandatory under section 146 of the Motor Vehicles Act, of 1988. It is a basic risk coverage provided by the insurer and does not provide insurance protection to the bike or its owner.

 

It is a good idea to select an all-round bike insurance policy that provides coverage for third-party legal responsibility as well as financial protection against losses brought on by natural or man-made events.

How To Buy A Third-Party Bike Insurance Policy Online?

The digital age has made all types of online transactions easier and faster. You can also buy third-party two-wheeler insurance instantly online. Several insurers offer bike insurance policies on Bajaj Markets. It is a comprehensive platform where you can see third-party bike insurance price from multiple insurers and compare them. Below are the steps you need to follow to buy third-party bike insurance online.

 

1. Head over to the ‘Bike Insurance Premium Calculator’ page on the Bajaj Markets 

 

2. Fill up the details by entering your two-wheeler registration number and mobile number.

 

3. Click on the ‘Get Quote’ tab and see 3rd party bike insurance price listings.

 

4. Enter all required details and choose a bike insurance plan that suits your needs.

 

5. Pay your premium online according to the third-party bike insurance price.

 

6. Your bike insurance policy will be sent to your email address within a few hours.

Reasons to buy a Third-Party Bike Insurance

Now that you understand what is third-party insurance for bikes, it is time to understand the reasons behind buying them. While it is mandated by law, there are other reasons too. A third-party two-wheeler insurance policy offers the bike owner, financial and legal protection against losses incurred by a third-party person or property involved in an accident with the insured bike.

Below are the benefits of buying third-party bike insurance:

Cost-effective:

As regulated by IRDAI, third-party bike insurance provides maximum benefits with attractive and affordable premium rates.

Quick and easy policy purchase:

Most third-party two-wheeler insurance policies are available online with minimum documentation formalities.

Financial assistance and legal coverage:

Third-party bike insurance covers any financial and legal expenses arising from any third-party damage. 

Helps to avoid unnecessary penalties:

As per the Motor Vehicle Act, all the two-wheelers must be insured upon purchase. Third-party two-wheeler insurance protects you from unwanted legal hassles and penalties.

Personal Accident Cover:

The IRDAI has made Personal Accident Cover compulsory for all forms of automobile insurance coverage in India. This covers medical and hospitalisation costs in case of an accident. In the event of your unfortunate demise in an accident involving the insured bike, the aforementioned coverage also offers a death benefit to your family.

How does a Third-Party Two Wheeler Insurance work?

The parties that may be involved in a bike insurance contract are described as follows:

 

  • The first party: It is the party that owns the bike and drives it.

  • The second party: The second party is the insurance company.

  • The third-party: The third-party refers to any person or property not associated with the first or second parties.

If a third party is injured in an accident that was caused by the insured bike, all associated medical costs and hospitalisation fees are covered by the third-party bike insurance. The stated insurance also covers disability claims resulting from third-party damage injuries and third-party death claims stemming from the accident.

 

A two-wheeler insurance policy for third parties is also required to pay for any damage the covered bike causes to a third party's vehicle or property. If a third-party bike suffers whole or partial damage in an accident involving the insured bike, the financial obligations resulting from those damages are covered by the third-party bike insurance policy of the insured bike.

 

If a third party files a lawsuit as a result of the damages the insured bike caused, a third-party two-wheeler insurance policy will also cover the expense of the accompanying legal liabilities.

What Is Covered and Not Covered Under Third-Party Two-Wheeler Insurance?

Inclusions

Exclusions

A third party who is wounded in an accident or who sustains an injury that leaves them physically disabled and prohibits them from returning to work may file a claim for medical expenses or lost wages.

Any damages to the insured two-wheeler.

If there is third-party property damage, the insurer is obligated to pay up to Rs. 1 lakh in damages under the terms of the third-party two-wheeler insurance that was purchased for third-party protection.

Claims arising due to Contractual Liability.

Under third-party bike insurance, insurers also offer compensation to the dependents of the owner or rider of the insured bike, if they die in an accident.

Damages or losses caused due to accidents that happened outside the prescribed geographical region in the insurance policy.

Within third-party bike insurance, if the owner or rider of the insured bike happens to sustain permanent total disability due to the accident, then that person is eligible for compensation. The compensation amount depends on the degree of disability.


The accidental losses caused due to illegal activities, speeding, riding someone else’s bike or riding under the influence of alcohol

 

Any damages caused directly or indirectly due to radioactivity from nuclear fuel or nuclear waste.

 

Accidental damages or loss incurred in connection with the invasion by foreign enemies, warlike operations, civil war, mutiny rebellion, military or usurped power.

Pros of Third-Party Bike Insurance Premium

Purchasing third-party bike insurance is a sure-shot way to protect yourself against financial and legal liabilities in case of a mishap. Below are the benefits of buying third-party bike insurance:

Easy Documentation: 

All third-party insurance providers offer a simple online procedure for obtaining third-party two-wheeler insurance that eliminates the need for pointless paperwork.

Simple Online Process: 

You can easily buy third-party insurance online by entering the requisite details, selecting the plan that you like best and completing the payment in a few quick steps.

Relief from third-party related Financial Responsibility:

By purchasing a third-party bike insurance coverage, you are shielded from any obligation to third parties and are relieved of the responsibility of covering any associated costs in case of an accident.

Law Enforced: 

A basic third-party liability plan is a legal mandate for all bike owners and thus buying it is important for all law-abiding citizens.

No Worry:

If your covered two-wheeler is involved in an accident, having third-party bike insurance protects you from the stress and inconvenience of having to pay for injuries to third parties or damage to their property or vehicles.

Cons of Third-Party Bike Insurance Premium

Below are the drawbacks associated with third-party bike insurance:

Does Not Cover Own Damages:

In the case of an accident, your insured bike will not be covered by a third-party bike insurance plan. Only your own damage cover or a comprehensive bike insurance plan may pay for these damages.

Doesn't Cover Natural Catastrophes: 

Your two-wheeler may be damaged by natural calamities like floods, earthquakes, landslides, etc. However, third-party insurance will not cover these losses.

No Customised Plans:

A third-party two-wheeler insurance policy cannot be customised with add-ons like Zero Depreciation, Roadside Assistance, Engine Secure, and others since third-party bike insurance costs are standardised. Additionally, since these riders are available only for comprehensive or personal damage insurance policies, you will not get the no-claim bonus benefits on your third-party bike insurance costs.

Scenarios of Third-Party Bike Insurance Coverage

Below are some scenarios where third-party bike insurance coverage is applicable:

SCENARIO

COVERAGE

Injuries or fatalities caused by your covered bike to third parties

The policy will pay for any medical and hospital bills incurred by the third party. It also includes claims for disabilities and the death of a third party.

Damages to a third party's bike or property

The financial repercussions of these losses are covered by the third-party two-wheeler insurance for your bike.

Legal consequences

The financial cost of legal responsibilities in case of an accident is covered by the third-party two-wheeler insurance policy.

How To Renew A Third-Party Bike Insurance Policy Online?

Renewal of your third-party two-wheeler insurance is a pretty straightforward process. It is easier if you do it online. Check your policy’s expiry date to avoid penalties and fines. Follow the below-mentioned steps to do so:

 

1.  Visit your insurer’s official website.

 

2.  Enter details like your existing insurance policy number, vehicle registration number and mobile number.

 

3.  Check your insurance renewal amount.

 

4.  Make the premium payment online.

 

5.  Your renewed bike insurance will be sent to you instantly.

 

 Read More: Bike insurance renewal

How To Claim Third-Party Insurance For A Bike?

In case of an accident, there are two possibilities. You may have caused the damage or incurred it. In both cases, the third-party bike insurance claim procedure is simple. Both are mentioned below.

If you have caused the damage

  • Click clear pictures of the damages caused due to the accident and note down all the required details.

  • Inform your insurer about the accident immediately and act according to their instructions.

  • Register an FIR at the nearest police station in case of a major accident.

  • With the help of a lawyer, you should file a case at the Motor Accident Claims Tribunal Court.

  • Submit the required documents and details to the court.

  • Share the court’s order with the insurer and get compensation for the expenses.

If you are the victim

  • Take the insurance details of the third party involved in the incident and inform their insurance provider about the incident.

  • Based on the information provided to the insurer, your case will be transferred to the Motor Insurance Claim Tribunal.

  • Submit the required documents and details to the court.

  • The court will decide and instruct the insurance company to pay the compensation amount.

Read More: Car Insurance Claim Process

Difference Between Comprehensive And Third-Party Two-Wheeler Insurance

Before buying online third-party bike insurance, it is important to know all the available options. Comprehensive and third-party insurance are two options when buying two-wheeler insurance. Let us understand the difference between comprehensive and third-party two-wheeler insurance plans.

Key Differences

Third-Party Two-Wheeler Insurance

Comprehensive Two-Wheeler Insurance

Legal Mandate

Mandatory by Law

Not Mandatory

Insurance Coverage

Covers only third-party damages

Covers third-party as well as own-damage

Premium Cost

Lower premiums

Higher premiums

Add-on Covers

Only personal accident cover

Add-on covers like Engine Protection, Zero Depreciation, Roadside Assistance,  Return to Invoice, Consumable Cover, etc.

Documentation Procedure

Comparatively less documentation is required.

More documentation is required.

Conclusion

Third-party bike insurance is a legal mandate and acts as a safety net when it comes to the financial implications during a mishap. Injury or damage to a third party or property during an accident can not only result in financial losses but may also lead to further legal liabilities. In such cases, two-wheeler insurance comes in handy. You can check the bike insurance for third-party coverage prices online and choose the best insurer. Whether it is a third-party or comprehensive two-wheeler insurance plan, Bajaj Markets is the platform where you can find various insurance policies offered by different partners. You can secure top-class coverage for your two-wheeler at a reasonable cost, enjoy exclusive benefits and much more. So, choose wisely and stay safe!

 

Bajaj Allianz General Insurance Policy

Acko General Insurance policy

HDFC ERGO General Insurance policy

Category

Third-party

Third-party

Third-party

Price

Starting from Rs. 538. (- + GST (effective 1st April 2022)

Starting from Rs. 538. (- + GST (effective 1st April 2022)

Starting from Rs. 538. (- + GST (effective 1st April 2022)

Insured Declared Value

Depends on the make and model.

Depends on the make and model.

Depends on the make and model.

Coverage

Personal Accident Cover, Third-party Property Damage, Third-party Injuries

Personal Accident Cover, Third-party Property Damage, Third-party Injuries

Personal Accident Cover, Third-party Property Damage, Third-party Injuries

Tenor

One year

One year

One year

Premium

Depends on the make, year and model.

Depends on the make, year and model.

Depends on the make, year and model.

Personal accident cover

Available

Available

Available

Claim settlement

98%

95% for FY 2020-21

99.8% for FY 2020-21

Key replacement cover

Not included

Not included

Not included

No claim bonus cover

Not included

Not included

Not included

Depreciation protection

Not included

Not included

Not included

Engine protect cover

Not included

Not included

Not included

Roadside assistance

Not included

Not included

Not included

Consumable expenses

Not included

Not included

Not included

Claim registration process

Digital

Digital

Digital

FAQs on Third Party Bike Insurance

  • ✔️What are some of the risks that your third-party bike insurance policies cover?

    Some of the hazards covered by third-party bike insurance policies include

    • Death or injury to a third party

    • Any damage caused to a third party

    • Some policies may also include personal accident insurance.

  • ✔️How to check bike insurance details?

    The Ministry of Road Transport & Highways website is accessible from the public domain. Simply input your bike's registration number on the internet to see your insurance status. Alternatively, you could also install the mParivahan App on your smartphone and access your bike’s insurance status.

  • ✔️Is online bike insurance valid?

    Yes, third-party bike insurance coverage bought online or through a third party is just as legitimate as one that was bought in person.

  • ✔️Is two-wheeler insurance compulsory in India?

    Yes, the Motor Vehicles Act requires all vehicle owners to purchase at least third-party insurance.

  • ✔️Are there any discounts available on bike insurance premiums?

    If you had no claims during the previous policy year, you might get NCB (No Claim Bonus) benefits of up to 50% upon policy renewal.