Third Party Bike Insurance

Third-party two-wheeler insurance cover is the most basic type of two wheeler insurance plan available. It provides coverage to the policyholder for all third-party liabilities (bodily injuries, death, and/or property damage) caused due to a road accident or any other mishap involving the insured’s two-wheeler. While the amount of compensation in case of third party bodily injury/death is decided by a court of law, the extent of compensation for third party property damage is limited to Rs. 1 lakh.

Importance of Bike Insurance Third Party Policy Online

It is mandatory in India for every two-wheeler owner to have at least a 3rd party two-wheeler insurance, as per the Indian Motors Tariff 2002. A 3rd party two-wheeler insurance policy is the most basic insurance coverage. Buying a third party bike insurance online in India is secure and easy.

Key Features of Third Party Bike Insurance

Before opting for a third party bike insurance plan, you should know some of its basic features:

What All Is Covered Under A Third Party Two-Wheeler Cover?

• Any third party property damage caused by the insured’s two-wheeler is covered under the third party/liability only insurance policy up to Rs.1 lakh.

• The compensation amount in case of third party bodily injuries/death is decided by a court of law. In case of loss of both the limbs or both eye sights/ permanent disability or death of a third party, the insurer provides 100% compensation. Whereas, in case of partial disabilities like bodily injuries or loss of one limb or loss of one eyesight, the insurer provides 50% compensation.
• One can buy coverage for the pillion rider by making an additional premium for personal accident cover.
• A necessary PA or Personal Accident cover for the driver of the insured two-wheeler of Rs. 15 Lakh.

What is Not Covered Under a Third Party Two-Wheeler Insurance Plan?

It is very crucial to know what all is not covered by your third party bike insurance plan so that there are no confusions at the time of making a claim. Some of the common situations are as follows:

• Under a third party bike insurance plan, a policyholder would not receive any coverage concerning loss or damage to their own insured bike.
• Your respective insurance provider would not offer coverage to you under a bike insurance plan in case you were drunk driving or were riding your insured bike without a valid driving license.
• In case the accidents happen outside the geographical boundaries of the cover, then such mis happenings are not eligible for claim.
• Any claim that arises because of contractual liabilities are not covered under a third party bike insurance plan.
• Any claims that arise because of damage or loss caused by war or war-like conditions, radioactive contaminants are also not offered any compensation by the insurance provider.

Third Party Bike Insurance Premium Rates

Third Party Bike Insurance is a mandatory cover for all bike owners in India as per the Motor Vehicles Act. It provides coverage against legal liabilities arising from damages caused to a third party by the insured bike. The premium rates for Third Party Bike Insurance are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are revised annually. Here are the factors that typically influence the premium rates for Third Party Bike Insurance:

1. Engine Capacity:

The cubic capacity (cc) of your bike's engine is a major determinant of the third-party insurance premium. Bikes with higher engine capacity tend to have higher premium rates.

2. Vehicle Age:

While the age of the vehicle doesn't significantly affect the third-party premium, older vehicles might have a slightly lower premium compared to newer ones.

3. Location:

The area where your bike is registered can also impact the premium. Urban areas might have higher premium rates due to the increased risk of accidents and claims.

4. IRDAI Guidelines:

The premium rates are largely determined by the guidelines set forth by IRDAI. The authority revises the rates annually based on various factors like accident rates, inflation, and other economic factors.

5. No Claim Bonus (NCB):

Although NCB primarily affects the damage premium, having a good NCB can overall reduce the cost of your insurance if you opt for a comprehensive policy.

6. GST:

Goods and Service Tax (GST) is also applicable to the premium amount.

Here's a general framework for third party two wheeler insurance premium rates or third party bike insurance price list 2023 based on engine capacity as per IRDAI's guidelines:

• Up to 75 cc: Lower premium rate.
• Between 75 cc to 150 cc: Moderate premium rate.
• Between 150 cc to 350 cc: Higher premium rate.
• Above 350 cc: Highest premium rate.

It's advisable to check the latest IRDAI guidelines or consult with insurance providers to know the exact premium rates for third-party bike insurance for your specific bike model and engine capacity.

Long Term Third Party Cover for Five Years for New Bike Owners

As per the Insurance Regulatory and Development Authority of India (IRDAI), the owners of new two-wheeler vehicles are required to hold a third-party liability policy of five years for which they should pay upfront. To acquire such a multi-year or long-term insurance plan is compulsory while buying a bike or scooter.

The long-term third party two-wheeler insurance will offer coverage for damages incurred by the third party through bodily injuries, death and property damage due to the insured vehicle. But, it will not compensate for any sort of damages which are sustained by the two-wheeler of the insured person. This insurance policy is economical in comparison to a comprehensive bike insurance policy due to its limited coverage. However, there are various benefits that policyholders can avail themselves with this long-term third party cover. Some of which are as follow:

1. Completes Legal Compulsion - To hold a two-wheeler third party insurance is mandatory in India. Also, for new two-wheeler buyers, it is also a compulsion to own long-term third party insurance which is of 5 years. Hence, the purchase of a long term third party policy will complete your legal compulsion.
2. Provides Financial Assistance - A third-party two-wheeler insurance plan gives you a financial cushion against the liabilities which may arise due to an accident or death. With this insurance cover, the third party person will get immediate benefit from the insurance company.
3. No Hassle of Every Year Renewal - The long term third party insurance cover for two-wheelers is the most suitable option for people who want to pay the amount of premium in one go. However, with this insurance plan, it will not be possible for policyholders to port to another insurance provider next year.

How To Renew Third-Party Bike Insurance Policy Online?

You can easily renew your third party bike insurance policy at InsuranceDekho by following the below-mentioned steps:

Step 1: Visit InsuranceDekho website and click on the bike tab.

Step 2: Enter the registration number of your bike and click the ‘’Proceed’’ button. If you do not know your bike’s number, you can also fill in other details like the bike's brand name, model, variant, registration year, registration city, etc.

Step 3: Enter the expiry date of your existing or previous two-wheeler insurance policy and your insurer’s name. Also, share if you have made any claim in your previous policy and click on ‘Continue’.

Step 4: Enter some other required details like name, mobile number and number of days for which you wish to insure your bike. Click on ‘Submit and Get Quotes’.

Step 5: You will get policy quotes from different insurers from which you can compare and choose one as per your requirements. Also, you can include some add-on covers.

Step 6: Click on ‘Buy Now’ to confirm your details and proceed to make the payment. After making the payment, the insurance policy will be issued instantly and you will get it via email.

How to Claim Third Party Insurance for a Bike?

The claim process of third-party insurance for bikes is quite simple. The claim can be made by the insured person as well as by the victim. Here are the claim procedures for both sides:

Claim Procedure for 3rd/Third Party Bike Insurance If You Caused the Damage

1. Click the clear pictures of the damages sustained after the accident.

2. Note down all the required details of the damaged vehicle or vehicles.

3. If you find any eye-witnesses of the accident, note down his or her contact details.

4. Inform your insurance provider about the accident and act according to their guidance.

5. Register a First Information Report (FIR) at a police station of that particular jurisdiction.

6. File a case at the Motor Accident Claims Tribunal Court with the assistance of a lawyer.

7. Attend the court proceedings and share the happening of the incident and submit the required documents and details.

8. Share the court’s order with the insurance provider and get compensation for the expenses of the bodily injuries and property damages.

Claim Procedure for Third-Party Bike Insurance If You Are the Victim

The claim process for third party bike insurance in case you are the victim is as follows:

1. If you are the victim of an accident or a mishap, you should take the insurance details of the third party involved in the incident and intimate their insurer about the incident.

2. On the basis of your information, the two wheeler insurance provider will transfer the case to the motor insurance claim tribunal.

3. You should attend the court proceeding and submit all the relevant documents, FIR copy, and incident-related proofs.

4. You can also bring some eye-witnesses of the accident to corroborate your facts in court.

5. Based on all the facts submitted, the tribunal will decide the compensation amount to be paid.

Documents Required to Claim Third Party Bike Insurance

Claiming Third Party Bike Insurance online involves a process where certain documents are required to validate the claim. Here's a list of documents typically required:

1. Claim Form:

- Duly filled and signed claim form is the primary document required for processing your claim.

2. Driving License:

- A valid driving license of the person riding the bike at the time of the accident is necessary.

3. Registration Certificate (RC):

- The Registration Certificate of the insured bike is needed to verify the details of the bike.

4. Policy Document:

- A copy of the active insurance policy under which the claim is being made.

5. FIR (First Information Report):

- FIR filed at the nearest police station post-accident, especially in the case of severe injury, death, or property damage.

6. Medical Reports (if applicable):

- Medical reports and bills if there is an injury involved.

7. Death Certificate (if applicable):

- In case of a fatal accident, the death certificate of the deceased is required.

8. Legal Heir Certificate (if applicable):

- If the claim is to be made by the legal heirs of the deceased, a legal heir certificate is needed.

9. Other Relevant Documents:

- Any other document as required by the insurance company to process the claim.

10. Third Party Details:

- Details of the third party involved in the accident along with the extent of damage or injury caused.

11. Eyewitness Statements (if any):

- Statements of eyewitnesses can also be helpful in validating the claim.

12. Photographs:

- Photographs of the accident scene, damages, or injuries can be beneficial.

It's important to provide accurate and complete documentation to ensure a smooth claim process. It's advisable to contact your insurance provider immediately after the accident to understand the exact documentation requirements and the procedure to file a Third Party Bike Insurance claim.

Difference Between Comprehensive and Third-Party Two Wheeler Insurance

Here are the basic differences between the 3rd party bike insurance and comprehensive bike insurance.

Advantages of A Third Party Bike Insurance

Here are some advantages of buying a third party bike insurance online in India:

Easy Documentation: This plan involves an easy documentation process that can be completed with just a few formalities. Fewer inspections and checks are required as the motorbike is not insured under this plan. Also, you can purchase this plan according to your convenience and time.

Simple Online Procedure: Almost all insurance companies nowadays offer their services online, wherein you can also purchase the insurance plan online with just a few clicks. With an online purchase process, it becomes much more simpler and convenient to purchase an insurance plan.

No Financial Obligation: Under a third party liability insurance plan for a two-wheeler, the financial liabilities of the insured against any loss or damage caused to any third party property or person is covered

Mandated by Law: Since it is mandatory to get your bike insured at least with a third party liability plan as per Indian Motor Tariff Act, it will ensure that you are obeying legal obligations.

No Stress: Accidents can happen anytime and leave you traumatized, especially if any third party undergoes any loss and you are required to bear the cost for the same. Therefore, with a third-party insurance plan you are relieved from mental stress as all the financial obligations against the third party are handled by the insurance company in place of you.

How to Buy Third-Party Bike Insurance Policy Online?

You can easily buy a cheapest bike insurance third party online in India from InsuranceDekho portal by following the below-mentioned steps:

Step 1: Visit InsuranceDekho website and click on the ‘Bike’ tab.

Step 2: Enter your bike's Registration Number in the “Get Your Quote” column. If you do not know the number of your bike, you can also enter details like brand, model, and a variant of your bike, registration year of your bike, RTO location of your bike, etc.

Step 3: Enter your name and mobile number to get bike insurance policy quotes

Step 4: Choose a bike insurance policy quote as per your needs and budget.

Step 5: Pay for the selected bike insurance policy and get the policy document via email.

How Does the Compensation Works Under the Third Party Bike Insurance Plan?

The compensation offered to a policyholder under a third party bike insurance plan works in the manner stated below:

• In the event of demise of the insured, 100% sum assured can be claimed as compensation by the nominee. However, in case of damage to the body parts, the percentage offered may differ from insurance company to insurance company.
• In case of loss to one eye or one limb, 50% of sum insured is offered as compensation.
• In case there is damage to the property, then up to Rs. 1 Lakh compensation is offered.
• The compensation offered is subject to the owner driver or driver, who is driving the insured vehicle carrying a valid RC or a valid driving license.

Factors that Affect the Third Party Bike Insurance Premium

The premium for Third Party Bike Insurance is influenced by various factors. Here are some key factors that affect the Third Party Bike Insurance premium:

1. Engine Capacity:

The cubic capacity (cc) of your bike's engine plays a significant role in determining the premium. Higher engine capacity usually leads to a higher premium.

2. Geographical Location:

The region where your bike is registered can also impact the premium. Urban areas with higher traffic density may have higher premium rates compared to rural areas.

3. GST (Goods and Service Tax):

GST is applicable on the premium amount, and any change in GST rates can affect the bike insurance third party price.

4. IRDAI Regulations:

The Insurance Regulatory and Development Authority of India (IRDAI) revises the third-party insurance rates annually based on various factors. This regulatory revision can impact the premium.

5. Policy Tenure:

The duration for which you buy the insurance also impacts the premium. Longer tenure policies might have different premium rates.

6. Legal and Compliance Costs:

Legal and compliance costs associated with third-party insurance can also affect the premium amount.

7. Claim History:

Though claim history is more related to Own Damage premium, insurance companies may have different premiums or offerings for customers with different claim histories.

8. Additional Covers:

If you opt for additional coverage along with your third-party insurance, it will increase the total premium amount.

9. Insurance Company:

Different insurance companies may have different rates for third-party insurance even though it's largely regulated by IRDAI.

10. Inflation:

Inflation can also play a part in the increment of premium rates over time.

While the third-party insurance premium is regulated by the IRDAI and primarily depends on the engine capacity of the bike, these other factors can also play a part in determining the exact premium amount. It's advisable to consult with insurance providers or use online premium calculators to get an estimate of the premium you'd need to pay for third-party insurance for your bike.