A bike proves to be an effective and convenient mode of transport as you can navigate the congested streets easily. It is also affordable providing to be suitable for every average middle-class individual. This is the reason why bikes are very popular among youth and adults alike. If you also own a bike you should know that there is an insurance cover which is required to be added to your bike. Just like a valid driving license is necessary to drive your bike, a valid third party bike insurance policy is also necessary to fulfil the mandate prescribed by the Motor Vehicles Act, 1988.

What is third party bike insurance?

A third party bike insurance policy is a policy which covers the third party legal liability that incurs if your bike harms any third party. A third party is considered to be an individual other than the insurance company and the bike owner. If due to your bike, any third party is injured or killed or any third party property is damaged, you face financial liability for the loss caused. This financial liability is covered by 3rd party two-wheeler insurance policy.

Features of third party bike insurance policies

Here are some salient features of third party bike insurance plans –

  1. Legally mandatory

    As stated earlier a third party cover is mandated by the Motor Vehicles Act, 1988. The policy is, therefore, compulsory for your bike if you want to drive your bike in India.

  2. Low premiums

    The third-party bike insurance price is very low since it covers only third party liabilities. The premiums are fixed by the Insurance Regulatory and Development Authority of India (IRDAI). They depend on the engine capacity of the bike and the term for which the policy has been issued.

  3. Scope of coverage

    A third party bike insurance policy covers only financial liabilities that you suffer because of third party injuries or damages. The damages suffered by your bike itself are not covered under the plan.

  4. Online purchases

    You can buy third party bike insurance online. The process is simple and it takes only a few minutes. You can buy the policy directly from an insurance company’s website or from Turtlemint which allows you to compare the available policies of different companies and then buy.

  5. Coverage tenure

    Third-party policies come for one a term of one year. However, if you have bought your bike on or after 1st September 2018, you would have to buy a cover for a continuous period of 5 years. This has been mandated by IRDAI in recent times. For bike-owners who had purchased their bikes before 1st September 2018, one-year third party bike insurance plans are valid.

  6. What is covered under third party bike insurance policies?

    Two-wheeler insurance third party plans cover the financial liability that you face in the following situations –

    1. When your bike causes physical injury to any third party
    2. When your bike causes the death of a third party
    3. When your bike causes damage to a property belonging to any third party

    Coverage for physical injuries and death is limitless. There is no specified coverage amount. The liability that you incur, without any maximum limit, would be settled by the insurance company. However, in the case of property damage, the coverage is limited to INR 7.5 lakhs. Liabilities suffered up to INR 7.5 lakhs would be paid by your third party bike insurance policy. Any exceeding liability would have to be borne by you.

    Besides the legal liability coverage, a personal accident cover is also mandatory and is added to the third party bike insurance policy. This coverage is granted for INR 15 lakhs and it covers accidental death or disablement faced by the owner or driver of the bike. In case of accidental death or permanent total disablement, INR 15 lakhs is paid as claim. However, if the owner or driver suffers a permanent partial disablement, 25% to 75% of the sum insured would be paid as claim depending on the severity of the disability suffered.

    What is not covered under third party bike insurance plans?

    Here are important exclusions under third party bike insurance policies for which no claims are paid –

    1. Damages suffered by the bike due to any man-made or natural causes
    2. Damages caused when the bike was being driven without a valid driving license
    3. Damages caused when the bike was being driven under the influence of alcohol, drugs or any other intoxicating substances
    4. Damages caused when the bike was being driven outside the boundaries of India
    5. Any type of consequential losses
    6. Damages caused when the bike was being used against its usage limitations

    Two-wheeler third party insurance premium calculator

    As mentioned earlier, the premiums of third party bike insurance plans are determined and fixed by the IRDAI. IRDAI is the governing body of the insurance segment which not only fixes the third party premiums for bikes but for cars too. Moreover, the premium rates are not fixed. They are subject to changes due to periodic reviews done by the IRDAI. The current third party bike insurance premium rates, with effect from June 2019, are as follows –

    The engine capacity of the bike

    The third-party premium for a one-year policy

    The third-party premium for a 5-year long term policy

    Up to 75 cc

    INR 482

    INR 1045

    76 cc to 150 cc

    INR 752

    INR 3285

    151 cc to 350 cc

    INR 1193

    INR 5453

    351 cc and above

    INR 2323

    INR 13,034

    The personal accident cover of INR 15 lakhs comes at a modest premium of INR 750 which is added to the third party premium mentioned above to arrive at the aggregate premium. A GST of 18% is charged on the aggregate premium to arrive at the final premium payable for the policy.

    Difference between third party and comprehensive bike insurance policies

    Though a third party bike insurance policy is mandatory, there is another type of coverage called the comprehensive bike insurance policy. Here are the differences between these two types of coverages –

    Points of difference

    Third-party bike insurance

    Comprehensive bike insurance

    Coverage scope

    Only third party liabilities are covered

    Coverage is available for third party liability as well as for the damages suffered by the bike itself

    Requirement

    This is a mandatory cover

    This is an optional cover

    Premiums

    Premiums are low and are fixed by IRDAI. The premiums of all third party bike insurance plans are the same across companies

    Premiums are high because of the wider scope of coverage. Premiums for third party liabilities are fixed by IRDAI but the premiums for the own damage part is fixed by the insurance company itself. Premiums, therefore, vary across different plans offered by different companies

    Coverage duration

    One year for older bikes and five years for new bikes bought on or after 1st September 2018

    Can be taken for one year or for five years along with the mandatory long term third party cover. The choice of the coverage tenure is yours

    Add-on covers

    Not available

    A range of add-on covers is available like roadside assistance, zero depreciation, etc.

    Premium discounts

    Not available

    A range of premium discounts are available under the policy

    Renewal of third party bike insurance plans

    Since a third party bike insurance policy is legally mandatory, you are required to renew the policy regularly when the coverage duration comes to an end. If the policy is not renewed within the coverage duration, it would lapse and the coverage would cease. You can renew a lapsed policy too but such a renewal would be allowed only after the bike is inspected by the insurance company. If the policy is not renewed, you could face severe legal consequences in case of any third party liability and would have to bear the liability yourself. So, timely renewals are necessary.

    To renew the policy, you can visit the website of the company from which you bought the policy, pay the renewal premium and the policy would be instantly renewed online. Alternatively, if you have bought the policy from Turtelmint, you can log into your account and renew the policy by paying the renewal premium. The policy would be easily renewed.

    Claim process of third party bike insurance policies

    If any of the covered instances occur and you face legal liability, here’s how the claim process would be –

    1. Inform the insurance company immediately about the claim that you have suffered. The company would have a claim helpline which should be called to register your claim
    2. You would also have to file a police FIR detailing the instance which happened
    3. Your claim would be taken to the motor accidents tribunal which adjudicates third party claims. The tribunal would assess the damages and determine the legal liability that you face
    4. You would have to inform the insurance company of the liability mentioned by the tribunal
    5. The insurance company would then pay the claim directly to the third party and your claim would be settled

    If you are a customer of Turtlemint and you bought your third party bike insurance policy from the company, you can take Turtlemint’s help in claim settlement. Just call Turtlemint at 1800 266 0101 or mail your claim to claims@turtlemint.com to inform the company’s claim team. The team would then coordinate your claim with the insurance company and facilitate easy and quick settlement of your bike insurance claim.

    Documents required for third party bike insurance claims

    To make your third party claim, the following documents would be required –

    • The claim form, filled and signed
    • Police FIR
    • Copy of your driver’s license
    • Copy the RC book of your bike
    • Policy copy
    • Any other document required by the insurance company

    Your claim would be processed only if the documents are duly submitted.

    A third party bike insurance policy is a mandatory cover for your bike and if you would like to avoid heavy penalties, buy the coverage and secure yourself against third party financial liabilities.


FAQ’s

To buy the policy you need to submit a valid ID proof, address proof, RC book’s copy of the bike, and a copy of your driving license.


No, no claim bonus is allowed only under comprehensive bike insurance plans. If you have opted for third party liability only coverage, no claim bonus would not be allowed.


Yes, you can. Many companies offer a long term comprehensive cover for older bikes bought before 1st September 2018. However, the only long term third party cover is not usually available. You would have to buy a long term comprehensive policy.

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