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.
Click on the button to read about the reasons why you need a third party insurance for two wheelers
Features of third party bike insurance policies
Here are some salient features of third party bike insurance plans –
- 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.
- 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.
- 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.
- 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.
- 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.
Choose from a wide range of third party two-wheeler insurance plans & select the one that suits your requirements.
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 –
- When your bike causes physical injury to any third party
- When your bike causes the death of a third party
- 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.
Advantages of a third party bike insurance
There are several striking features of third-party bike insurance. Let’s have a look at some of these:
- Online Comfort
Almost every leading company have their online market and they allow the customers to purchase the plan online. So, you need not physically visit the branch of a company to get your third-party bike insurance. You can easily purchase one via an online website.
- Quick Paperwork
The third-party bike cover does not provide cover for your bike. Hence, there is less paperwork involved which is also done quickly. You do not have to wait for long and dedicate a good number of hours to completing the formalities. So, the process also saves a lot of time and effort at your end.
- By the Law
The Government of India has made it mandatory for every two-wheeler owner to have third-party bike insurance. So, when you purchase third-party insurance, it means you are also obeying the law and the government guidelines.
- Stay Stress-Free
Third-party insurance for bikes covers the financial obligations that you may have towards a third-party person or property due to an accident. It covers the losses incurred. Hence, you do not need to worry when such a situation arises. Accidents are sometimes inevitable but having effective third-party insurance is what you can decide.
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 –
- Damages suffered by the bike due to any man-made or natural causes
- Damages caused when the bike was being driven without a valid driving license
- Damages caused when the bike was being driven under the influence of alcohol, drugs or any other intoxicating substances
- Damages caused when the bike was being driven outside the boundaries of India
- Any type of consequential losses
- Damages caused when the bike was being used against its usage limitations
Long Term Third Party Cover for Five Years for New Bike Owners
The Government of India has now made it mandatory for new bike or scooter or two-wheeler owners to purchase a third-party bike insurance cover for five years. So, if you are about to purchase your desired two-wheeler, make sure you follow this rule. This long term third party cover is economical in nature as it gives you long term cover against any loss caused to a third-party person or property. However, this two-wheeler insurance policy provides no coverage to the insured vehicle or the owner of the two-wheeler. It is solely intended for the damages caused to a third party.
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
76 cc to 150 cc
151 cc to 350 cc
351 cc and above
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.
If you need a detailed idea about bike insurance premium calculations, you can browse the bike insurance calculator and learn about the premium payable under your bike insurance plan.
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
Only third party liabilities are covered
Coverage is available for third party liability as well as for the damages suffered by the bike itself
This is a mandatory cover
This is an optional cover
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
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
A range of add-on covers is available like roadside assistance, zero depreciation, etc.
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.
Click on this page to read more about the bike insurance renewal process.
How does the compensation work under the Third Party Bike Insurance Plan?
When you are purchasing a two-wheeler, it is quite obvious to purchase a third-party bike cover as mandated by the law. However, bike owners need to understand how the compensation works under the third party bike insurance plan. Let’s understand it:
- In the most unfortunate case, if the insured dies due to an accident, 100% of the sum assured can be claimed by the legal nominee.
- In case an accident causes physical damage or injuries, a percentage of the sum assured is offered. This percentage of sum assured differs from company to company.
- In case the accident causes loss of an eye or a limb, the insured can claim 50% of the sum assured.
- In case the accident causes damage to the third-party property, a sum of up to 1 Lakh Rupees is offered as compensation.
- To avail of any compensation, the driver of the insured vehicle must have a valid RC and a valid Driving License.
Bike insurance calculator
Purchasing a new bike insurance policy means payment of insurance premiums regularly. So, before you finalise your bike and the third-party insurance, it is also essential that you have an insight into the premium you might have to pay in lieu of the insurance cover offered. For third-party bike insurance, you can easily check the payable premium with the help of the bike insurance calculator. By entering a few simple details, you will be able to see results on your screen. Here’s how you can quickly do so:
- Go to the “Bike” section on the top of the page
- Click on “Bike Insurance Calculator”
- Then you will be taken to the calculator page
- Enter your bike details like brand, model. etc.
- You also need to mention the city where you have registered your bike
- Mention the year of purchase
- Finally, click on calculate and the result will be right there on your screen.
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 –
- 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
- You would also have to file a police FIR detailing the instance which happened
- 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
- You would have to inform the insurance company of the liability mentioned by the tribunal
- 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 email@example.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.
Browse through the detailed procedure of filing a claim for bike insurance by clicking on the button below.
How to purchase a third party Bike Insurance Policy online?
Purchasing third party bike insurance has become an easy task these days. You can either go to the nearest branch of your preferred company and get the needful done. On the other side, you can visit the online website of your preferred company and easily purchase the bike insurance policy without any hassle. Here’s how you can purchase third party bike insurance via online method:
- On the website, move the cursor on the “Bike” section on the top bar
- Now click on the “Third-party Bike Insurance”
- A few details of your bike will be asked like bike number, RC number, model, etc.
- You also need to mention the details of the previous insurance plan (if any) and its expiry date.
- Mention the details of previous claims made (if any)
- Now, you need to mention a few personal details like name, mobile number, etc.
- You need to mention the number of days for which you want insurance for your bike.
- Click on “Submit” and quotes will be displayed to you.
- Choose your preferred bike insurance company and proceed with the further processes.
- Make the payment and the policy is now yours
- An executive will get in touch and complete the remaining formalities
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.