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What Is Third-Party Bike Insurance? An Important Guide For You

Before you can drive your two-wheeler in India, you need to have a third-party insurance plan. This policy offers the most basic coverage that is necessary as per law and is mandatory for you to have. Without a 5-year third-party bike insurance for a new bike, you face a fine as well as the possibility of imprisonment. 

Read on to understand the features and costs of third-party insurance. 

How does third-party bike insurance help?

Third-party bike insurance covers your monetary liability for loss caused to a third party by your insured bike. The third parties here refer to:

  • A person
  • A vehicle
  • A property 

Due to it, you do not have to shell out money towards your obligations towards any damage to a third-party up to the policy’s sum assured amount. It covers the following:

  • Injury or death of a person caused by your bike, where the third-party bike insurance covers either medical fees or loss of income due to disability or death caused by an accident 
  • Damage to property of a third party 

This coverage is extended even if you are not driving the bike yourself. It also covers the expenses related to legal processes of the third party due to injury or damage to property. 

Another feature of third-party bike insurance is that it offers compensation in case the owner or the driver of the two-wheeler suffers a permanent total disability (such as loss of limbs or sight) or even death. This is valid in connection to the insured bike, be it during getting on or off the bike or while driving it. 

What benefits are excluded from third-party bike insurance?

A third-party insurance policy doesn’t cover your medical expenses or costs of repairing your bike due to an accident, collision or mishap. It also doesn’t offer you additional coverage via add-ons or riders. These can only be added to a comprehensive bike insurance plan. 

Apart from this, common things that are not covered by third-party bike insurance are:

  • Accidents caused due to speeding 
  • Damage resulting from careless or negligent acts, including driving while drunk 
  • Loss arising out of the bike being driven by an underage driver
  • Damage caused by riots, war, terrorism, etc.
  • Loss caused by unauthorised use of the bike
  • Damage resulting from electrical or mechanical failures 
  • Harm caused to your bike by natural disasters or loss due to theft
  • Regular depreciation of your bike caused by usual wear and tear 

What is the cost of third-party bike insurance?

To make it accessible and affordable for all, the Insurance Regulatory and Development Authority of India (IRDAI) has set premiums for third-party insurance. At a nominal cost, you can reduce expenses that you have to pay due to third-party loss and avoid fines. Third-party insurance premiums are calculated based on your two-wheeler’s engine capacity. 

As of the financial year 2023, these are the costs for third-party bike insurance:

Bike’s engine capacityThird-party bike insurance premium
Less than 75cc₹538
Less than 150cc₹714
Less than 350cc₹1366
More than 350cc₹2,804

How is this different from comprehensive coverage?

While it is compulsory for you to get third-party insurance, comprehensive coverage is not. However, you may want to apply for it so that you can cover your expenses, be it for medical reasons or repairs, arising out of accidents, natural calamities or fire, damage to your bike, theft and more. 

A comprehensive cover also allows you to get add-ons such as zero depreciation cover, roadside assistance, consumables and more. 

Now that you know what third-party insurance is and what it covers, you can get it online for maximum convenience. Buying it online rather than from the showroom allows you to compare plans side by side and choose the most suitable one. With a fast digital process and minimal paperwork, availing third-party bike insurance is easy. 

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