Third-party two-wheeler insurance provides individuals financial coverage against any liability arising from damage to a third party’s property or life. However, third-party bike insurance policy does not cover your own two-wheeler’s damages.

What is Third-Party two-wheeler Insurance?

Third-party two-wheeler insurance is mandatory for all two-wheeler owners as per the Motor Vehicles Act of 1988.

All vehicle owners must have this insurance policy in order to avoid any penalties or hefty fines. This was mandated by the Motor Vehicles Act to make sure that roads are safer, and people feel secure when they take their vehicles out on the roads.

Third-party insurance however does not cover you for financial losses pertaining to damages that your bike incurs. A third-party bike insurance or third-party liability insurance focuses on insuring the policyholder against injury or damages caused to any third party’s property due to the insured vehicle. For example, in case you meet with an accident while you are riding and damage another bike and injure the rider – in such case, third-party insurance will cover the damages that your bike caused to the other rider and their bike but any damage that your own bike faced will not be covered.

Key features and benefits of third-party two-wheeler insurance

• Avoid legal complications
  Since third-party bike insurance is mandated by law, it is essential to purchase and renew to avoid any legal repercussions. In case you don’t have an active third-party insurance for your two-wheeler, you may need to pay hefty traffic penalties.
  

• Coverage for third-party liabilities
  Third-party two-wheeler insurance is designed to cover an individual in case of financial liability due to loss of life or damage to another’s vehicle or property caused by the insured two-wheeler. This can lead to substantial financial obligations and in case there is no insurance, it can result in massive out-of-pocket expenses.

• Online processing
  Bike owners can purchase a third-party bike insurance policy online from the comfort and convenience of their homes with zero documentation. The online process is much faster, more efficient and hassle-free.

• Affordable premiums
  Compared to comprehensive or own-damage insurance, third-party two-wheeler insurance is affordable and comes with lower premiums. So, you can get high-risk coverage by paying a reasonable amount.

• Peace of mind
  A third-party two-wheeler insurance plan keeps an individual financially covered against any unexpected expenses caused to any third party due to a sudden mishap.

Reasons to buy Third-Party Bike Insurance

• Quick and easy purchase:
  You can get your preferred insurance online with minimum documentation by visiting the Bajaj Finance website.
  
  
• Financial assistance and legal coverage:
  Third-party bike insurance provides financial coverage in case of injury/death or property damage of a third party. It also provides cover for any legal and financial hassles arising due to third-party injury or damage.
  
  
• Cost-effective insurance policy:
  Third-Party Bike insurance provides maximum benefit at minimum cost. All third-party insurance premiums are regulated by IRDAI, making the premium rates attractive and affordable.
  
  
• Waives off unwanted penalty:
  The Motor Vehicle Act specifies that every two-wheeler must be insured upon purchase. The minimum requirement is third-party insurance. It saves you from penalty.

Difference between comprehensive and third-party two-wheeler insurance

The major differences between comprehensive and third-party bike insurance are as follows:

The claim process for third-party bike insurance if you are the victim

If you are the third party involved in an accident, here’s how to raise a claim against third-party bike insurance: 

Step 1 - Take photographs of the damage/dents on your bike.

Step 2 - Note down the details of the damaging vehicle.

Step 3 - If possible, check if someone witnessed the accident and note their contact details.

Step 4 - Then, inform your third-party bike insurance provider, so they will be able to guide you regarding specific scenarios.

Step 5 - File a First Information Report (FIR) at a police station under whose jurisdiction the accident took place.

Step 6 - Register a case with the Motor Accident Claims Tribunal Court with the help of a lawyer.

Step 7 - Prove in court that the third party was guilty by providing the required documents and details.

Step 8 - Receive applicable compensation from the damage-causing person’s insurance company through their third-party bike insurance.

The claim process for third-party two-wheeler insurance if you caused the damage

If your two-wheeler caused an accident, the claim process would be as follows:

Step 1: Take pictures of the incident. Note all vehicle details and get an eyewitness.

Step 2: Inform the insurer and register an FIR.

Step 3: Register a case at Motor Accident Claims Tribunal Court and be present at court proceedings.

Step 4: Submit all documents, inform about the court order to your insurer and get compensation accordingly.

What is covered under third-party two-wheeler insurance?

Here’s what is covered in third-party bike insurance policy: 

• Death or injuries to third-party
  Third-party two-wheeler insurance will cover medical expenses or loss of income due to death or disability in case of an accident.

• Third-party property damage
  In case the insured bike causes any damage to third-party property, one can pay for it using the insurance coverage.

• Death of the owner or rider of the insured two-wheeler
  If the owner of the bike or rider dies due to an accident, the third-party bike insurance policy will compensate their dependants for loss of income.

• Permanent total disability of the owner or rider of the insured two-wheeler
  A third-party two-wheeler insurance policy will offer financial coverage in case of permanent total disability to the bike owner or rider.

What is not covered under Third-Party Two-wheeler Insurance?

These are some exclusions of third-party bike insurance policies:

• Losses caused to the insured vehicle due to over speeding

• Damages due to riding a bike under the influence of alcohol

• Accidents due to electrical or mechanical failure

• Damages to third-party caused outside the stated geographical area

• In case the bike is used for any commercial purpose without prior communication to the insurer

• Loss due to riots, terrorist attacks, war, etc.

Compensation offered under third-party bike insurance policy

The compensation amount is predetermined by the Insurance Regulatory and Development Authority of India (IRDAI). As per IRDAI, the liability compensation is up to Rs. 7.5 lakh for damages caused to the third party’s vehicle, property or physical injury.

The percentage of coverage offered for physical injury is based on the nature of injury. However, the percentage of coverage differs from insurer to insurer. Following is the scale of compensation given.

Third-party bike insurance premium rates

As like the compensation amount, IRDAI also sets the premiums of third-party bike insurance policies. The premium is calculated based on the two-wheeler’s engine CC. Below are the defined prices against different engine CCs for old two-wheelers.

Long-term third-party bike insurance policies for new two-wheeler owners

Recently, the IRDAI has mandated insurance companies to offer long-term third-party insurance policies to new vehicle owners. The regulatory body has ordered to offer five-year third-party bike insurance policy to new two-wheeler owners. This rule is effective from June 1, 2022. According to this, following are the revised prices for the long-term third-party insurance policies.

How to buy the third-party two-wheeler insurance policy

You can buy third-party bike insurance policy online or offline. However, purchasing the policy online is most preferred, as it is convenient and hassle-free.

• You can simply visit the official website of the insurance company you prefer to buy the third-party bike insurance from.

• Enter your two-wheeler details

• Select the third-party two-wheeler insurance policy and pay the premium through any of your preferred mode of online payments.

• The insurer will send the copy of the policy documents to your registered email ID.

Ensure you renew your third-party two-wheeler insurance policy on time or you may face penalty.