Bike or Two-Wheeler Third-Party Insurance


7 min read

Updated on Sep 12, 2023

A third party bike insurance policy is the basic plan of insurance, which is mandatory as per Indian Motor Tariff Act for two-wheelers as well as four-wheelers. A third-party /two-wheeler insurance allows protection to the insured person against financial liabilities of various kinds for the damages/loss caused to the third-party property/person in case of an accident/mishap caused by the insured.

What is Third Party Insurance for Bikes?

Third-party bike insurance cover is an insurance policy that  takes care of the only third-party liabilities in case of an accident that took place because of the insured person’s faults. Here, the policyholder cannot use the claim to incur damages caused to their own bike. However, the policy is specifically meant to incur the expenses of the damages caused to the third-party person/property/vehicle by the insured person’s bike.

The liabilities of the third-party covered under this plan include bodily injuries of the third party person, death and disability of the third party person, as well as damages caused to property/vehicle of third parties in the event of an accident or mishap. However, you must note that the compensation to be paid to the third party for the damages is decided by court.

Why Do You Need Third Party Bike Insurance?

Every vehicle owner needs a third-party bike insurance because it has been made compulsory In India by the Indian Motor Vehicles Act 1988. Without this insurance, if you ride your bike on the Indian road, you are liable to pay a heavy penalty and might even get imprisoned. Hence, it is necessary to buy a third-party insurance coverage to cover for any third party liability in case you met with an accident.

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Benefits of Third Party Bike Insurance

Below are some of the benefits of third-party insurance:

  1. Help deal with financial obligation – The first benefit of this plan is that it covers the financial liabilities of the policyholder against any kind of loss or damage done to a third party person/property including disability.
  2. Compulsory by Law –  Another thing is that this policy is mandatory by law as the Indian Motor Tariff Act mandates it for every vehicle owner. Thus, it ensures that the insured person abides by the legal obligations.
  3. Easy paperwork – Buying a third party plan do not require much paperwork. So, you can get the policy through an easy process of documentation and can buy it online as per your convenience.
  4. No Mental Stress – With this policy in hand, the insured bike owner will have no mental hassle of incurring financial liabilities against a third party in case of an accident. Hence, you can stay relaxed and away from mental stress.

Inclusions of Third Party Bike Insurance – Things Covered under Two-Wheeler Insurance Policy

Let’s look at the things enclosed under third party two-wheeler insurance as mentioned below:

  • The third-party policy covers any damages of the third party property/person caused due to the fault of the insured person.
  • The compensation package for such third party damage/loss is determined by the court. If the third party person has undergone permanent disability or in case of casualty the compensation offered by the insurer is 100%. On the other hand, for partial disabilities there is 50% compensation offered by the insurer.
  • It also includes a Personal Accident (PA) cover for the bike rider or the insured person of over Rs. 15 Lakh.
  • Further, by paying a certain extra amount, the insured may also buy protection for pillion rider as well under personal accident (PA) policy.

Exclusions of Third Party Bike Insurance – Things Not Covered under Two-Wheeler Insurance Policy

Most of us know what all are covered under third party insurance. However, you may not be aware about what all are not covered under third-party insurance, which is crucial to know.

Here are few common exclusions as follows:

  • A third party policy doesn’t cover against any damages incurred against policyholder’s bike. Rather it just covers for the loss/damage caused to the third party.
  • Also, you cannot make a claim for third party liabilities if you ride your bike under the influence of liquor, drugs etc., or if you do not possess a valid DL.
  • Moreover, if you cause an accident outside the border limit of the policy, even in that case you cannot raise a third-party claim.
  • Further, you must note that claims due to contractual liabilities are also not covered under this plan.
  • You can also not raise a claim for damage caused by situations of war, strike, man-made disasters etc. under third party policy.

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

Recently, the Supreme Court ordered all the general insurance providers to offer only long term third-party insurance to new bike owners across India. Hence, IRDAI has mandated insurers in India to offer 5 year insurance plans for bikes and 3 year plans for four-wheelers. So, any new bike owner will now have to buy third party insurance for 5 years compulsorily.

How Much Does a Third Party Two Wheeler Insurance Cost in India?

IRDAI decides the premium of the third party bike insurance price to be paid by policyholders for a third party bike insurance policy. It depends on the engine power of the policyholder’s bike and IRDAI keeps making changes in the premium price every year.

As per the latest update, the premium for third party insurance bike price applicable from June 1, 2022 is listed below:

  • Rs. 538 for engine capacity up to 75 cc.
  • Rs. 714 for engine capacity between 75 to 150 cc.
  • Rs. 1366 for engine capacity between 15o to 350 cc.
  • Rs. 2804 for 350 cc and above

So, from the above, it is clear that engine capacity up to 75 cc allows cheapest bike insurance third party.

How to Renew Your Third Party Insurance Online for a Two Wheeler?

You can easily renew your online bike insurance Third Party by following the below steps:

  • Visit the portal of your bike insurance company and go to the renewal page.
  • Submit the registration number of your bike along with other required information.
  • Now select the third-party renewal plan that you want to purchase.
  • Check the premium that you must pay for the policy.
  • Make the payment via any online payment mode.
  • Your renewal is done once the payment has been made.
  • You will receive the renewal documents via email on your registered email ID.

How to Buy Third Party Bike Insurance – Online and Offline?

You can buy the cheapest third party bike insurance either online or offline. However, buying online is viable as it is an easy, hassle-free and economical way. Below are the steps that you can follow to purchase a third party bike insurance online:

  • Go to the website of the insurer. Alternatively, you can visit
  • Go to the ‘Get Your Quote’ section in the portal and submit your bike registration number. Or else, you can submit the model number of the bike, make of the bike or even the registration year of the bike.
  • Now add your own details like, mobile number, name etc. and submit.
  • Choose the policy (insurer) you want to buy.
  • Now make the payment and you will receive the policy documents on your email ID for your third party vehicle insurance.

How to Claim Two Wheeler Insurance Third Party?

Claim Procedure for Third Party Bike Insurance is very simple as mentioned below:

  • In case of an accident, click pictures of the damages (clear) received by the third party.
  • Also, note the details of the damages and also of eye witnesses (if any).
  • Inform your insurer as soon as possible about the mishap and say as directed
  • Also, don’t forget to register a FIR at the nearest police station.
  • You might also have to file a case at the Tribunal Court of Motor Accident Claims.
  • Henceforth, you have to attend the court proceedings till the time it goes on.
  • Share the details with your insurer.
  • Once the court passes the order, share it with the insurer and get compensated for the third party expenses.

Now you know almost everything about third party bike insurance. However, you may question, is third party insurance enough for bikes? Though third party insurance covers you against the worries of third party damages, it doesn’t cover you against your own bike damages. So, it is better to consider a Standalone Own Damage policy along with an insurance bike third party.

FAQs on Bike or Two-Wheeler Third-Party Insurance

What is third party insurance?

Third-party bike insurance is the mandatory insurance cover that a bike owner must have and which takes care of only the third-party liabilities. Here, the policyholder cannot use the claim to incur damages caused to their own bike. However, the policy is specifically meant to incur the expenses of the damages caused to the third-party person/property/vehicle by the insured person's bike.

Which bike insurance company gives 3rd party cover?

There are 25 General Insurance companies in India and all of them offer third party bike insurance coverage. You can choose any lowest bike insurance third party policy offered by any of these insurers.

Can I convert 3rd party insurance for my bike into zero depreciation insurance?

No, you cannot convert a third party bike insurance policy into a zero depreciation insurance. Firstly, zero depreciation is an add-on cover and not a proper insurance plan. And third-party insurance does not allow the insured to avail any add-on with the policy. So, you can select a zero depreciation add-on cover with either a comprehensive bike insurance plan or a standalone own-damage bike insurance plan.

What is the procedure for getting 3rd party insurance for 10-year-old bikes?

If you want to buy a third party insurance plan for your 10 year old bike you can do so by following the process mentioned below:
Go to the portal of the insurer to whom you want to buy the policy or an insurance broker like PayBima.
Submit the Registration Number of your bike.
Submit other bike details like manufacturer and model of bike, type of fuel used, bike variant, year of registration, city of registration or RTO location etc.
Now, submit your personal details like name, phone number etc., and click on "Get Quotes’ button.
You can see various available premium quotes of various insurance companies. Here, you can make a comparison of the quotes and choose the one suiting your requirements best.
You can also opt for an add-on cover at this stage.
Once you have completed the formalities and selected the plan, you can proceed with the payment using online banking facilities.
Within seconds the policy will be issued and the documents will be sent at your registered email ID.

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Jun 27, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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