Long Term Third Party Bike Insurance Advantages and Benefits Everyone Should Know


5 min read

Due to their affordability, extreme comfort, and alluring features, two-wheelers are the prime mode of communication on the hustle-bustle roads of India. Several statistics have also claimed that nearly 18 Crore two-wheelers run on various Indian roads. But unfortunately, only 6 Crore of them (bike and owners) possess 3rd party bike insurance cover. India is also a country which is more prone to road accidents and every year, 1lakh road accident deaths are reported. Most death victims won’t get coverage from insurers as they don’t have any 3rd party bike insurance cover.

According to the Motor Vehicles Act, 1988, third party bike insurance policies are mandatory to run your vehicle on Indian roads. But a bike owner needs to pay the premium every year to renew his/her two wheeler third party insurance policy. This is an arduous job to renew your bike insurance every year though many insurers offer 3rd party two-wheeler insurance online renewal process.

To minimize the gap, the Supreme Court has introduced 5-year third party insurance compulsory for all two-wheelers. So, existing owners should opt for long-term 3rd party bike insurance cover as it offers an array of benefits.

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Benefits of Third Party Bike Insurance on a Long-Term Basis

Third party bike insurance will offer coverage for damage (to the person/property) caused by the insured vehicle. This policy won’t reimburse any damage cost to the insured vehicle. This type of policy is much more affordable as compared to comprehensive bike insurance plans. Many general insurance companies are also offering bike insurance online 3rd party so that bike owners can easily purchase and renew their policies without any hassle.

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5 Advantages and Benefits of long-Term Third Party Bike/Two-wheeler Insurance in India

Apart from this, long-term third party bike insurance will also offer a chunk of benefits. Let’s consider some of them.

1. Safeguard yourself against every-increasing costs of insurance premiums 

To run your vehicle on Indian roads, you need to purchase a third party bike insurance policy plan. Earlier, to renew your policy, you need to pay a hefty amount as a premium every year. But for long-term third party insurance, the premium amount is pre-decided for several years (5 years). This safeguards you from higher premium rates as the premium amount is decided by the IRDA, not your insurance company. So, if you opt for a long-term third party bike insurance plan, then your premium will be the same for the next 5 years.

2. Offers financial and legal supports

A third party bike insurance policy plan supports your financial and legal complications that may arise due to an accident or road emergency. A road accident or death may turmoil your financial condition utterly, but a third party insurance plan takes care of your liabilities if the accident is due to your fault. However one should note that this coverage is for another person/property (third-party) and not the insured bike or the owner.

3. No need to renew your bike insurance every year

Very often, two-wheeler owners forget to renew their bike insurance policies on time. As a result, they may face huge traffic penalties and third party damages. These will certainly trigger financial as well as legal risks. But with a long-term third-party bike insurance cover, bike owners can stay protected from the burden of yearly renewal processes. Now, they can ride their bike without any fear or loss for a prolonged period.

4. Gives peace of mind

When you know that you have insurance in place, especially long-term third-party bike insurance, you can drive your dream bike without any fear of penalties. A road accident or an emergency situation can disturb your financial condition abruptly. But if you have long-term third party bike insurance, then you don’t need to worry about unpredicted events. You can handle those expenses with your long-term bike insurance policies.

5. Hassle-free purchase and renewal process

These days, a bike owner can purchase long-term third party bike insurance online as well as offline.  It is always recommended that before making any investment, a bike owner can compare various available bike insurance plans online and select the most suitable one as per his/her requirements. Calculate the premium of different plans and go for the most economical one. Insurance companies welcome novice buyers with three options and they are a long-term cover, a bundled cover and a standalone third-party policy cover.

These are some of the advantages that you may get while purchasing third party insurance online for two wheelers. You must remember that a third-party insurance policy won’t offer coverage for damages to your vehicle and you. To get 360-degree protection, you need to purchase a comprehensive bike insurance policy.

The engine capacity of two-wheelers Third party premium rates
Up to 75 cc Rs. 482
Between 75-150 cc Rs. 752
Between 150-350 cc Rs. 1193
Over 350 cc Rs. 2323

The Grieving Situation in the Market

Many bike owners often purchase an insurance policy from the manufacturer while purchasing a bike. Very often, these customers are forced by the dealers to purchase insurance policies. At the end of the day, a customer pays more to purchase an insurance plan from a showroom. But you must be aware that there is no mandatory rule to buy it from a dealer/showroom.

The showroom owners are misguiding bike owners by offering them expensive insurance plans. So, customers often get confused with their purchase decisions. With long-term third party insurance plans, a buyer should make an informed purchase before investing a single penny. They should do extensive research and then make a prudent decision. Due to lack of knowledge one might end up  paying a high premium for not so worthy coverage.

Long-term third-party bike insurance plans are advantageous for bike owners. But, you should ask your dealer to give you a separate quotation for both the vehicle and the insurance plan. Now, compare various plans online before making any commitment. Since your premiums will be increased for long-term third party policies, hence your decision should also be based on extensive research. Try to save some amount on your premiums by opting for these multi-year insurance policies.

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Jul 10, 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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