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How Effective is Third-party Insurance Coverage for Your Bike?

By Vikas Chandra Das
25 November 2022, 3:23 PM

Third-party bike insurance is a mandatory bike insurance policy in India that every two-wheeler owner must have. Under this third-party insurance for bikes, you receive financial protection against any damage or injury caused to a third-party person or vehicle caused by an accident in which the insured bike is involved.

The system is in case of an accident involving the third-party; the insurer will provide financial support for the damage caused to a third-party vehicle, property, or personal injury.

Suppose you run into a pedestrian, which leaves you and the other person injured or their vehicle damaged. In this case, your third-party insurance will cover the claims raised by the person. 

The third-party coverage in bike insurance helps reduce the financial burden of the policyholder needed to repair the third-party property and vehicle. Read on to learn whether third-party bike insurance is enough for your bike or not-

Why is Third-party Bike Insurance Required?

Let's understand the reasons that make third-party bike insurance essential for your bike's protection-

  1. Mandatory – The third party bike insurance has been made compulsory by the Motor Vehicles Act. Every bike owner in India has to buy this basic insurance. Non-compliance can result in a fine amounting to INR 2000.
  2. Covers damage caused to a 3rd-party vehicle – The policy compensates the policyholder for all the financial costs that get upon him due to an accident that has caused damage to third-party property or person. The policyholder will be covered financially to meet all the expenses that will go into the repair of a third-party vehicle or property or the medical treatment of a third-party person.
  3. Cover for the loss of life or injury of the third-party vehicle driver- The third-party bike insurance will also bear the financial losses in case of personal damage to the vehicle's driver. Also, in case of the death of the third-party vehicle rider-owner, this particular insurance policy will help cover the insured against financial and legal implications.
  4. Easy to buy – You can get third-party insurance from your preferred insurance provider in just a few clicks by visiting their official website. Documentation is also minimum.
  5. Cost-effective – By paying a nominal value predefined by IRDAI, you get coverage for unforeseen financial expenses you might encounter at any point.

Applying for 3rd party bike insurance is also straightforward. All you need to do is visit the insurance company's official website and click on the 'Apply' button. You can fill in the online form, make the payment online, and have your third-party bike insurance ready. 

Assessing the Effectiveness of Third-party Bike Insurance

We have discussed why third-party insurance is necessary for your bike. However, will the insurance policy be sufficient in all respect and protect the policyholder against all unprecedented happenings on the road? Read on to learn what is excluded from the policy-

  1. Any damage or loss to third-party property or person due to non-collision is not covered in a third-party insurance policy for two-wheelers
  2. Also, the two-wheeler third-party insurance policy does not cover or compensate any loss or damage caused to the bike of the insured.
  3. Any loss or damage of the bike of the insured due to theft or natural/man-made disaster is also not included in the plan.
  4. Also, no coverage will be given in case of an incident while driving without a valid insurance policy or driving licence, RC and PUC certificates.
  5. No coverage is given if accidents occur in areas outside the geographical specifications, as mentioned in the insurance policy.
  6. No claims are approved if it is a case of drunk driving.

In case of a road accident, both parties involved will get hurt to a certain extent, and both parties will have damages to take care of. But if the third-party insurance provider only covers the third-party expenses, then what about the damages and medical expenses of the owner of the insured bike? 

Then, the insured bike owner will again have to spend money from his pocket to get himself treated and meet the repair cost. This is precisely where third-party bike insurance falls short. 

Hence, it is always recommended to go for comprehensive bike insurance. As the name suggests, comprehensive bike insurance will take care of all aspects to ensure complete protection for the insurance holder.

Is a Comprehensive Bike Insurance Policy Better?

Under the comprehensive bike insurance policy, your bike will be given proper cover against loss, theft, or damage and personal accident cover for the owner or rider. And the good part is that it will also take care of your third-party liabilities.

Third-party liability bike insurance is the very basic type of insurance that has been made mandatory by the law of India to make sure that when you ride your bike, you know that you are liable for your actions and in case of damage caused to others, you have to bear the expenses and consequences. 

But, they are not full-proof and will not protect you against your losses. They are limited in their scope. So, always be wise and smart and invest in proper and strong comprehensive bike insurance to care for your worries. 


1. Is having third-party insurance mandatory in India?

Third-party insurance is mandatory for every bike owner in India according to the Motor Vehicles Act, 1988. It safeguards the insured against damages caused during an accident to a third-party vehicle, vehicle owner, or property.

2. What are the benefits of a third-party insurance policy?

The benefits of buying third-party insurance for a bike are-

  1. It is affordable and provides good coverage against third-party damage and loss that would otherwise be a significant concern because of the financial implications involved.
  2. And you can buy them easily online with minimum documentation.

3. What coverage is provided under third-party insurance for a bike?

The third-party bike insurance will provide you with the following coverage-

  1. Death or physical injury to a third-party person
  2. Coverage for damage caused to third-party property up to INR 7.5 lakhs
  3. Cover expenses for repair of a third-party vehicle damaged due to an accident with the insured's bike

4. How to buy a third-party insurance policy for your bike?

You can buy third-party bike insurance both offline and online. But it is better to buy it online from Paytm Insurance so that you can save on your time and energy. The online process is straightforward, quick, and convenient.

5. What are the documents required to claim third-party bike insurance?

The below-listed documents are required to claim third-party bike insurance-

  1. Your driving licence 
  2. The document insurance policy
  3. The claim form, duly filled and signed 
  4. Registration Certificate for the bike
  5. Pollution Under Control Certificate (PUC)
  6. First Investigation Report (FIR) in case of an accident
  7. Original receipt/bills of bike or bills for any other two-wheeler repairs
  8. Satisfaction Voucher (SV) or Discharge Voucher (DV)
  9. A copy of the PAN Card 
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