Third Party Bike/Two Wheeler Insurance

In India, on every road and lane, you will always see people on two-wheelers. Not only are they economically affordable but they are also very quick and convenient. But when you buy a bike for yourself, it is not just a privilege that you enjoy, it also comes with a few responsibilities. One of them is buying bike insurance.

Bike insurance companies offer two kinds of insurance plans:

1. Third-Party Insurance 
   Covers the damages that your bike causes to a third-party person or property
2. Comprehensive Insurance
   Along with own-damages this policy also covers the damages that your bike causes to a third-party person or property

In this article, we are going to study all about Third-Party Bike Insurance.

What is Third Party Bike Insurance?

Under the Motor Vehicle Act, 1988 having third-party insurance is mandated by law. This policy would offer coverage and pay for the financial liabilities that arise due to an accident in which your bike causes injury or death of a third person or damage to a third-party. 

When we talk about third-party insurance, there are three parties involved in the process:

1. You the bike owner and policyholder
2. The bike insurance company
3. Any other individual or property, apart from above 2

Why Third Party Bike Insurance is Important?

• Required by Law
  As discussed above, every bike has to have third-party insurance.
• Legal Cover
  Your third-party insurance will not only keep you safe from legal trouble, it would also offer legal cover that will take care of the legal aspect of the accident.
• Easy to Process
  Third-party policies can be easily purchased and then renewed. Doing this online makes it easier and quicker.
• Peace of Mind
  Without being overly worried about how the damages of the third-party will be compensated, you can focus your attention on coping up with the accident.

Features of Third Party Insurance Policy

Let us take a look at the salient features of a Third-Party Bike Insurance Policy 

• If your bike faces any kind of damage, the insurance company will not be covering your damages, only third-party damages will be covered
• All general insurance companies that offer bike insurance, offer third-party insurance, however, the premiums are specified by the Insurance Regulatory and Development Authority of India (IRDAI)
• The premiums are based on the engine capacity of your bike
• The premium charges are not fixed, they can be changed as per the directions of IRDAI
• Third-party plans are the cheapest kind of bike insurance
• Death or physical injury claim is settled as per the Claims Tribunal
• The maximum liability that the insurance company will take is INR 7.5 lakhs

Benefits of Third Party Insurance Policy

Though third-party bike insurance is the most basic kind of coverage, it has a lot of benefits:

• Legal Requirement
  As mentioned earlier, third-party insurance is mandated by the law. Not being insured can get you in legal trouble along with a penalty
• Easy Renewals
  All insurance companies offer processing of renewals, claims etc online making the entire process very easy and convenient
• 24X7 Assistance
  Insurance companies also offer easy access to customer care making purchase, claims and renewal easy and quick
• Lowest Price
  Third-Party insurance is offered by all insurance companies at an extremely affordable rate. The  prices are regulated by IRDAI
• Continuous Cover
  Since September 1, 2018 bikes will have a continuous cover for 5 years. However, if the bike was bought before this date, third-party insurance plans are available on a yearly basis.

Who Can Opt for Third Party Bike Insurance? 

Anyone who has purchased a new or a second-hand bike can opt for third-party insurance if he wants the cheapest plan available. Remember it is a minimum requirement you need to fulfil when you take out your bike on the road.

What is Covered in Third Party Bike Insurance?

Third-Party Insurance includes the following:

• If an individual dies due to an accident with your car, you would face liability for the loss of his life. The loss will be borne by the insurance company
• If a person gets hurt or injured, the liability of the injury will also be taken care of by the insurance company
• If a property suffers damage due to an accident with your car, the loss becomes your liability. Your third-party insurance plan will pay for these losses too

There is no set coverage for injury and death, it is limitless and is settled by the company. In case there is damage to property the coverage can go up to a maximum of INR 7.5 lakhs. If there is still any amount to be paid you, the policyholder will have to bear it. 

Besides this, a personal accident cover of INR 15 lakhs is also a feature of third-party insurance. It covers death or disablement of the rider/owner of the two-wheeler/bike. In case the individual suffers a partial or permanent disability, 25% to 75% of the sum insured selected will be paid on the basis of the severity of the injury/disability.

What is not Covered in Third Party Bike Insurance?

When buying any insurance policy, make sure that you go through all the exclusions that come with the policy. Exclusions are the features that are not covered in your bike insurance. Remember that in the following cases you won't be able to make a claim. If the bike is damaged: 

1. Due to natural or man-made disasters
2. In case the bike was being driven by a rider who doesn't have a valid driver’s licence
3. When driven under any kind of intoxication
4. When driven outside India
5. After an accident, that is any consequential losses
6. Contractual liabilities are not covered
7. During any illegal act
8. During nuclear perils/war

Third Party Bike Insurance Premium Calculator

Like discussed above, the rate of premium of third-party bike insurance is specified by the IRDAI.  Though they are subject to change, all insurance companies provide third-party insurance at the same rates.

To calculate the premium, you need to visit an insurance aggregator website or you can directly visit the insurance company that you wish to buy insurance from. After that follow the steps given below:

• Go to ‘Bike Insurance’
• Select the ‘Third-Party’ Insurance plan
• Enter your personal details like name, mobile number and email address
• Now, enter your bike’s details like model, make, variant, registration details etc
• The Insured Declared Value of your bike will be displayed
• Go to ‘Get Quote’ to see the premium
• If you want to go ahead, pay the premium online and you will soon receive a soft copy of your policy

At a modest cost of INR 750, you would be able to get the personal accident cover benefit. You would also be charged with 18% GST.

Factors Affecting Premium of Third Party Bike Insurance

The premium rate of your Third-Party Bike Insurance would be calculated based on the cubic capacity of your bike.

How to Renew Lapsed/Expired Third Party Bike Insurance Online?

If you are caught without valid third-party insurance, you will not only have to pay a penalty, you can also get into legal trouble. Also, imagine the financial burden that will fall upon you if you are involved in an accident.

It is therefore highly recommended that you renew your policy before it reaches its expiry date. However, due to some reasons  if you were not able to renew your policy, you can follow the steps given below and activate your policy:

1. Get in touch with the bike insurance company, through its customer care, and raise a request for renewal of a Lapsed/Expired policy.
2. Some companies offer a renewal of a lapsed policy without any paperwork or inspection, however, it depends on company to company.
3. If no paperwork or inspection is required, you can simply visit the website and renew your third-party bike insurance by paying the premium.
4. In case, your bike insurance company sends a surveyor for inspection, you would be able to renew your policy online when you get an authorisation.

A list of required documents is given below, keeping them handy will help you in a quicker and easier renewal

• Policy papers
• Valid ID Proof
• Address Proof
• RC Booklet
• Driver’s Licence

Third Party Bike Insurance Insurance Claim Process

The process of making a claim differs from situation to situation, in case if:

You are the Victim:

• You must contact the police to inform them about the accident
• Get in touch with your bike insurance company, they might be able to guide you too
• Try to click pictures of the damage done to your bike
• Remember to note down the details of the vehicle that cause damage to your bike
• See if you can gather any witnesses
• File a case with the MACT
• On the hearing date, you would be required to prove how your bike was damaged by the accused
• If the court decides in your favour, the insurance company of the other person will compensate you for your losses

You Caused the Damage:
When a claim is made under a third-party insurance policy, it is taken care of by the MACT, Motor Accident Claims Tribunal. To raise a claim request, you need to:

1. File an FIR
2. Inform the bike insurance company about the accident
3. Try to click pictures of the injury to the other person or damage to his vehicle/ property
4. See if you can gather any witnesses
5. Submit all necessary documents with your insurance company
6. The matter would have to be addressed to the MACT and a ruling for the claim amount would be issued by the board
7. In accordance with the ruling, your insurance company will then compensate the third-party directly
8. In case a higher compensation is to be paid, you would have to do that  from your own pocket

The following documents will be required when making a claim:

• Police FIR
• RC booklet
• Driver’s License
• Post-Mortem Report and Punchnama in case there has been the death of the third-party person
• Police Report of the accident
• Hospital bill in case of injury to a third-party person

How to Compare Third Party Bike Insurance Policy Online?

As mentioned earlier, third-party insurance will cost you the same, no matter which insurance company you buy it from. However, when buying such a plan for your bike, it is recommended that you buy it from a reputed company and also try to select an insurer on the basis of its claim procedure. You may want to do so by taking into consideration the reviews written by other customers.

How to Buy Third Party Bike Insurance?

Buying third-party insurance is easy. You can either do it offline or online at the time you purchase your bike. 

• Offline

You can get in touch with the bike insurance company, and they would send their agent at the bike showroom so that when you purchase the bike, you can instantly get the insurance done too.

• Online

Buying bike insurance online is more beneficial as you can do it at your convenience. You simply need to go to the official website of the insurance company or go to an insurance aggregator website and follow the given steps:

• Go to Bike Insurance
• Enter your personal details - name, mobile number, email address
• Enter the bike details-  registration number, model, make
• Select ‘Third-party’ insurance
• The premium amount will be displayed
• Recheck all the entered details and Pay the Premium
• You will soon receive the soft copy of your Bike Insurance

Best Third Party Bike Insurance Companies in India

All general insurance companies offer third-party bike insurance, and at the same cost, as the premiums are fixed by IRDAI. Thus you must use your discretion when selecting a particular company. You may want to choose between a private or a government company. Given below are a few popular companies: 

1. Government based Bike insurance companies 
   • National Insurance Company Limited
   • New India Assurance Company
   • Oriental Insurance Company
2. Private Bike insurance companies
   • HDFC Ergo General Insurance Company
   • TATA AIG  General Insurance Company
   • ICICI Lombard  General Insurance Company
   • Bajaj Allianz Insurance Company
   • IFFCO Tokyo Insurance Company