Third Party Bike Insurance

Third-party bike insurance safeguards against losses to others (third party). It covers injuries, damages, and fatalities incurred by a third party due to the insured bike. In fact, third-party bike insurance is mandatory as per the Motor Vehicles Act of 1988. However, this type of insurance does not provide financial coverage if there is any damage to your bike.

Third-party bike insurance safeguards against losses to others (third party). It covers injuries,...

PARAMETERS	Features

Premium	Starts @ Rs. 538
Buying process	Buy Third-party insurance for two-wheelers with ACKO within a few minutes
Property damages to a third party	Up to Rs. 1 lakh
Personal injury or death of a third party	Unlimited liability
Compulsory personal accident cover (mandatory cover needs to be purchased separately)	Rs. 15 lakhs

How Does Third Party Bike Insurance Work?

A third-party, as mentioned, provides coverage for third-party liabilities. Let us further understand this with an example: Mr. Jain, who has bought a third-party bike insurance policy, meets with a road accident and happens to damage another bike. In this case, Mr. Jain will get financial compensation for third-party damage to the other bike and not to the insured bike. The policy provides coverage for third party damages, including property damage and injury to others.

Key Features of Third Party Bike Insurance

Here are the top features of the two wheeler third party insurance.

Provides Liability Cover

The 3rd party bike insurance provides coverage against financial and legal liabilities arising due to damage to the third-party property or injury or death of a third party caused due to your insured two-wheeler.

Low Premium

Third party bike insurance is more affordable compared to the Comprehensive bike insurance plan. Hence, you get financial and legal coverage against third-party liabilities at a low premium.

Easy Purchase

Third party bike insurance is a basic and simple insurance plan which provides third-party liability coverage. Hence, purchasing the policy is easy as it does not have the complexity of a Comprehensive policy.

Premium Rates of Third Party Bike Insurance

The premium rates of the 3rd Party 2-wheeler Insurance are fixed by the Insurance Regulatory and Development Authority of India (IRDAI). The third-party insurance premium is determined by the engine capacity of the two-wheeler's engine, as mandated by IRDAI. The insurance price (policy premium) is based on the engine capacity of the two-wheeler. The regulator periodically revises the rates annually. Here are the third-party insurance prices for two-wheelers for 2025.

The table below shows the third party insurance premiums and two wheeler insurance premiums, which are fixed and regulated by IRDAI to ensure affordability for all two wheeler owners.

BIKES WITH ENGINE CUBIC CAPACITY (CC)	3RD PARTY BIKE INSURANCE PREMIUM

Less than 75cc	Rs. 538
75cc up to 150cc	Rs. 714
150cc up to 350cc	Rs. 1,366
More than 350cc	Rs. 2,804

Long Term Third Party Bike Insurance Policies for New Two-Wheeler Owners

If you are insuring a new two-wheeler, then it is mandatory to buy a 5-year long-term Third Party Two Wheeler Insurance Policy. New bike owners and vehicle owners are required by law to purchase long-term third party bike insurance policies for their new vehicles. With this new rule, you need not renew the policy every year, and you can also save yourself from any annual price hike on the insurance premium as you pay the premium upfront for five years. The following table provides more details on the 5-year third-party bike insurance premium rates for 2025.

BIKES WITH ENGINE CUBIC CAPACITY (CC)	3RD PARTY BIKE INSURANCE PREMIUM (5-YEAR POLICY)

Less than 75cc	Rs. 2,901
75cc up to 150cc	Rs. 3,851
150cc up to 350cc	Rs. 7,365
More than 350cc	Rs. 15,117

How to Calculate a Third Party Two Wheeler Insurance Premium

Here are some important points regarding calculating Third-party bike Insurance costs.

The two-wheeler Third party Insurance rates are fixed by the IRDAI, and the insurer (ACKO) does not determine them.

The 3rd Party Bike Insurance premium is based on the Cubic Capacity (cc) of the two-wheeler’s engine.

The regulator usually revises the rates periodically based on the inputs from various stakeholders of the insurance industry.

To know the Third party Bike Insurance premium rates for your vehicle, you can use our bike insurance premium calculator.

The tool offers both annual and long-term plan rates for your vehicle.

Key Benefits of Third Party Bike Insurance

Some of the advantages of buying a third-party bike insurance are as follows:

Third-party scooter insurance is also mandatory under Indian law and provides similar liability protection for scooter owners, covering injuries or property damage caused to third parties.

Mandatory As Per Law

Third-party bike insurance is mandatory as per the Motor Vehicles Act. Only third party insurance is legally required for all motor vehicles under the Motor Vehicles Act, and failure to comply can result in penalties. If you are found riding a two-wheeler without a valid two-wheeler insurance policy, then you will be penalised.

Affordable Policy

Third-party bike insurance is more affordable than other types of two-wheeler insurance policies, such as Comprehensive and Standalone Own-damage. The IRDAI determines its premium based on cubic capacity. Third party insurance premiums are set by IRDAI and are designed to be affordable for all two wheeler owners.

Coverage to Third-party Vehicle

This two-wheeler insurance policy provides coverage if the insured bike causes damage to a third party. Specifically, party bike insurance covers damages or injuries caused to third-party vehicles or property.

Financial Coverage if Third-party is Injured

If a third party is injured or meets an unfortunate death due to the insured bike, the financial compensation will be covered under this policy. Additionally, the policy also covers damage to a third party's property, such as vehicles or other belongings, providing compensation for such losses.

Benefits of Buying Third-party Bike Insurance with ACKO

As your insurance provider, ACKO offers dedicated support and guidance throughout your policy period and during the claims process.

When you buy ACKO Third-party bike insurance, you can avail of the following benefits:

Quick Policy Issuance

With ACKO, you can enjoy the ease of buying a two-wheeler insurance policy in just a few minutes. Even the renewal process is quick and hassle-free.

Paperless Process

Whether you raise a third-party bike insurance claim or renew the plan, no paperwork will be required with ACKO bike insurance. You simply need to upload all the relevant documents online, thus saving you both time and effort.

24*7 Access

No matter where you are, with ACKO, you can buy third-party bike insurance anywhere and anytime. Just download the ACKO app or go to its website and enter your bike details to buy a suitable policy. The customer team is also available 24*7 to help you with any queries.

Parametres	Third-party	Comprehensive

Third-party liability	✅	✅
Legal Requirement	✅	❌
Customisable Option	❌	✅
Personal Accident Cover	✅	✅
Add-ons Availability	❌	✅

THIRD-PARTY LIABILITY	SCALE OF COMPENSATION

The demise of the third party	100% of the sum insured amount
Loss of one eye or one limb	50% of the sum insured amount
Loss of two eyes or one limb and one eye	100% of the sum insured amount
Damage to third-party vehicle/property	Up to Rs. 1 lakh compensation

Coverage Under Third Party Bike Insurance

Third party two-wheeler insurance provides financial and legal backup against third-party liabilities arising due to the insured two-wheeler. The following sections provide more details about the coverage under 3rd party bike insurance

What's Covered under Third Party Two Wheeler Insurance

Here are the inclusions under the Third-party Two wheeler Insurance.

Property damage to the third party: If your vehicle damages a third party’s house, vehicle or any property, the third party is covered for the loss of up to Rs.1 lakh under the 3rd Party Bike Insurance.
Personal loss to the third party: If a third party suffers injuries due to an accident caused by your vehicle, their medical cost for the treatment is covered by the 3rd Party Bike Insurance Policy. In case of an unfortunate loss of life, appropriate compensation is covered by the plan.
Personal Accident Cover for owner/driver: If you have not opted for the Personal Accident Cover (PA) already, you can include it while purchasing this 3rd Party 2-wheeler Insurance plan. It insures you against personal injury or death/permanent disabilities with coverage of up to Rs. 15 lakhs.

What's Not Covered under Third Party Two Wheeler Insurance

Here are the exclusions under the Third-party Two wheeler Insurance.

Own damages: Damages to your insured vehicle are not covered under the 2-wheeler Third party insurance.
Riding without valid documents: For instance, if you do not hold a valid Driving Licence (DL), or if you do not hold a Learner Licence (LL) and ride the two-wheeler without a valid DL holder as a pillion, then your claim could be rejected.
Driving under intoxication: 3rd Party Two-wheeler Insurance does not cover damages or losses to the third party if you were found to be riding the insured vehicle under the influence of alcohol or other intoxicating substance.
Accidents outside the state's geographical area: Incidents occurring outside the specified geographical area are not covered under the Third party Insurance Bike Policy.
Usage of vehicle for other purposes: If your private two-wheeler is used for other purposes, such as commercial use, then the 3rd Party Bike Insurance shall not cover such liabilities.
Contractual liabilities: If your two-wheeler has been pledged to another party and there is an accident caused by the insured vehicle, then the 3rd Party Insurance Plan shall not cover third-party damages or losses.

How to Buy/Renew a Two Wheeler Third Party Insurance Policy Online

Here are the steps to buy/renew a third party bike insurance online.

Step 1: Scroll to the top of this page. or download the ACKO app on your smartphone.

Step 2: Enter your two-wheeler registration number and click on ‘Insure now’.

Step 3: Verify the two-wheeler details and select the Third party plan with 1, 2 or 3-year tenure and make the premium payment online to instantly buy or renew the third party bike policy.

Note: Existing ACKO customers can log in to your account and click on the policy card to renew the third party bike insurance online.

How To Claim Third Party Bike Insurance with ACKO

The claims process for third party bike insurance is similar to the procedures followed for other types of motor insurance claims.

Our process to claim Third-party Two-wheeler Insurance is not cumbersome and challenging. Follow the steps below to raise a claim as a policyholder or as a third party.

If You are the Victim

Obtain the vehicle owner’s Third party Two wheeler Insurance Policy details and inform their insurer to register the claim.
File an FIR (First Information Report) at the local police station.
The vehicle owner’s insurer shall transfer the issue to the Motor Accident Claims Tribunal.
The tribunal shall decide the compensation, and the vehicle owner’s insurer shall settle your claim as per the tribunal’s decision.

If You Caused the Damage

Typically, if you caused the damage, the third party must file a claim against your Third party Two wheeler Insurance Policy and register an FIR at the local police station.
Provide your 3rd Party Bike Insurance details with the concerned party.
Inform ACKO about the incident immediately.
Once the concerned party informs ACKO, we shall transfer the case to the Motor Accident Claims Tribunal.
If the tribunal sends a legal notice to you, notify us immediately, and we shall take care of the legal consequences as per the terms and conditions.
Once the tribunal decides the compensation amount, ACKO shall pay the compensation amount to the concerned party.

Things to Remember While Raising Bike Insurance Claims

Proper Evidence

Before raising a claim, ensure you have sold evidence about the incident so the insurer does not reject the claim request.

FIR Reporting

You must file an FIR and inform the insurance company about the third-party accident as soon as it occurs. This will ensure a faster claim process.

Compensation Limit

The Motor Accident Claims Tribunal decides the maximum financial compensation that will be provided to a third party. As of now, the maximum limit is Rs. 7.5 lakhs, so you need to be wary of this.

Third Party Bike Insurance

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