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Third-Party Bike/Two-wheeler Insurance

Home / Two-wheeler Insurance / Third Party Bike Insurance Policy - Buy/Renew Online

What is Third-party Bike Insurance?

Third Party Bike Insurance is an insurance policy that provides financial cover for injuries caused to a third person, or damages to their vehicle or property arising from an accident involving the insured two-wheeler. It also provides you financial and legal coverage in case of the death of a third party in an accident caused by the insured two-wheeler.

As per The Motor Vehicles Act, 1988, it is legally binding for all two-wheeler owners to have at least 3rd party bike insurance. Failure to do so may lead to traffic penalties. Buying an online Third-party Two-wheeler Insurance Policy is the quickest and easiest way to protect yourself against any third-party liabilities. 

Scroll up to the top of this page and provide a few details about your bike to get Third-party Insurance for your two-wheeler.

Key benefits of Third-party Two-wheeler Insurance

Here are some of the key advantages of this type of bike insurance.

Key parameters Benefits
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. 7.5 lakhs
Personal injury or death of a third party Unlimited liability
Personal Accident (PA) cover (needs to be purchased separately) Up to Rs. 15 lakhs

Why do you need Third-party Two-wheeler Insurance?

All two-wheeler owners must insure their vehicle with 3rd Party Bike Insurance as per The Motor Vehicles Act, 1988. In case of failure to insure a two-wheeler, the vehicle owner could be liable for a penalty of Rs. 2,000 for the first offence, and Rs. 4,000 and/or imprisonment of up to 3 months for a subsequent offence.

For example, if you damage a third-party vehicle, and the repair cost estimate is Rs. 50,000, the Third party Insurance for your two-wheeler shall cover the repair cost, as per the policy’s terms. Without such a cover, you will have to manage the expenses on your own.

Inclusions

Exclusions

What’s covered in 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. 7.5 lakhs  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 in Third-party Bike 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.

❌ Driving 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 does 3rd Party Two-wheeler Insurance work?

Here is how the Third-party Two wheeler Insurance Policy works and how it impacts different parties involved in the policy.

Here are the different parties involved in this type of two-wheeler insurance.

Party Description
First party The owner-driver of the insured two-wheeler
Second party The insurer, in this case, ACKO
Third party A person or property that is not the 1st or 2nd party

A two-wheeler 3rd Party Insurance Policy offers financial and legal protection to the 1st party against damages or losses to the third party or their property. 

Different scenarios for Third-party bike insurance coverage

Let us look at different scenarios to understand the coverages involved in Third party Two-wheeler Insurance. Do keep in mind that these are for explanation purposes and coverages shall depend upon the actual scenarios and applicable terms and conditions.

Scenario Coverage
Injuries to or loss of life of a third party caused by your insured bike The Third-party Two-wheeler Insurance Policy for a two-wheeler covers the cost of all medical and hospitalisation expenses incurred by the third party. It also covers the disability claims resulting from the injury or even the third party’s loss of life.
Damages caused to a third-party vehicle/property The 3rd Party Insurance for your bike covers the financial implications of these damages.
Legal consequences The Third-party Two-wheeler Insurance Policy covers the financial burden of legal liabilities.

Benefits of buying Third-party Bike Insurance online

Buying bike insurance is now simple and easy with the introduction of safe and speedy online transactions. Insurance technology companies such as ACKO enable you to buy or renew 3rd Party Two-wheeler Insurance swiftly through digital platforms such as their website or mobile app. Here are some of the key advantages of buying Third-party Two wheeler Insurance online.

1. Paperless purchase

Third-party 2-wheeler Insurance’s online purchase process is easy and does not require documentation since you can perform those actions online. Digital insurers such as ACKO enable you to perform such transactions through their website or mobile app without paperwork. All you need to do is to use these digital platforms to insure your two-wheeler with Third party Bike Insurance online within a few clicks.

2. Easy renewal process

The online Third party Bike Insurance renewal process is less cumbersome compared to the offline way. You can simply access your ACKO account through our website or mobile app and select the policy to renew it instantly. It is that simple! You also have the option to opt for Comprehensive Bike Insurance for wide-ranging benefits.

3. Flexibility to edit the policy document

If you have made an error with your personal details, you can call the ACKO customer support team or access your account through our website or mobile to request the amendment to the policy document. We shall make the required changes as per the terms and conditions of the policy and send you the amended policy document.

4. Avoid unwanted penalties

As per The Motor Vehicles Act, 1988, you must insure your vehicle with at least a 3rd Party Bike Insurance policy. Driving a two-wheeler without insurance on Indian roads is a punishable offence, and you could be penalised with a fine of Rs. 2,000 for the first offence, and Rs. 4,000 and/or imprisonment of up to 3 months for the subsequent offence. However, with the option of online Third party Two wheeler Insurance renewal, you can insure your bike within a few minutes.

How to buy/renew a two-wheeler Third-party Insurance Policy online?

Here are the steps to buy/renew a bike 3rd party insurance online.

New to ACKO ACKO customers
Step 1: Scroll to the top of this page. Step 1: Scroll to the top of this page to access your ACKO account.
Step 2: Enter your two-wheeler registration number and click on ‘Insure now’. Step 2: Select the policy against your two-wheeler.
Step 3: Select your bike model and click on ‘Search’ to view the prices. Step 3: Select the plan (1 or 2 years) and pay the premium to insure your bike.
Select ‘Third-party Plan’ (buy Personal Accident Cover if you don’t already have it), pay the premium and receive the policy document via email. You also have the option to download the policy document. We shall email your Third-party Two-wheeler Insurance Policy instantly. You can also download the policy from your ACKO account.

ACKO claim procedure for Third-party Bike Insurance

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 If you caused the damage
If a two-wheeler causes damage to your vehicle/property, do the following. 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.
Obtain the vehicle owner’s Third party Two wheeler Insurance Policy details and inform their insurer to register the claim. Provide your 3rd Party Bike Insurance details with the concerned party.
File an FIR (First Information Report) at the local police station. Inform ACKO about the incident immediately.
The vehicle owner’s insurer shall transfer the issue to the Motor Accident Claims Tribunal. Once the concerned party informs ACKO, we shall transfer the case 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 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.

How does compensation work under the Third-party Bike Insurance Policy?

Here are the compensation details under the Third party Two wheeler Insurance Policy.

Third-party liability Scale of compensation
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. 7.5 lakh compensation

Third-party Bike Insurance premium rates

The premium rates of the 3rd Party 2-wheeler Insurance are fixed by the Insurance Regulatory and Development Authority of India (IRDAI). This 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 applicable with effect from June 2019.

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

How to calculate a Third-party Bike Insurance premium?

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

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.

Factors that affect the Third-party Bike Insurance premium

The Comprehensive Two-wheeler Insurance Policy premium is calculated based on several factors. It includes the vehicle’s year of manufacture, location, the Insured Declared Value (IDV), and the vehicle model. However, the Third-party Two-wheeler Insurance premium is calculated based on the vehicle’s engine cubic capacity (cc).

While the premium rate of the Comprehensive Bike Insurance Policy is calculated by the insurer the regulator (IRDAI) fixes the price of Third party Bike Insurance Policy based on the engine’s cubic capacity.

Reasons to opt for long-term Third-party Two-wheeler Insurance

You should consider buying a long-term Third-party Bike Insurance for the following reasons.

1. You shield yourself from increasing premiums

IRDAI determines the price of a Third-party Policy and not the bike insurance company. So, the premium is standard across bike insurance companies and there is no scope for discounts. However, if you buy long-term Third-party Bike Insurance, it is a lot more cost-effective than buying Third-party Bike Insurance each year.

Also, IRDAI revises the premium of Third-party Bike Insurance periodically. Hence, the policy premium may increase on a year-on-year basis. So, if you opt for a long-term Third-party Policy, the premium for each of the years covered will remain the same and will not be subject to the revised increased rate.

2. No worries about insurance renewal

Data shows that most bike owners fail to renew the insurance policy in time. This exposes them to high financial liabilities related to traffic fines and third-party losses. When you buy a long-term bike insurance policy, you are saved from the hassle of frequently renewing the bike insurance policy. So, you can ride your bike without worrying about incurring fines or losses.

Which policy is better, Comprehensive or Third-party Bike Insurance?

If you are wondering which type of bike insurance is best suited for your vehicle, it is ideal to compare the Comprehensive Plan and the Third-party Plan to find an answer. Make sure to compare based on the coverage and the cost of the plan. Check more about  Comprehensive vs third party bike insurance to make the right choice.

Third party bike insurance benefits

Here are the advantages of Third-party Two-wheeler Insurance.

Financial assistance

When you insure your two-wheeler with Third party Bike Insurance, you are protected against third-party liabilities. You don’t have to pay for the entire damages from your pocket.

In case of legal consequences arising from third-party losses, the insurer (ACKO) shall help you out with it.

Adherence to the law

Since all vehicle owners must insure their vehicle at least with the 2-wheeler Third-party insurance as per The Motor Vehicles Act, 1988, failure to insure the vehicle shall invite penalties. By insuring your scooter or bike with this plan, you adhere to the law.

Is Third-party Insurance enough for two-wheelers?

While 3rd party 2-wheeler Insurance is the most basic and mandatory insurance plan for your vehicle, it falls short of providing financial protection if your two-wheeler is damaged in case of any mishap or natural disaster. It primarily covers death or damages or accident-related expenses for a third party.

You have the option to purchase the Comprehensive Two-wheeler Insurance Policy for wide-ranging benefits since it provides coverage for both third-party liabilities and damages to your vehicle. It also offers the possibility of including add-ons to enhance the Comprehensive Bike Insurance Policy coverage.

Limitations of Third party bike insurance

Even though the Third-party insurance for your two-wheeler takes care of the legal requirements, it has its limitations. Here are the limitations of Third-party Two-wheeler Insurance.

No coverage for damages

In case of accidents, the Third-party two-wheeler Insurance does not cover any damage or losses to your bike. Only Comprehensive Insurance covers such damages.

No coverage for natural disasters

In case of flooding, earthquakes, landslides, etc., the 3rd Party Insurance plan for your two-wheeler does not cover any damages to your vehicle. Again, it is the Comprehensive Insurance Plan that covers such losses.

No coverage for vehicle theft

If your bike or scooter gets stolen, the 2-wheeler Third-party insurance does not cover such losses. You should consider opting for the Comprehensive Policy instead to cover theft.

No option to enhance the coverage

The Third party Two wheeler Insurance rates are standardised and intended to cover only third-party liabilities. Hence, there is no option to customise the plan with add-on covers such as Roadside Assistance, Zero Depreciation, etc. to enhance the coverage. Also, unlike the Comprehensive Policy, you don’t receive the No Claim Bonus renewal discount with just Third-party bike policy.

Key factors to consider while registering a Third party Bike Insurance claim

Here are some important considerations while raising a Third-party Two-wheeler Insurance claim.

Collect enough evidence

You must have adequate and reliable evidence to submit a claim for damages/losses caused to you, your vehicle or your property.

Inform the police and the insurer

It is crucial to inform the local police and file an FIR since it is one of the mandatory documents required for third-party claims. You also must notify the insurer of the 1st party about the incident to initiate the claim process.

Limitation to the compensation

As per the directives laid down by the IRDAI, the Motor Accident Claims Tribunal determines the compensation for third-party damages. In case of damages to the third-party property, the compensation amount is limited to Rs. 7.5 lakhs. There is no limit to the compensation amount in case of death/injuries to a third party.

Frequently asked questions

Here are some important questions and answers related to Third party Bike Insurance.

Is Third party Bike Insurance mandatory?

Yes, Third-party Two-wheeler Insurance is compulsory as per The Motor Vehicles Act, 1988. Failure to insure your scooter or bike with 3rd Party Insurance shall invite penalties as laid out by the Act.

Can I buy a standalone two-wheeler Third-party Insurance for a bike or scooter?

Yes, you can buy a standalone 3rd Party Insurance for your bike; however, the coverage is limited to third-party liabilities and not for damage to your bike. Therefore, it is better to buy Comprehensive bike insurance for wide-ranging benefits.

How to buy the cheapest Third-party Two-wheeler Insurance?

You can’t get the cheapest 3rd Party Two-wheeler Insurance for your vehicle since the premium rates are regulated and determined by the IRDAI. The cost of Third-party Insurance for your bike remains the same across insurers. However, for a superior experience, consider buying the plan from digital insurance companies such as ACKO. We offer an online mode of buying and renewing two-wheeler Third-party Insurance making it an easier method compared to the traditional offline way.

Is 3rd Party Insurance expensive for two-wheelers?

While the 3rd Party Insurance for bikes is cheaper than Comprehensive Bike Insurance, its coverage is restricted to third-party liabilities. Damages to your bike are not covered. Opt for the Comprehensive Insurance for your two-wheeler (even though it costs more) since it offers coverage for third-party liabilities and own damage of bike.

Can I get 3rd Party Insurance for a new bike or scooter?

Yes, you can buy two-wheeler Third party Bike Insurance online for a brand new bike or scooter. You can scroll to the top of this page or download our mobile app to get a Third-party Bike Insurance Policy for your brand new two-wheeler.

Can I make a claim for third-party liabilities incurred in a different city or state?

Yes, you can raise a claim for liabilities even if the accident occurred in different cities or states. Third party Bike Insurance is valid across India. Ensure you intimate the respective insurer immediately to avoid the possibility of claim rejection.

Will I lose my NCB if I raise a Third-party Two-wheeler Insurance claim?

There is no provision for NCB under the 3rd Party Two-wheeler Insurance. The NCB in bike insurance applies only to the Comprehensive Bike Insurance Policy.

What if someone else was riding my bike during the accident? Will my Third party Bike Insurance cover my losses?

Yes, your Third-party Scooter Insurance will cover your losses even if the insured scooter was driven by someone other than you. However, if the rider did not hold a valid driving licence, your claim could be rejected.

Can I avoid taking Third party Bike Insurance?

No, you cannot avoid insuring your bike with the Third-party Insurance Policy since it is mandatory as per The Motor Vehicles Act, 1988. It is important to insure your bike or scooter with the two-wheeler 3rd Party Insurance. You could also opt for the more extensive insurance coverage by insuring your two-wheeler with the Comprehensive Two-wheeler Insurance Policy.

Is it possible to convert Third-party insurance for my bike into Zero Depreciation insurance?

No, you cannot convert 3rd Party Insurance for your bike into Zero Depreciation Insurance. However, when you renew bike insurance, you can opt for a Comprehensive Policy and pick the Zero Depreciation add-on for enhanced coverage.

How can I get 3rd Party Insurance for my 10-year old bike?

You can buy or renew 3rd Party Insurance for your 10-year old bike on our website or mobile app in a few simple steps.

  • Visit our website or mobile app.

  • Input your bike’s registration number and model.

  • You can either opt for the 1-year or the 3-year long-term plan, pay the premium, and the policy document shall be emailed to you.

How to change from Third-party 2-wheeler insurance to Comprehensive 2-wheeler insurance?

You can switch from Third-party 2-wheeler Insurance to Comprehensive 2-wheeler insurance when you renew two wheeler insurance plan for your vehicle. You can scroll up to the top of this page to buy or get a quote for Comprehensive Insurance for your bike.

Is Comprehensive Bike Insurance also mandatory?

Opting for a Comprehensive policy is rather a logical choice as it offers coverage to repair damages to your bike along with protection against third-party liabilities. Buying this plan will help you get extensive coverage against events like accidents, natural calamities, fire, theft, total loss, third-party liabilities, etc. However, it is not mandatory to buy a Comprehensive Bike Insurance Plan.

Is it possible to buy Third-party fire and theft bike insurance?

No, you cannot customise the 3rd Party Insurance for your vehicle to cover fire damage and theft. Consider buying Comprehensive Coverage for such coverage.

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Third-party bike insurance premium rates expected to be raised

- May 26, 2022

The Third-party Insurance premium rates are expected to be raised next month. The changes to the premium rates are expected across all categories of vehicles. The Third-Party Bike Insurance rates are usually revised annually. However, they were not revised in the last two years due to the COVID-19 pandemic. The insurance industry regulator, the Insurance Regulatory and Development Authority of India (IRDAI), usually notifies the Third-party Insurance rates for bikes. However, this year, the Ministry of Road Transport and Highways (MoRTH) is expected to inform the changes related to the Third-party Bike Insurance premium rates.

ACKO General Insurance Limited

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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

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