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Third-Party Bike/Two-wheeler Insurance

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

Just as you make sure to buy the best motorcycle, scooter or even an electric scooter, you must also make sure that you protect your two-wheeler with bike insurance. As per The Motor Vehicles Act, 1988, you must insure your vehicle at least with Third-party Bike Insurance. Failure to adhere to this mandatory requirement may result in penalties.

What is Third-party Bike Insurance?

Meaning

It is the most basic type of bike insurance that offers coverage against financial liabilities claimed by a third person. The third-party can raise a claim in case of damage to their vehicle or property or injury/death of the third party caused by an accident, where the insured (your) two-wheeler is at fault.

Importance

It is mandatory as per law, and if you are found riding the bike without this type of two-wheeler insurance policy, you could be liable for a penalty of Rs. 2,000 to Rs. 4,000 (subject to changes).

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

As per the Ministry of Road Transport and Highways (MoRTH) research wing, approximately 4.5 lakhs of road accidents occurred in 2019. The sheer high number of accidents increases the importance of having your bike insured at all times. Here are some of the reasons why you need Third-party Two-wheeler Insurance.     

Key features of two-wheeler Third-party Insurance offered by ACKO

The table below provides an insight into the essential features of ACKO’s third-party bike insurance policy. The premium of the third-party bike insurance listed below is fixed by the Insurance Regulatory and Development Authority of India (IRDAI) and is based on the engine cubic capacity (cc).

Key features ACKO Two-wheeler 3rd Party Insurance Policy Benefits
Injuries to a third person Unlimited liability cover
Property or vehicle damage to a third person Up to Rs. 7.5 lakhs
Process to buy/renew/raise claims 100% digital/online
Personal Accident Cover* Up to Rs. 15 lakhs

*To be purchased as a separate cover.

Benefits of buying Third-party Bike Insurance

Here are some of the key benefits of Third-party two-wheeler insurance.

Paperless purchase

With new-age insurers such as ACKO, you can perform almost all transactions online. All you need is an internet-enabled smartphone or device to buy or renew the insurance plan online within a few clicks. It is that simple.

No financial burden

This type of bike insurance offers you financial protection against damages caused to the third party, especially expenses related to medical needs. It also provides a financial cover of up to Rs. 7.5 lakhs in case you accidentally cause damages to a third party’s vehicle or their property.

Comply with the law

All vehicle owners must possess this type of two-wheeler insurance policy since it is mandatory as per The Motor Vehicles Act, 1988, ensuring you are not breaking any laws. It is also beneficial since your insurer settles third-party claims.

Ride without stress

Accidents can dent your finances, especially when a third party suffers financial loss and you have to pay for the expenses. The plan provides you peace of mind knowing you can ride your bike without the stress of financial liabilities of the third person.

Lower documentation process

To insure your bike with this type of two-wheeler insurance requires less paperwork or documentation. The process can be completed with fewer formalities as compared to other bike insurance plans. It requires lower inspection or checks as it does not insure the vehicle.

Economical alternative

The premium is relatively cost-effective compared to other types of bike insurance. As the IRDAI fixes the Third-party Liability Plan premium based on the engine cubic capacity, there are significantly fewer chances of a sudden price hike.

What’s covered in Third-party Bike Insurance?

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

Compensation for property damage

If your vehicle causes damages to a third person’s property or vehicle; you are covered for the loss of up to Rs. 7.5 lakhs.

Compensation for personal damage

If your bike causes an accident and the third party is injured, all the medical expenses until recovery are covered under this plan. In case of unfortunate death, the plan offers unlimited liability coverage.

Compensation for liabilities of owner/driver

If you have not opted for the Personal Accident Cover (PA) already, you can include it while purchasing this 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 exclusions under the Third-party Two-wheeler Insurance.

Own Damages

Damage to your bike due to an accident, natural or manmade calamities are not covered under the Third-party Liability Plan. You have to opt for Comprehensive Insurance to cover damages to your vehicle.

Riding without valid documents

If the owner/rider of the insured vehicle is found riding the vehicle without valid documents such as bike insurance policy, Driving Licence (DL), Registration Certificate (RC), etc., the insurer may reject your claim.

Riding under the influence of alcohol or drugs

If the rider is found riding the bike under the influence of alcohol or drugs, your bike insurance will not cover for you in case of third party liabilities.

Third-party Bike Insurance premium rates

Here are the two-wheeler Third-party insurance rates applicable in India as of February 2022.

Engine Capacity (CC) Third-party Bike Insurance Cost*
Up to 75 Rs. 482
75 to 150 Rs. 752
150 to 350 Rs. 1193
350 and Above Rs. 2323

*Prices are subject to change.

How to renew a Third-party Two-wheeler Insurance Policy

The third-party bike insurance policy renewal is a simple procedure at ACKO. Follow the process below for a hassle-free experience.

New to ACKO

ACKO customers

Your policy document is sent immediately to your registered email address, or you may also download the policy from our website or mobile app.   

Claim process for Third-party Bike Insurance

The claim process for Third-party Two-wheeler Insurance Policy is simple and easy. Follow the process mentioned below for both policyholder and third person.

If you are the victim

In case a third person’s bike causes damages to your vehicle or property,

If you caused the damage

Ideally, the third party must file an FIR at the local police station.

Documents required for the third-party claims

Here are the documents needed to raise third-party claims.

Long-term Third-party Two-wheeler Insurance for new bikes

The high number of uninsured vehicles on the roads has prompted the Insurance Regulatory and Development Authority of India (IRDAI) to make bike insurance mandatory for all types of vehicles.

When you buy a brand new bike, it is compulsory to insure your bike with a 5-year Third-party Liability Plan along with a 1-year Own Damage plan (5-years TP Plan + 1-year Own Damage Plan). You also have the option to buy a 5-year Own Damage Plan. 

Here are some of the advantages of long-term third-party bike insurance.

How to calculate Third-party Two-wheeler Insurance premium?

The Third-party Bike Insurance price is fixed by the IRDAI and not by the insurer (ACKO in this case). The cost is based on the cubic capacity of the bike’s engine. The regulator revises the Third-party Two-wheeler Insurance premium rates periodically. 

You can check the Third-party Bike Insurance cost for your bike through our bike insurance premium calculator. It offers quotes for both annual and long-term plans.

Factors that affect Third-party Two-wheeler Insurance premium

The Comprehensive Bike Insurance Policy considers various factors such as the year of manufacture, the Insured Declared Value (IDV), and the vehicle model to determine insurance cost. However, the Third-party Two-wheeler Insurance Policy considers only a single factor while determining the vehicle's insurance cost which is the engine cubic capacity.

The cost of a Comprehensive Policy is calculated by ACKO, while the IRDAI determines the price of a Third-party Policy. The apex body fixes the rates based on the engine cubic capacity.

Also, read: No Claim Bonus (NCB) in Bike Insurance

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

An ideal approach to determine which is the best policy for your bike is to compare them based on the coverage and premium.

Coverage

Third-party Insurance for your bike is compulsory as per The Motor Vehicles Act, 1988. However, it does not provide financial coverage in case of damages to your bike. The Comprehensive Bike Insurance Policy offers wide coverage since it provides financial coverage for both third-party liabilities and damages to your vehicle.

Premium

The Third-party Insurance price is lower than the Comprehensive Bike Insurance Plan as the coverage is limited to third-party liabilities. As in the case of the Comprehensive insurance plan for bikes, it offers basic financial coverage for your bike, and it also has the option to enhance the coverage by including relevant add-on covers. 

*To be purchased as a separate cover.

Third-party Bike Insurance for top-selling models in India

Honda Activa Insurance TVS Jupiter Insurance Suzuki Access Insurance Honda Shine Insurance
Royal Enfield Bullet Insurance Suzuki Gixxer Insurance Honda Hornet Insurance TVS Scooty Insurance
Honda Dio Insurance Bajaj Pulsar NS 200 Insurance Hero Splendor Insurance Hero Passion Insurance

Importance of Third-party Bike Insurance

Here is why Third-party Two-wheeler Insurance is important for you.

Also, read: Comprehensive vs Third Party Two Wheeler Insurance

Frequently Asked Questions (FAQs)

Here are some of the common questions related to Third-party Bike Insurance.

Is it mandatory to insure my bike with the Third-party Bike Insurance Plan?

Yes, all vehicle owners must possess the TP Plan to ride the vehicle on public roads. This is mandated as per The Motor Vehicles Act, 1988. Failure to insure the bike at least with this plan shall result in huge penalties or even imprisonment. However, you must choose Comprehensive Bike Insurance to protect your bike against accidental damage or even theft for broader coverage.

Can I buy only the Third-party Bike Insurance for my bike?

Yes, you can buy the Third-party Two-wheeler Insurance as a standalone plan. You have the option to buy the plan as an annual or long-term plan (1 year/3 year).

Is the Third-party Insurance Plan enough for my bike?

While this type of vehicle insurance plan is primary, it does not provide financial protection against damages or losses sustained by your bike. You may purchase the optional Comprehensive Insurance Plan for broader coverage since it includes both the Third-party Liability Plan and the Own Damage plan. You can also choose from various add-on covers to further increase the Comprehensive Bike Insurance Policy’s coverage.

What is the maximum compensation amount offered in the Third-party Two-wheeler Insurance Policy?

There is no fixed compensation amount for physical injuries or death to a third person or party. As for damages to their property or vehicle, the compensation amount is fixed at Rs. 7.5 lakhs.

How to buy the cheapest Third-party Bike Insurance Policy?

The rates for Third-party Insurance is fixed by the IRDAI, and insurers do not set the Third-party Insurance cost. The IRDAI revisits the cost of third-party insurance periodically and fixes the rates. Therefore, there is no way you can get the cheapest Third-party Bike Insurance Policy since all insurers offer this type of policy for the same premium amount.

What happens if I am caught riding without valid Third-party Bike Insurance?

The penalty for riding a bike without valid bike insurance attracts a fine of Rs. 2,000 for the first offence, and Rs. 4,000 for the second offence (subject to changes).

Is 3rd party bike insurance more expensive?

No, the 3rd party bike insurance is not more expensive than the Comprehensive Bike Insurance Policy. The cost is based on the vehicle engine cubic capacity and is fixed by the IRDAI and not by the insurers.

Which insurance is best for bikes? Comprehensive or third-party?

Although the third-party insurance is cost-effective, it is the comprehensive insurance that offers the maximum coverage since it includes Third-party Liability Plan and Own Damage cover components. You can also opt for add-ons to increase the scope of the coverage.

Can I raise a claim for accidental damages incurred in a different city or state?

Yes, you can submit a claim against our vehicle insurance policy for damages incurred in a different city or state as the bike insurance coverage is valid across India. Ensure you inform the respective insurer immediately about the accident to initiate the claim.

CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

The use of images and brands are only for the purpose of indication and illustration. ACKO claims no rights on the IP rights of any third parties. The ratings are derived from reviews and feedback received from Google and Facebook users on their respective platforms. | *Savings of upto Rs. 50,000 have been calculated on the IDV of Rs. 18,00,000 and 0% NCB. Amount saved is in comparison to tariff rates. Product name: Private Car Policy - Bundled | UIN: IRDAN157RP0014V01201819 |

Trade logo displayed above belongs to ACKO Technology & Services Pvt Ltd and used by ACKO General insurance Limited under License. For more details on risk factors, terms, conditions and exclusions, please read the policy wordings carefully before concluding a sale.