Third-Party Bike Insurance
Third-party bike insurance is an insurance policy in which the policyholder is covered by a legal and financial crisis arising from damages caused to a third party person, vehicle, or property in case of an event misfortune. The same is required by law(Motor Vehicle Act, 1988), and failing to do so could result in a punishment of INR 1,000 to INR 2,000.
The quickest and easiest method to protect yourself against third-party liability is to purchase a Third-party two-wheeler insurance policy online. Aside from third-party insurance, you can purchase a comprehensive insurance policy that covers financial losses from damages to your bike caused by natural and man-made disasters.
How Does Third-Party Bike Insurance Work?
Having a 3rd party bike insurance helps relieve stress while driving on the road as it eases the burden of financial and legal liability arising from damages caused by the vehicle.
- The first-party refers to the owner of the insured two-wheeler.
- The Second-party is the insurance company that will settle the claim.
- The third party is the individual filing the compensation claim.
The benefit of obtaining third-party bike insurance is that you may be eligible for reimbursement for medical expenses, lost wages due to death or permanent disability, etc.
Features of Third Party Bike Insurance
There are some notable features of third-party bike insurance that you must know about. These include:
- In case of a bike accident, any damage caused to the bike will not be covered by the bike insurance company. Only third-party losses will be reimbursed.
- Unless you have chosen a personal accident for the owner-driver, the injuries caused by the owner-driver are not covered under a third-party two-wheeler insurance plan. It solely covers bodily injuries caused to others by the insured two-wheeler.
- With the introduction of the online process, purchasing and renewing two-wheeler insurance has become effortless. By going to the Renewbuy website, you may easily renew or purchase bike insurance coverage.
- The premiums are calculated based on your motorcycle's engine capacity.
- Claims for death or physical harm are settled according to the Claims Tribunal's guidelines. The bike insurance company will only accept a maximum liability of INR 7.5 lakhs.
Benefits of Third-Party Bike Insurance
Even though third-party bike insurance is the primary form of insurance, it still has many benefits. To understand the significance of third-party coverage, consider the following advantages:
Mandatory Under Law
The Motor Two Wheelers Act of 1988 makes third-party bike insurance mandatory. You'll need third-party bike insurance if you wish to drive your two-wheeler on Indian roads. Otherwise, you may face fines and punishment without a bike insurance plan.
Financial and Legal Protection
If the two-wheeler owner cannot pay for the damage caused to the third party, the person may face bankruptcy and financial hardship. It might be financially exhausting and cause savings to be depleted. With third-party bike insurance in place, the insurance company take care of your legal responsibilities, allowing you to save for other things.
Buying bike insurance online is the most streamlined process. Just follow the instructions on the website.
A third-party two-wheeler insurance coverage is cost-effective in terms of the premium you must pay. A third-party liability coverage requires a lower premium, which IRDAI regulates.
Peace of Mind
Third-party bike insurance allows the owner to drive the vehicle without worry. The reason behind this is that they do not need to worry about arranging the money if the two-wheeler is involved in a car accident and causes harm or property damage to a third party. The owner can now travel stress-free as a result.
Who can Buy a Third-Party Bike Insurance?
If someone purchases a new or old bike, they can choose third-party bike insurance because it is the cheapest option. Remember that it is a bare minimum that you must meet before riding your bike on the road. It is essential to purchase third-party bike insurance for your two-wheeler because it is legally required to have legitimate third-party bike insurance coverage.
What Does a Third Party Bike Insurance Plan Cover?
When buying bike insurance online, you must know what’s covered in the insurance policy. Continue reading to discover more about what a third-party bike insurance plan includes:
Accidental Demise of the Third Party
In case of an accident leading to the demise of the third party, the bike insurance company will pay the compensation amount to the family members of the third party. The MACT determines how much compensation must be provided.
Damages to the Two-wheeler of the 3rd party
The cost of damages are covered under the third-party bike insurance plan if the insured accidentally hits a third-party two-wheeler. The insurance company covers the damages on behalf of the owner of the covered two-wheeler.
Injury to the third party
A third-party bike insurance policy covers injuries caused by the insured two-wheeler to a third party. Because the two-wheeler owner is responsible for the injuries, the insurer compensates for them in the event of third-party two-wheeler insurance. In the event of bodily injury, the insurance will cover treatment costs.
How does the Compensation Works Under Third-Party Bike Insurance?
- In the event of death, the 100% sum covered can be claimed. However, the percentage may differ amongst insurers in the event of damage to the body parts.
- If a limb or eye loses, the bike insurance company will pay 50% of the covered amount.
- Compensation of up to one lakh rupees in the event of property damage.
What Does a Third Party Bike Insurance Plan Not Cover?
Just like in most insurance plans, some features are not covered. Let us look at some features not covered under third-party bike insurance.
- It does not cover damages experienced by the insured two-wheeler as a result of natural or man-made disasters such as fire, storm, malicious activity, terrorist activity etc.
- A driver is influenced by drugs, alcohol, or other intoxicating substances.
- Gradual deterioration of the two-wheeler or its components.
- Consequential loss or damage to the two-wheeler.
- If a personal two-wheeler is used for business purposes.
- Driving without a valid driving license
- During Nuclear war
- If the two-wheeler is found to be in an illegal act.
Comprehensive Vs Third-Party Two Wheeler Insurance
The comparison of comprehensive vs third-party cover two-wheeler insurance plans are shown in the chart below.
|Area of Comparison||Comprehensive||Third-Party|
|Definition||A comprehensive bike insurance policy combines third-party liability insurance with own-damage coverage to provide you with total protection against all risks!||Third-party bike insurance is a mandated coverage that covers third-party damages. It is required by law in India under the Motor Vehicles Act, 1988.|
|Coverage Details||This policy provides comprehensive coverage. Your bike will be protected from theft, loss, and damage. It provides financial assistance for all types of harm to your bike, another person, car, or property.||This policy provides only basic coverage. A third-party bike insurance policy will protect you against damage or loss to a third party.|
|Add-Ons||This policy includes optional benefits such as Zero-Depreciation Cover, Return to Invoice Cover, Consumable Cover, and Roadside Assistance, among others.||This plan provides only Personal Accident Cover.|
|Which is Better?||Recommended if you require comprehensive coverage for your bike as well as add-ons.||Only in a case where you ride your bike very rarely.|
|Premium Price||A comprehensive bike insurance coverage has a higher premium than third-party insurance.||This plan has a low rate of premium.|
How to Compare a Third Party Bike Insurance Policy Online?
Comparision is much needed when it comes to buying an insurance policy. Though many websites offer plans, Renewbuy ensures that the process is simple and efficient. Follow the steps mentioned below to compare third-party bike insurance policies online.
- Visit Renewbuy.com
- Choose your city and information about the two-wheeler, such as its year of manufacture, make, model, and variant.
- Check the claim settlement history of the bike insurance company.
- Choose one company that offers value-for-money pricing based on your choices.
The procedure is straightforward, and the results will be available in minutes. You can review bike insurance policies and select the one that best meets your needs.
How is Third-Party Bike Insurance Premium Calculated Online?
The Two-wheeler insurance premium calculator is a tool that determines the amount of premium payable while purchasing the third-party two-wheeler insurance policy. It makes it easy to get insurance quotes at any given time. One of the advantages is that it helps you take an intelligent decision since you can compare insurance policies online and choose the best insurance policy accordingly.
Here are some key points to consider when determining the cost of third-party bike insurance.
- The IRDAI sets the rates for two-wheeler third-party insurance, and the insurer does not set them.
- The regulator regularly revises the prices, depending on input from various insurance industry stakeholders.
- The bike engine’s cubic capacity is the reason that determines the rate for third-party bike insurance.
Third-Party Bike Insurance Premium Rates
The Insurance Regulatory and Development Authority of India (IRDAI) sets the premium rates for third-party two-wheeler insurance. The two-wheeler's engine capacity determines this insurance premium.
|Bikes with Cubic Capacity Engines||Third-Party Bike Insurance Premium Rate|
|Not exceeding 75 cc||482|
|Exceeding 75 cc but not exceeding 150 cc||752|
|Exceeding 150 cc but not exceeding 350 cc||1193|
|Exceeding 350 cc||2323|
The IRDAI Orders On Premium Rates for Motor Third-Party Liability Insurance Cover for the Financial Year 2019–20, Effective As of June 16, 2019, were the data's primary source.
Process to Buy Online Third-Party Bike Insurance Policy?
For many people, two-wheelers are a vital element of daily life. Purchasing new third-party bike insurance online is not difficult; it is simple. Anyone can purchase insurance online by entering a few data, making a payment, and receiving the insurance policy in a few clicks.
Steps to Buy Third-Party Bike Insurance from Renewbuy
Fill in the two-wheeler details and model.
Year of Purchase
Get the Instant Quote
You may tailor the bike insurance policy to your needs by purchasing add-on coverage.
Compare plans, choose the most suitable bike insurance policy and pay.
Thus, following these simple procedures, you will have the insurance policy in hand in minutes. The entire procedure is simple and does not involve much time or effort.
Invoice of the two-wheeler
Valid driving license
Best Third-Party Bike Insurance Companies In India 2023
We have curated a list highlighting the popular third-party two-wheeler insurance companies in India.
- National Insurance
- Digit Insurance
- HDFC ERGO General Insurance
- IFFCO TOKIO General Insurance
- ICICI Lombard General Insurance
- Bajaj Allianz General Insurance
- Reliance General Insurance
- Shriram General Insurance Company
How to Claim Third Party Bike Insurance?
Under the third-party bike insurance claim process, the insured and the victim can make a claim. We have written down the steps for you to follow:
For the insured:
- Capture photographs of the damaged parts of the bike
- Take down all pertinent information about the damaged vehicle.
- Inform your insurance company of the accident as soon as possible and follow their instructions.
- Fill out FIR at the local police station.
- Register your case at the Motor Accident Claims Tribunal Court with the assistance of a lawyer.
- Submit the valid documents
- Get Court’s order and forward it to the insurance company to claim.
For the Victim:
- Write down the details of the third party involved.
- Inform the bike insurance company.
- After the information is processed, the case will be transferred to the Tribunal.
- Submit the required documents.
- Based on the facts, the tribunal will assess the amount of compensation to be paid.
Documents Required to File a Claim Under Third-Party Bike Insurance
To file a claim, you need to submit the following documents to make your claim process easy.
- Claim form
- Valid Driving License
- Registration Certificate of the two-wheeler
- Copy of FIR
- Receipt of the Tax Paid
- Identity proof such as Aadhar Card, PAN card, etc.
- Bike insurance policy papers
Renew Third-Party Bike Insurance
It is critical to renew your third-party bike insurance policy on time to reap the benefits of the policy. Driving your two-wheeler on the road without appropriate third-party liability insurance is also unlawful, and you may face penalties if you do so. As a result, renew your third-party two-wheeler insurance coverage on time.
Your bike insurance coverage must be renewed with the following documents:
- Registration Certificate
- Driving License
- Last year's bike insurance policy
- any additional records that the insurance company might want