All You Need to Know About Third-Party Bike Insurance Coverage


Far often, there is a mention of motor insurance in the news. Lately, the topic of discussion has been due to the change in the regulations for its coverage. The law makes it mandatory for every vehicle plying on the roads to have a valid copy of insurance certificate.

When searching for a motor insurance plan, at first, you have two choices – Comprehensive or Third-Party. You can opt for either of them, but the minimum requirement as per law is of a third-party liability insurance policy.  A third-party policy is one of the most economical insurance plans that you can buy while complying with the legal requirements.

What is third-party bike insurance?

Under a third-party insurance cover, the insurance company agrees to indemnify the policyholder in case there is a legal obligation. This legal obligation can be for the injuries sustained or damage caused to any third party in case of an accident. For instance, if an accident occurs due to your fault, the cost of damages to any such person or entity shall be covered by your insurance company. Although, you must note that third-party bike insurance policy does not insure the cost of damage to your vehicle.

What is the coverage under third-party bike insurance?

Third-party bike insurance covers cases of injury or death in case of an accident. Any permanent disability of a third party individual that occurs due to an accident is also covered under a third-party insurance plan. For the damage or destruction of any property due to an accident, the coverage is available up to a specified limit of ₹7,50,000 with this type of insurance.

Who can make a claim using third-party bike insurance?

The individual or the entity who is affected can file a claim using the third party insurance policy of the person at fault. It can be submitted at the tribunal under whose jurisdiction the accident took place or where the person at fault resides or at where the aggrieved individual or his dependants stay.

What are the exclusions under a third-party policy?

Third-party bike insurance does not cover the cost of damages to your vehicle or even any injuries suffered by you.  Moreover, the regulatory body, Insurance Regulatory and Development Authority of India (IRDAI), has an upper limit of ₹7,50,000 in case of third-party damage to property due to an accident. However, you should note that this limit does not apply in case of injuries or permanent disability to such other person. Also, non-abidance of insurance terms can lead to a rejection of your claim application. Situations like theft, damage to your bike when parked or due to war or when driving under the influence of alcohol or other intoxicant is not covered by a third-party insurance plan. Keep in mind these inclusions and exclusions at the time of bike insurance renewal and remember that an expired / invalid policy may lead to a rejected claim.

It will not only help you make a smart choice, but also select the right insurance policy for your two-wheeler. One more nifty tool that can help you compare the various plans across different insurers is a bike insurance calculator. Using this tool, comparing and shortlisting suitable policies is a breeze. Finally, make the best use of third-party bike insurance policy and avoid legal complications while ensuring protection for your bike.