Third-party bike insurance is a mandatory liability cover that protects your two-wheeler against any injury, death, or property damage caused to a third party in case of a road accident that involves the insured vehicle. Under the Motor Vehicles Act, 1988, all two-wheeler owners are compulsorily required to own this insurance. Failure to own this type of bike insurance may result in penalties, such as fines of up to ₹2000 imposed by traffic cops.
Check out the list of features offered by a Third-Party Bike Insurance that make it a trusted choice for many:
It is compulsory for all two-wheeler owners in India to have third-party insurance as per the Motor Vehicles Act.
This insurance assures you of both legal and financial protection against third-party liabilities.
The premium rates are fixed by the Insurance Regulatory and Development Authority of India (IRDAI). Compared to a comprehensive bike insurance policy, third-party bike insurance offers lower premiums.
Does not cover damage to own vehicle on account of theft, fire, or natural or manmade disasters but ensures coverage for injury, death, or property damage occurring to a third party.
Provides coverage for damage to third-party property up to ₹1 lakh.
Provides unlimited financial compensation for bodily injury or death of a third party, as decided by the Motor Accident Claims Tribunal or court.
New bike owners have to own a mandatory policy of 5-year third-party insurance, as per the Supreme Court guidelines./p>
Disclaimer: The above mentioned prices are for a 2 year old Hero Honda Karizma R 223 CC, registered in Navi Mumbai & previous policy has expired.
To understand how this third party two wheeler insurance works, let’s explain it with the help of an example:
Suppose Mr. Sharma sets out on the road with his insured two-wheeler and meets with a road accident. This accident has resulted in damage to another two-wheeler and injury to its driver. Now, Mr. Sharma needs to inform the insurance provider regarding the incident.
Here is where Third-Party Bike Insurance effectively steps in to cover the following:
In all, Mr. Sharma does not have to bear the brunt of the financial compensation to the third party, but it does not cover any damage or injury caused to him or his vehicle.
Here are certain points that are covered by your third-party insurance policy:
In case of a road accident, if there is damage caused by your two-wheeler that results in third-party injury, disabilities or death, then this insurance will bear the medical expenses and legal liabilities arising from it.
If there is damage caused by your two-wheeler to third-party property, including any vehicles or buildings, then this insurance compensates up to ₹1 lakh as coverage.
This insurance policy offers a compulsory personal accident cover with a maximum amount of up to ₹15 lakhs for the owner-driver, ensuring financial coverage in case they face injury, disabilities or even death due to an accident.
Here are certain points that are not included in your insurance policy:
If the driver meets with an accident but is found to be without a valid driving licence, intoxicated with alcohol or drugs, or found to be carrying out any criminal activity, then the claims can be rejected.
Damage arising to the vehicle when driving outside the specified geographical location of the policy, or if a private bike is used for commercial purposes, like delivery or ridesharing, will not be covered by the insurance company.
Damages arising to the owner-driver’s vehicle on account of natural calamities like floods, earthquakes, tsunamis, etc., or manmade events like war, riots, etc., will not be covered under this insurance.
In case the damage or loss occurs to an insured vehicle, and it is found to be pledged to some other party, then it will not be covered by this insurance policy.
If the vehicle is found to be used for extreme purposes, like dexterity trials, organised racing, and speed testing, then certain policies may not cover the damages arising due to these factors.
Here are the benefits of opting for a Third-Party Bike Insurance:
Stay protected from penalties by fulfilling the legal requirement of third-party insurance.
Avoid hefty expenses arising from third-party claims, ensuring peace of mind.
Budget-friendly option with low premiums compared to comprehensive policies.
Streamlined claim settlement process for third-party damages.
Instant policy issuance ensures you are covered immediately.
Opting for third-party insurance is a cost-effective way to ensure your bike's legal compliance while safeguarding your financial interests.
The premium rates for bikes in third-party insurance are determined by the Insurance Regulatory and Development Authority of India (IRDAI). Based on the bike's engine capacity, the rates will differ for traditional and e-bikes. Let us have a look at what these rates are for both bikes in terms of both single-year and multi-year plans:
| Bike Type | Engine Capacity / Motor Power | 1-Year Premium (₹) | 5-Year Premium (₹) |
|---|---|---|---|
| Petrol/Diesel Motorcycles | Up to 75 cc | ₹538 | ₹2,901 |
| Petrol/Diesel Motorcycles | 75 cc to 150 cc | ₹714 | ₹3,851 |
| Petrol/Diesel Motorcycles | 150 cc to 350 cc | ₹1,366 | ₹7,365 |
| Petrol/Diesel Motorcycles | Above 350 cc | ₹2,804 | ₹15,117 |
| E-Bikes | Up to 3 kW | ₹457 | ₹2,466 |
| E-Bikes | Above 3 kW and up to 7 kW | ₹607 | ₹3,273 |
| E-Bikes | Above 7 kW and up to 16 kW | ₹1,161 | ₹6,260 |
| E-Bikes | Above 16 kW | ₹2,383 | ₹12,849 |
Note: The rates mentioned above by the IRDAI are subject to change. Review the official website for further updates.
Have a look at the differences between Third-party bike insurance Vs. Comprehensive bike insurance:
| Feature | Third-Party Bike Insurance | Comprehensive Bike Insurance |
|---|---|---|
| Legal Liability | Covers legal liabilities for injury, death, or property damage to third parties | Covers legal liabilities for third parties as well as own vehicle damages |
| Own Bike Damage | Not covered | Covered (accidents, fire, theft, vandalism, etc.) |
| Natural/Man-Made Calamities | Not covered | Covered (floods, earthquakes, riots, etc.) |
| Add‑Ons | Not available | Wide range available (zero depreciation, engine protection, roadside assistance, etc.) |
| NCB Accumulation | Not applicable | No Claim Bonus (NCB) benefit for claim-free years |
| Premium Cost | Lower, fixed by IRDAI, based on engine capacity | Higher, depending on bike value, location, add-ons, and engine capacity |
| Customisation | Does not offer customisation | Customisable (sum insured/IDV, add-ons, etc.) |
| Personal Accident Cover | Mandatory for the owner-driver | Mandatory for the owner-driver |
| Legal Requirement | Mandatory by law for all two-wheelers | Optional, but recommended for broader protection |
| Coverage for Theft | Not covered | Covered |
| Coverage for Own Injuries | Not covered (except for personal accident cover for owner-driver) | Covered (personal accident cover as well as own damage in accidents) |
| Who Should Buy | Those seeking minimum legal compliance and a low premium | Those wanting enhanced protection for their bike and themselves |
Coverfox makes the process of buying or renewing third-party bike insurance not only simple but also hassle-free and quick:
Once you visit the official Coverfox website, enter basic details about your bike, such as the model, registration number and location.
Coverfox will then display a wide variety of third-party insurance plans from renowned insurance providers. Go ahead and compare the premiums of each of these policies to find the best-suited, budget-friendly yet beneficial option.
Select the term of your policy, be it for 1 year, 3 years or 5 years, to determine how long you want the coverage.
You are saved from the hassle of paperwork or physical copies, as you can simply submit the required documents online.
Once you pay online through Coverfox’s secure payment gateway, you will immediately receive your policy in your email inbox.
Set reminders for the expiry of the policy and then follow the same process for an instant and smooth policy renewal–within minutes!
Confused about which platform to visit to compare a variety of third-party insurance plans and finally land on the best one for you? Coverfox makes the job easier—allowing you a convenient online platform to not just review multiple plans from top insurers, but also compare bike insurance prices, select add-ons, and get discounts to finally select the one that is tailored for you! With a user-friendly interface that assures you of a clear explanation of plans, you are provided with a reliable guide to seamless insurance buying or renewing.
Here are the reasons why you cannot go wrong with Coverfox as your trusted medium:
Access plans from trusted insurers in one place.
Compare and select the best-priced policy for your budget.
Buy or renew policies in minutes without paperwork.
Our team ensures seamless assistance during purchase, renewal, or claims.
Clear insights into coverage, benefits, and exclusions for informed decision-making.
With Coverfox, you get the perfect blend of affordability, convenience, and expert guidance.
With Coverfox, you are provided with a dedicated claims-support team that is accessible to you at all times. Simply, get in touch with our Customer Support Unit on 022 4897 1018 for both your Car and Bike insurance claims.
Here is a list of documents needed for a smooth-sailing claims process:
Here are the details for the scale of compensation offered for third-party damages:
| Incident | Compensation Amount |
|---|---|
| Demise (death) 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 ₹1 lakh compensation |
The Insurance Regulatory and Development Authority of India (IRDAI) is responsible for fixing the premium rates of Third-party Bike Insurance. Here is all you need to know about it:
The only factor in determining the premium rate depends on the bike’s engine capacity. The higher the capacity, the higher the rate.
Based on whether you have chosen single or multi-year insurance plans, the rates will be higher for multi-year plans.
Based on the type of bike you own, whether a traditional or e-bike model, the premium rates for e-bikes may be significantly lower.
It is important to note that every year, the IRDAI periodically revises the premium rates, signifying a potential increase. Based on the latest updates, the Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Road Transport & Highways (MoRTH) are determining the possibility of raising third-party motor insurance premiums by an average of up to 10%, with implementation expected by October 1, 2025, or possibly April 1, 2026. To stay up to date with these rates, make sure to regularly check the official IRDAI website!
Ans: Yes, you can easily buy third-party insurance on Coverfox with a simple and secure online process.
Ans: It covers third-party liabilities like property damage (up to ₹7.5 lakh) and injuries or death caused by your bike.
Ans: Coverfox provides expert guidance and a user-friendly platform to file and track claims effortlessly.
Ans: The insurer investigates the claim, and compensation is settled based on court directives or policy limits.
Ans: Visit Coverfox, enter your bike details, compare renewal options, and pay securely online to renew instantly.
Ans: When comparing a third-party bike insurance vs. comprehensive bike insurance policy, it is vital to note that a third-party bike insurance will only cover damages or injury to the third party, whereas comprehensive bike insurance, though at slightly higher premiums, will allow enhanced protection against own-vehicle damage, third-party liabilities and natural or manmade disasters as well.
Ans: A long-term third-party bike insurance is essential to safeguard yourself and your vehicle from third-party liabilities. A longer term proves to be beneficial to prevent financial consequences in case a policy renewal deadline is missed.
Ans: Unfortunately, No-Claim Bonus (NCB) is not applicable for a Third-party bike insurance policy. This is the benefit received that allows you a discount on premiums for all the years that you have not raised a claim.
Ans: Purchasing at least third-party bike insurance is a legal mandate under the Motor Vehicles Act, 1988. If a driver is found to be on the roads without a motor insurance policy, they could face fines up to Rs 2000 and risk liability for all kinds of damages. Repeat offences may also lead to an increased fine of up to Rs. 4,000 and/or imprisonment of up to 3 months.
Ans: Vehicle ownership can be carried out both offline and online, either through the RTO or utilising the online platform of Parivahan Sewa. In case of transfer of ownership, it is vital that the new vehicle owner informs the insurance company and provides the necessary documents for the update.
