Importance of Bike Insurance with Third-Party Coverage

Third-party bike insurance is a basic insurance policy most bike owners opt for after purchasing a new bike. It covers the financial expenses of the ‘third party’ or other individual involved during an accident or collision. The expenses can be their medical expenses, repair costs, or even legal liabilities.

Bike insurance policies are essential due to the increasing number of road accidents each year. They also come with several benefits that many bike owners enjoy.

What Is Third-Party Insurance For Bikes?

Third-party insurance for 2-wheelers is an insurance policy that covers the costs for damages caused to the other person(s) during an accident. A two wheeler third party insurance policy covers the repairing costs for damages caused to the third-party property or medical costs for any bodily injury caused to a third-party person.

Further, for anyone that wishes to drive freely on public roads, it is mandatory to have at least a third-party bike insurance policy under the Motor Vehicles Act of 1988.

What Is Covered Under Third-Party Insurance?

Third-party motorbike insurance offers a maximum cap of ₹7.5 Lakhs as coverage for property damage. This amount is also paid in full as a death benefit in case of loss of life of the third party individual during the accident. The specific expenses covered for damages will vary based on factors like age, profession, income, and status.

Most basic third-party motorbike insurance plans offer coverage for:

  • Bodily harm, injury, or death of the third party individual.
  • Property damage of the third-party (vehicle or actual property).
  • A personal accident cover that covers up to ₹15 Lakhs for the bike owner can be purchased for an additional premium.

What Is Not Covered Under Third-Party Bike Insurance?

Here are some exclusions that aren’t covered under third-party motorbike insurance:

  • Your insurance will not cover damages or losses caused to you as the bike owner if your plan doesn’t include a personal accident cover.
  • Your insurance company will not cover costs if you are found to be breaking any traffic laws at the time of the accident. This can include driving while drunk, driving without the appropriate documents like driver’s licence, registration certificate, PUC certificate, or valid bike insurance.
  • Your insurance will also not cover damages caused by accidents outside the geographical border of India.
  • Claims will not be processed if you are found to violate the terms of your contract.
  • Lastly, claims will not be processed for damages caused during wars, riots, or radioactive contaminants.

Key Features Of Third-Party Motorbike Insurance

Before you buy third-party two-wheeler insurance, it is best always to check what features the insurance plan offers and, more importantly, the exclusions under it.

  • Legal Liabilities And Financial Damages

Bike insurance for a third party covers most or all the financial expenses filed by the third party during an accident. So rather than you having to foot the bill for repair costs for the third party, your insurance company offers to pay for them instead.

It also offers legal protection when settling an accident or collision claim. This is beneficial as court cases can be tedious and expensive.

  • Property Damage

In case of property damage to the third party’s actual property or vehicle, third-party motorbike insurance offers coverage up to ₹7.5 Lakhs to the third-party individual. As a result, you have no financial obligations towards the other party during an accident since your insurance will cover the costs.

  • Affordable

Third-party two-wheeler or bike insurance policies are cheaper than other bike insurance policies. This can be great for bike owners only looking for a basic plan when they purchase a 1-year insurance plan.

  • Personal Accident Cover

Most third-party bike insurance policies only offer financial coverage for damages incurred to the third party unless you have a personal accident component under your plan. A personal accident cover is an additional component included in third-party insurance policies for an additional premium amount.

It covers up to ₹15 lakhs of damages to the owner and the owner’s vehicle. The coverage can also be increased if taken as an add-on cover. It’s especially beneficial when used with a knock-for-knock agreement.

This is where the insurance companies foot the bills for repair costs for their respective clients after an accident rather than going through the hassle of a lengthy claims settlement process. Most insurance companies have knock-for-knock agreements for the specific purpose of streamlining their claims processes.

  • No Stress

In India, you can get fined up to ₹2,000 if you’re caught riding a bike without insurance. If you’re caught a second time, that amount goes up to ₹4,000. So it’s always best to have a basic third-party bike insurance policy in place so you don’t have to stress about being pulled over whenever you go out for a drive.


When you compare two-wheeler insurance policies, you will find that third-party two-wheeler bike insurances offer significantly lower premium rates and are generally more affordable than other types of bike insurance plans. As a result, it’s often the go-to insurance plan for most bike owners. Also, it is a legal mandate, and people must buy it. And if you are planning to get yours, get it from a prominent insurance company like Tata AIG.