Third-Party Bike Insurance

A third-party bike insurance is a type of insurance plan that offers financial protection against third-party and property damage caused by the insured vehicle.

For example, suppose you accidentally collide with another vehicle while riding your scooter home from work. In that case, the repair costs for the other vehicle will be covered under your third-party bike insurance plan.

The purpose of the third-party bike insurance plan is to provide basic coverage to vehicle owners and ensure they comply with the law. The third-party bike insurance plan offers basic coverage to the policyholder, which is why it has a lower premium.

Third-party bike insurance is not only a mandatory requirement under Indian law but also a smart way to protect yourself from unexpected financial liabilities. Here are some of the benefits of the best third-party insurance for bikes.

Legal Compliance

Having third-party bike insurance ensures that you are complying with the Motor Vehicles Act, 1988. Without it, you risk heavy penalties and even legal action, making this coverage essential for every bike owner.

Financial Protection

In the event of an accident, this plan covers the expenses for damages or injuries caused to another person or their property. It saves you from paying hefty amounts out of pocket, which could otherwise strain your finances.

Affordable Premium

The third-party insurance for two-wheelers is comparatively lower than other insurance plans, such as own-damage and comprehensive car insurance. This is due to the fact that the coverage offered under this plan is basic.

Accidental Coverage

If an accident results in injury or death to a third party, the insurance provides compensation to the affected person or their family. This reduces your personal liability and offers financial relief to the third party.

The working of the third-party bike insurance plan is easy. Here is how the two-wheeler insurance online third-party plan works.

Step 1: Incident Occurs

If your bike causes an accident leading to injury, death, or property damage to a third party, you must inform your insurance provider and file a first information report.

Step 2: Gather Documents

To ease the claim process, you also need to gather all relevant information, such as photographs and videos of the incidents, a copy of the FIR, the vehicle registration certificate, and more.

Step 3: Claim Evaluation

The insurance provider evaluates the documents, and the MACT (Motor Accident Claims Tribunal) reviews the case. If the tribunal finds you at fault and awards compensation, the insurance provider directly pays the third party or property owner up to the coverage limit.

Step 4: Claim Settlement

Once the tribunal gives its decision, the insurance provider settles the awarded compensation amount with the affected party.

Disclaimer: The percentage of compensation offered under third-party bike insurance may vary according to the policy terms and conditions of the insurance company.

TATA AIG offers third-party bike insurance plans that offer coverage against financial burden arising from third-party or property damage caused by insured vehicles. Let us take a look at different third-party bike insurance plans.

Standalone Third-Party Long-Term Two-Wheeler Insurance Policy

The plan eliminates the stress of annual renewal by offering multi-year third-party coverage, protecting against liability for accidental injury, death, or property damage caused by your vehicle anywhere in India.

It also comes with personal accident cover of up to ₹15 lakhs for the owner-driver in the event of death, disability, or injury while using the insured vehicle. Under this plan, the premium rate will be locked for multiple years, shielding policyholders from annual rate increases.

5 Years Standalone Third-Party Long-Term Two-Wheeler Insurance Policy

This policy offers a 5-year long-term option for third-party bike insurance, addressing the hassle of annual renewals and protecting against premium hikes. It covers legal liability for death, bodily injury, or property damage to third parties as per the Motor Vehicles Act.

The policy also includes a personal accident cover for the owner-driver up to ₹15 lakhs. Under this policy, policyholders will also receive a pro-rata refund on cancellation for valid reasons.

Also Read: Long-Term Third-Party Bike Insurance

The premiums are primarily regulated by the Insurance Regulatory and Development Authority of India (IRDAI). However, third-party two-wheeler insurance prices depend on various factors that reflect the risk and potential liability associated with insuring a specific two-wheeler. Understanding these factors helps buyers anticipate costs and choose an insurance plan that fits their needs and budget.

Engine Capacity

The first factor that directly affects the third-party bike insurance premium is engine capacity. The engine capacity is generally measured in cubic capacity. Bikes with small cubic capacity engines, up to 75cc, generally have lower premiums, while engines above 350cc attract higher premiums.

Make and Model

Another factor that affects the third-party bike insurance premium is brand, model, and variant. Higher-end or sports bikes typically have higher premiums due to their higher cost and repair expenses.

Geographical Location

Usually, the third-party bike insurance premium is decided by the IRDAI. But insurance providers assess the risk associated with the location where the vehicle is used. Cities with higher traffic congestion and a higher incidence of accidents typically see higher premiums.

Security Features

The security features also impact the bike insurance premium. If vehicle owners have installed anti-theft devices, such as GPS trackers, it reduces the risk of potential theft. Generally, insurance providers reward such behaviour by lowering the premium.

No Claim Bonus (NCB)

Another factor that affects the third-party bike insurance premium is the no-claim bonus. It is a reward offered by insurance providers for claim-free years, which can result in premium cost reductions of up to 50%. It promotes safe riding behaviour.

Third-party bike insurance premium in India is predominantly determined by the engine capacity (cc) of the two-wheeler, with fixed premium slabs defined by IRDAI. For example, bikes with lower cc engines generally have lower premiums, while higher cc engines have higher premiums.

Besides engine size, the calculation also considers personal accident cover for the owner-driver and additional liability for pillion riders, if included. Here is the pre-decided slab for third-party bike insurance premiums.

Premium Rates of Third-Party Bike Insurance

Premium Rates for Long-Term Third-Party For New Two-Wheeler Owners

Disclaimer: Premiums are subject to change based on factors such as the insured vehicle, location, and policyholder details. Please refer to the insurance company’s terms and conditions for exact premium calculations.

Also Read: Bike Insurance Premium Calculator

Buying a third-party bike insurance plan is simple with TATA AIG. Here is the breakdown of the steps for buying a two-wheeler insurance plan.

Step 1: Go to the TATA AIG Website

Visit the TATA AIG website and click on the “Personal” section. Under the “Motor Insurance" section, click on the “Bike Insurance" Plan.

Step 2: Enter the Vehicle Details

Enter the bike details, such as vehicle registration number, and click on the “Get Price” button to know about the different bike insurance plans.

Step 3: Select Third-Party Bike Insurance

Different bike insurance plans will appear. Select third-party bike insurance plans and fill in your personal details, including your name and contact number.

Step 4: Review Policy Coverage

Once all personal and bike details are filled, carefully review the policy coverage details. Check the sum insured, exclusions,, and terms to ensure the plan meets your requirements before finalising.

Step 5: Make a Payment

After confirming the policy details, proceed to make the payment using available options, such as credit/debit card, net banking, wallets, or UPI. Save the payment receipt for future reference.

Step 6: Get Policy Documents

Once the payment is made, you will receive the policy documents instantly at your registered email address.

To claim the third-party bike insurance with TATA AIG, below are the steps you need to follow.

Filing A Claim As A Policyholder

• Step 1: Report the accident to the police and file an FIR if required.
• Step 2: Call TATA AIG’s representative immediately at 022 6489 8282 to inform them about the accident.
• Step 3: Gather all necessary documents, such as FIR, bike registration, driver’s licence, and medical bills if applicable.
• Step 4: Provide all documents to the representative for claim processing. A representative will coordinate with the third party and settle the claim in accordance with the policy terms.

Filing A Claim As A Claimant Legal Representative

• Step 1: Inform the policyholder about the accident and share your contact details, vehicle information, and the time and place of the accident.
• Step 2: Collect evidence, such as photos of the accident scene, vehicle damage, and injuries. Also, note down the contacts of any witnesses.
• Step 3: Contact TATA AIG’s claim helpline to report the accident and start your claim. Please provide your details, along with information about the policyholder and the accident.
• Step 4: Assist with the investigation by cooperating with the assigned surveyor or investigator and providing any necessary documents or information.
• Step 5: After the investigation and approval, TATA AIG will settle your claim and pay the amount to which you are eligible.

To file a third-party bike insurance claim, having the correct documents ready is crucial for smooth and timely processing. Here is the list of documents policyholders need to provide.

• Copy of the valid third-party bike insurance policy.
• A duly filled and signed claim form from the insurer.
• FIR report filed with the police immediately after the accident, mandatory for all third-party claims.
• Copy of the rider’s valid driving licence.
• Copy of the bike’s registration certificate for ownership verification.
• Detailed assessment or estimate from the garage or authorised service centre.
• Final receipts and invoices will be issued after the repair work is completed.
• In cases of third-party injury, death, or property damage, copies of the official police reports or investigation details are required.
• Photographs of the accident scene, damaged vehicles, and witness statements, if available.

Third-party bike insurance is a legal necessity and an affordable way to protect yourself from financial liabilities arising from injuries or damages caused to others in an accident. While it does not cover damage to your own bike, this mandatory coverage safeguards your legal compliance and helps avoid hefty penalties.

We at TATA AIG offer a long-term third-party bike insurance plan that comes with a 3-year and 5-year range. You have the flexibility to lock premiums and simplify renewals with our insurance plans. Not only this, but you can also purchase our other plans, such as own-damage and comprehensive bike insurance for enhanced vehicle coverage.

With an easy online purchase option, you can buy bike insurance in just a couple of minutes. Furthermore, with access to network garages, a no-claim bonus discount, and a high claim settlement ratio, we ensure comprehensive coverage for our policyholders. With this in mind, secure your bike with our cost-effective third-party bike insurance plans now!

Also Read: Comprehensive Bike Insurance vs Third Party Bike Insurance