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Third Party Bike Insurance: Price, Premium & Online Quote | Royal Sundaram
Third Party Bike Insurance
We will be covering the following:
- What is third party bike insurance?
- Advantages of having third party insurance
- Third Party Insurance Costing
- How to buy third party insurance for a bike
What is third party bike insurance?
The Motor Vehicles Act, 1988 introduced two-wheeler insurance in India and the Insurance Regulatory Development Authority of India regulates these insurance policies. Among the two types of bike insurance in India, the third-party two-wheeler insurance is the policy that protects owner-drivers against any damages caused to a third party, when the insured person's vehicle is at fault. This cover will pay for any financial liability that arises out of the accident. In India, it is the basic and mandatory bike insurance policy as per the Motor Vehicles Act, 1988.
What does third party bike insurane entail?
If any legal liability cover is caused by the insured bike, a third-party insurance policy covers it. It is a Liability Only Policy and covers all third-party liabilities such as –
- Physical Injury or death of the third party.
- Damage to the property of the third party.
- Third-party policy covers compulsory owner-driver insurance of up to Rs. 15 lakhs.
- Some policies offer an additional pillion rider cover on payment of additional premium.
What are the advantages of having third party bike insurance?
- Third Party Insurance also known as "Act Only" insurance, ensures that the underlying statutory requirement of insurance for a two-wheeler is met. The legal and financial obligations are taken care of. Even though the direct beneficiary is a third party, the third-party insurance secures the owner-driver involved in any mishaps or accidents against a third party.
- Such accidents are traumatic situations that can disrupt the mental peace of the owner. Third-party insurance takes care of the financial payments and gives immediate relief from the stress and helps to cope with the incident.
- The insurance premiums for third-party coverage are economical and affordable to everyone. It is extremely cost-effective.
- Third party insurance requires the least documentation and can be done in minimum steps. As it does not insure the vehicles, it involves lesser checks. Hence, anyone can avail it as per their time and convenience.
- Other policies are somewhat limited to the traditional method of offline checks, applications or renewal. For third-party insurance application and renewal can be quickly done online, any hour of the day, 365 days of the year, and from any location. This makes third-party insurance highly accessible and mobile.
How much does a third-party insurance cost?
A recent directive from the Supreme Court of India has made it mandatory to own a 5-year policy for all two-wheelers brought after 01/09/2018. The policy has to be bought at the time of purchase of the vehicle and failure to do so can attract heavy penalties. IRDAI fixes the third-party premium or the tariff as per the cubic capacity of the vehicle. The premium rates for one-year policy for two-wheelers in 2019 as declared by IRDAI are –
| Two Wheelers | Premium |
| Not above 75cc | Rs. 427 |
| Above 75 cc but not above 150 cc | Rs. 720 |
| Above 150 cc but not above 350 cc | Rs. 985 |
| Above 350 cc | Rs. 2,323 |
The premium will increase depending on add-ons and facilities opted by the customer.
The prices and premiums for renewal of a third-party insurance policy will vary based on the make and model of the vehicle.
How do I buy third party insurance for my bike?
As per the new Supreme Court directive, insurance cover should be compulsorily purchased while buying the new two-wheeler and will be provided by the dealer himself. For renewal of existing policies, just before the expiration of the policy term, you can renew the cover on the web portal of the insurer under the relevant section. The renewal should be done before the expiration date to avoid inspection charges.
- Go to the policy website.
- Input your policy number.
- Select the tenure of the policy and any add-ons, if any.
- Keep payment details ready for completing the payment.
Follow the steps mentioned above and get your desired third-party insurance policy.
Documents Required at the Time of Renewal
- Current policy for reference
- Registration Certificate of the insured two-wheeler vehicle, Make and Model, year of purchase.
- Debit card or Net Banking details.