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What Is Covered Under Third Party Bike Insurance?

Published on July 26, 2019. EST READ TIME: 5 MIN

Got your hands on your first bike? Feeling excited to ride it on the roads? Before you take over, we suggest you should stop unless you have a bike insurance policy in place. The Motor Vehicles Act, 1988 makes it imperative for every vehicle owner to insure his vehicle with a third party insurance cover. So to ensure you legally comply with the said rule, it is necessary that you insure your bike with a third party cover. First, let’s understand what a third party cover is.

What is third party insurance?

A third party insurance policy is a type of general insurance policy that offers you financial coverage coverage in case you cause any damage to third person or property while riding the bike. The premium for Third Party insurance is decided by the IRDA and varies depending on the cubic capacity of the vehicle). Unlike a comprehensive two wheeler cover, a third party policy does not provide coverage for damages caused to your own car and simply covers damages caused to third person or property.

Coverage offered under third party insurance

Third party property damage: Third party property damages worth up to 1 lakh are covered.

Death or bodily injury caused to third party: Medical expenses can be claimed for in case of death or bodily injury caused to third party.

Death of the owner driver or insured bike: Your dependents are eligible to receive compensation in case of your death caused due to an accident.

Disability of the insured: If in case due to an accident, you become permanently or partially disabled, then the insurance company offers you 50%-100% compensation.

What third party insurance does not cover?

Major exclusions are as below: -

  • Cost of damages caused to your own vehicle

  • Cost of damages caused when driving under the influence of drugs or alcohol

  • Damages caused due to war or nuclear risks

  • Vehicle theft

It is always advisable to opt for comprehensive insurance to stay covered against damages caused to your own car as well as third person or property.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process".

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