Updated on 15 Nov 2025
In India, bikes are considered perfect travel companions, helping navigate the roller-coaster roads and ensuring timely arrivals. However, riding bikes in India is not so easy. The countless potholes and pedestrians' or motorists' carelessness regarding traffic laws put your bike at risk.
If an accident occurs due to unavoidable circumstances, the financial and legal consequences can be overwhelming. This is where third-party bike insurance comes in, offering protection against such liabilities.
What is third-party two-wheeler insurance?
Third-party insurance is a type of two-wheeler insurance that offers coverage only for damage or losses caused to a third person, their vehicle or property. It does not cover your (policyholder’s) own bike. This insurance helps ensure that victims of road accidents or other damages receive proper compensation without lengthy procedures.
The Insurance Regulatory and Development Authority of India (IRDAI) regulates the premiums for such policies. This is why the premium rates for these policies are lower compared to those for broader plans.
How does third-party bike insurance work?
The premium amount of 3rd party insurance depends on the engine capacity of your bike and is fixed by the IRDAI. In the event of an accident involving your bike and a third party, you need to inform the insurance company as soon as possible and file a claim. The insurance company will verify the claim and settle it in accordance with the policy's terms and conditions. The compensation amount will be paid to the third party or their legal representative.
Features of a third-party two-wheeler insurance
Some key features include:
- Fixed premium: The cost of these policies is fixed by IRDAI based on your bike’s engine capacity.
- Online availability: You can quickly purchase or renew the policy online.
- Easy claim process: There is a structured process available through which you can easily file claims.
- Personal accident cover option: It can be combined with a personal accident cover, providing additional protection to the policyholder.
- Nationwide availability: The policy is valid throughout India. So, riders can travel anywhere with compliant coverage.
- Third-party coverage: This insurance primarily covers damages and injuries you might cause to third parties in an accident.
- Cost-effective: While two-wheeler third-party insurance prices vary from company to company, it is usually more affordable than comprehensive coverage.
Reasons to buy third-party bike insurance
Third-party bike insurance is not just a legal requirement in India but also a practical safeguard. It covers financial liability if your bike causes injury, disability or death to another person, or damages their property. These policies are simple to understand, offer legal support in case of disputes and protect savings from unexpected expenses. They also provide peace of mind on the road and reflect responsible ownership, especially for new or occasional riders.
Third-party insurance: Coverage and exclusions
Typically, the following are covered in a third-party insurance policy:
- Injury or death of the third party.
- Damage to the third-party property up to the limits set by law.
- Legal liability that may arise due to an accident involving your bike.
These policies usually exclude the following:
- Damage to your vehicle.
- Wear and tear or mechanical breakdown.
- Driving under the influence of alcohol or drugs.
- Accidents outside India.
Steps to apply for third-party bike insurance
You can apply for a policy through a straightforward process:
- Collect all the necessary documents like registration certificate (RC), driving licence and previous insurance details, if any.
- Visit an authorised insurer’s website or branch.
- Give them your bike details and select a third-party cover.
- Pay the premium online or offline, which is regulated by the IRDAI.
- Now, you can receive the policy document digitally or in print.
Process to renew third-party bike insurance online
You can renew your policy through digital platforms. Follow these steps:
- Log in to your insurer’s website.
- Select the renewal option.
- Verify your bike details.
- Finally, pay the premium.
- Once the transaction is complete, the renewed policy document is issued in its entirety.
Renewing third-party insurance is crucial to avoid policy lapses or penalties.
How to claim third-party bike insurance?
To raise a claim under the policy, here is what to do:
- Inform your insurer immediately after the accident.
- File an FIR at the local police station.
- Submit the required documents to your insurer.
- Attend the hearing. Your claim will be handled through the Motor Accident Claims Tribunal (MACT). It determines the payable compensation.
- After approval, the insurers can pay the third party directly.
Documents required for a third-party bike insurance claim
You may need the following:
- Copy of the FIR
- Registration Certificate of the bike
- The driving licence of the rider
- Insurance policy copy
- Claim form filled with accident details
- Bills or estimates in case of property damage
Conclusion
A third-party two-wheeler insurance is not just a legal requirement but an important protection for all riders. It protects you from unexpected financial expenses if your bike causes harm to others. Although this policy provides limited coverage, it ensures that you can ride legally. For broader coverage, you can always upgrade to comprehensive bike insurance.
While you enjoy your ride with peace of mind, let us help you understand and choose the right third-party bike insurance policy. Get expert advice by filling out the form on this page.
FAQs
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What will happen if I ride without third-party bike insurance?
Riding without valid insurance is illegal in India and can lead to heavy fines, penalties, or even legal action.
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Can third-party bike insurance cover theft of my bike?
No. You can get it covered under comprehensive bike insurance.
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How often do I need to renew third-party bike insurance?
Most policies are renewed annually. However, long-term options are available too.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.