Individuals who own a bike in India must have third-party bike insurance, which is mandatory by law. It’s important to take care of bike insurance renewal on time before the policy expires to avoid legal penalties. Individuals who ride their vehicle without third-party motorcycle insurance must pay a fine to the authorities.

Comprehensive two-wheeler insurance is also available online to offer enhanced protection to bikes. Under this, policyholders get third-party or own-damage cover in bike insurance. Due to the vast coverage, the premium of this plan is relatively higher.

However, a two-wheeler third-party insurance plan is very cost-effective, but it provides limited coverage. In this guide, we will learn all about the third-party policy for two-wheelers.

 What is Third-Party Bike Insurance?

A third-party bike insurance policy is a type of mandatory two-wheeler coverage which protects the vehicle against third-party or property damage.

Under this plan, if an insured vehicle has injured a third party or damaged third-party property, then the policy will deal with the financial and legal challenges.

Third-party motorcycle insurance provides compensation to third parties for the damages caused by the insured vehicle.

 What is Covered Under Third-Party Bike Insurance?

A two-wheeler third-party insurance policy covers the following cases:

Third-party injuries and disability: Third-party bike insurance covers bodily injury or disability caused to a third party by the insured vehicle. Under this plan, the compensation amount will cover the victims’ medical bills.

Third-party loss of life: If, in an accident, the third party is badly injured, which leads to death, then the insurance plan will offer compensation to the victim’s family.

Third-party property damage: The plan also covers third-party property damaged by the insured vehicle, such as a car, wall, fence, and more.

Legal liability: The third-party bike insurance plan will also cover the insured person’s legal expenses in case the third party files a case.

Personal accident cover: The plan also offers additional personal accidental coverage to insured vehicle owners. The cover will provide compensation of up to ₹15 lakh in case of accidental death or permanent disability of the owner-driver of the bike.

The compensation amount in case of third-party loss or injuries has no upper limit. It is decided by the court settlement. However, in case of property damage, the upper limit is up to ₹7.5 lakh. However, based on the individual policy type, the compensation amount for property damage may vary.

 What is Not Covered Under Third-Party Bike Insurance?

The third-party insurance policy for bikes does not cover for:

Own Damage: Third-party bike insurance does not cover vehicle damage. If the insured vehicle involved in a third-party accident is also damaged, then the policy will not cover its repair. To get such protection, individuals need to have their own damage or comprehensive bike insurance.

Damage Due to Natural Disaster: Natural disasters, such as floods, earthquakes, etc., also cause damage to vehicles. People residing in such areas are victims of such damages.

But unfortunately, the third-party bike insurance policy does not cover damages to bikes due to natural disasters. These damages are covered under the comprehensive bike insurance policy.

Damage Due to Fire: Fire incidents are also widespread, but if you have a third-party policy for two-wheelers, you cannot claim a compensation amount. This kind of compensation is covered under its own damage and comprehensive bike insurance policy.

Vehicle Theft: Vehicle theft is very common in India, but third-party bike insurance policies do not provide coverage against it. To protect their vehicles against theft, individuals need to purchase their own damage or comprehensive bike insurance policy.

 Third Party Two-Wheeler Insurance Premium Rates

When you buy third-party two-wheeler insurance, always check the premium rates. The IRDAI determines the premium for this policy by factoring in the vehicle engine’s cubic capacity. Various kinds of two-wheelers have different premium rates based on the engine. However, for the electric bikes, the premium rate is decided based on the battery capacity. Below is the breakdown of the third-party motorcycle insurance cost.

 Third Party Insurance Premium Rate for Petrol Bikes

Engine CC of the Bike Premium Rate (1 Year Policy) Premium Rate (5-Year policy)
Under or Equal to 75cc ₹538 ₹2,690
Between 75 cc to 150 cc ₹714 ₹ 3,570
Between 150 cc to 350 cc ₹1366 ₹6,830
Over 350 cc ₹2804 ₹14,020

 Third Party Insurance Premium Rate for Electric Bikes

Bike Battery Capacity Premium Rate (1 Year Policy) Premium Rate (5-Year policy)
Under or Equal to 3 KW ₹457 ₹2,285
Between 3 KW to 7 KW ₹607 ₹3,035
Between 7 KW to 16 KW ₹1161 ₹5,805
Over 16 KW ₹2383 ₹11,915

Note: in an effort to simplify or encourage the insurance plan, IRDAI has released guidelines to offer a 5-year third-party insurance plan to new vehicle owners.


Owning a third-party bike insurance is mandatory if you have a bike. However, if you are looking for enhanced protection, then consider purchasing a standalone own-damage or comprehensive bike insurance policy.

Before buying any 2 wheeler insurance online, always check the policy document and claim settlement process.