Third Party
Bike Insurance
Riding a bike on Indian roads comes with a legal requirement: you must have valid third party bike insurance. This cover protects you against the financial liability that may arise if your two-wheeler causes injury, death or property damage to another person.
Unlike comprehensive bike insurance, third party insurance does not cover damage to your own bike. It is designed specifically to cover your legal liability towards third parties and is the minimum motor insurance cover required by law.
If you are looking to buy third party bike insurance or renew an existing policy, understanding what it covers, how its premium is calculated and how it differs from comprehensive insurance can help you choose the right cover for your two-wheeler.
Third party bike insurance is a liability-only motor insurance policy that covers your legal liability when your bike causes injury, death or damage to a third party or their property.
Here, the three parties are:
For example, if your bike is involved in an accident and damages another person's vehicle, the third-party component can cover your legal liability for the resulting property damage, subject to the applicable terms and limits. If the accident causes injury or death to another person, the policy can cover the resulting third-party liability.
Third party bike insurance does not cover damage to your own two-wheeler. For protection against risks such as accidental damage, theft, fire and natural calamities, you need own-damage or comprehensive bike insurance.
The Motor Vehicles Act, 1988 requires motor vehicles using public roads in India to have insurance against third-party risks. This makes third party two wheeler insurance a legal requirement, rather than an optional protection.
The purpose is to ensure that people affected by road accidents have a mechanism through which eligible compensation can be sought for injury, death or property damage caused by an insured vehicle.
Riding without valid third party bike insurance can result in penalties under applicable motor vehicle laws. It can also leave you personally exposed to the financial consequences of a third-party liability arising from an accident.
Suppose you are riding your bike and accidentally collide with another vehicle, causing damage or injury.
The process broadly works as follows:
Third-party claims can involve legal proceedings, including proceedings before the Motor Accident Claims Tribunal (MACT). Universal Sompo advises policyholders to provide accident information and relevant documents and follows an investigation process for third-party claims.
A third party bike insurance policy generally provides cover for your legal liability arising from:
If an accident involving your bike causes bodily injury or death to another person, the policy provides third-party liability cover, subject to applicable law and policy terms.
If your bike causes damage to another person's property, such as their vehicle, the applicable third-party property damage liability can be covered.
Third-party insurance can also cover the insured's legal liability arising from an accident, subject to the terms, conditions and applicable limits of the policy.
At Universal Sompo, third-party two-wheeler insurance provides cover for third-party injury, death and property damage. The insurer currently states that third-party injury or death is covered without a specified monetary limit, while third-party property damage is covered up to ₹1 lakh under its stated product information. Always refer to the applicable policy wording for the exact terms and limits.
Third party insurance is limited to your liability towards others. It does not provide own-damage protection for your bike.
Typically, it does not cover:
If you want protection for your own bike against such risks, you can consider a comprehensive bike insurance policy or a standalone own-damage policy, depending on your requirements.
The key difference between third party and comprehensive bike insurance is the scope of protection.
| Feature | Third Party Bike Insurance | Comprehensive Bike Insurance |
|---|---|---|
| Third-party injury/death liability | Covered | Covered |
| Third-party property damage | Covered, subject to applicable limits | Covered, subject to applicable limits |
| Damage to your own bike | Not covered | Covered, subject to policy terms |
| Theft of your bike | Not covered | Covered, subject to policy terms |
| Fire/natural calamity damage to your bike | Not covered | Covered, subject to policy terms |
| Add-on covers | Generally not available with basic TP cover | Various add-ons may be available |
| Premium | Regulated for the third-party component | Varies based on several factors |
Third party bike insurance can meet your legal requirement if you only need liability cover. Comprehensive insurance may be more suitable if you also want protection for your own bike.
Consider factors such as your bike's age and value, how frequently you ride, where you ride and how much financial risk you are comfortable taking on yourself before choosing a policy.
One of the main advantages of third-party insurance is that its base premium is regulated rather than individually priced by insurers. For conventional two-wheelers, the applicable premium is based on engine capacity.
The currently published base rates are:
| Engine capacity | Annual third-party premium* |
|---|---|
| Up to 75cc | ₹538 |
| Above 75cc to 150cc | ₹714 |
| Above 150cc to 350cc | ₹1,366 |
| Above 350cc | ₹2,804 |
*These are base premium figures currently published for the applicable third-party two-wheeler categories. Applicable taxes and other charges, where relevant, are additional. Rates may be revised through regulatory notifications.
This means the third party bike insurance price for the same engine-capacity category does not typically vary between insurers in the way comprehensive insurance premiums can.
For electric two-wheelers, third-party premiums are based on motor power in kilowatts rather than engine capacity.
If you are buying a new two-wheeler, long-term third-party cover is an important part of the purchase process.
A five-year third-party policy is available for new two-wheelers, helping maintain continuous third-party coverage without requiring annual renewal of the TP component. Universal Sompo also lists a Third Party Two Wheeler Policy – 5 Years among its motor insurance products.
The currently published five-year base premiums for regular two-wheelers are:
| Engine capacity | Five-year TP premium* |
|---|---|
| Up to 75cc | ₹2,901 |
| Above 75cc to 150cc | ₹3,851 |
| Above 150cc to 350cc | ₹7,365 |
| Above 350cc | ₹15,117 |
*Base premium figures; applicable taxes and other charges may apply. Confirm the applicable premium at the time of purchase.
Using a bike without valid third-party insurance can lead to penalties under the Motor Vehicles Act and applicable rules.
More importantly, without valid insurance, you may have to bear the financial consequences of a third-party liability yourself.
Before riding, check that your policy is active and that the details on your policy document match your vehicle and registration information.
Third-party claims are different from claims for repairing your own bike. If an accident involving your bike causes third-party injury, death or property damage, you should:
Inform your insurer as soon as possible.
Report the accident to the police where required.
Collect and preserve relevant documents and evidence.
Provide the insurer with the information and documents requested.
Cooperate with the insurer's investigation.
Follow the applicable legal or MACT claims process.
You can buy third party bike insurance online through Universal Sompo by providing your two-wheeler details and selecting the applicable insurance option.
The process broadly involves:
Go to the two-wheeler insurance section and select the option to buy or renew your policy.
Provide your bike's registration number and other required details. For a new vehicle, you may need to provide the relevant vehicle information instead.
Review the available two-wheeler insurance options and select third-party cover if you only need liability protection.
Check the applicable premium, taxes and policy details before proceeding.
Make the payment online through the available payment options.
Once the transaction is completed, your policy documents can be accessed as per the insurer's process. Universal Sompo provides online purchase and renewal options for two-wheeler insurance.
For third party bike insurance renewal, make sure you renew before your existing policy expires so that you do not have a gap in mandatory coverage.
Third party bike insurance is the minimum insurance cover required to legally ride a two-wheeler on Indian roads. It protects you against covered third-party liabilities arising from injury, death or property damage caused by your bike.
If you also want protection for your own two-wheeler against accidents, theft, fire and other covered risks, consider comprehensive bike insurance instead.
Before buying or renewing, check the coverage, applicable premium, policy terms and exclusions carefully. Universal Sompo offers online two-wheeler insurance purchase and renewal options, helping you maintain the cover required for your bike.
Disclaimer: Insurance coverage, exclusions, limits, premiums and claim procedures are subject to applicable policy terms and conditions, regulatory requirements and changes notified from time to time. Please read the policy wording carefully before purchasing.