Third-Party Bike Insurance

In India, having at least a third-party bike insurance policy is mandatory for all two-wheeler owners. A 3rd party bike insurance policy covers the expenses or costs incurred because of injuries or damages caused to a third party’s property by the insured bike.

Since this is a mandatory policy, all motor vehicle owners must have this to avoid a hefty fine of ₹ 2,000 and/or imprisonment of three months. The Motor Laws of India ensure all two-wheelers are insured when they take out their vehicle to ride on public roads.

How Does a Third-Party Bike Insurance Work?

As the name suggests, third-party bike insurance covers the insured bike owner’s liability towards any third-party losses in a road accident. In the event of third-party death or property damage, compensation is limited up to ₹ 7.5 lakh, depending upon factors such as the third party’s age, occupation, income, and status.

However, remember, a third-party bike insurance policy does not cover any damages caused to the insured bike itself.

Let’s understand the working of a third-party bike policy with the help of an example.