5-Year Third Party Vs. 1-Year OD: The Confusion That Leaves New Bike Owners With Zero Repair Coverage After Year 1

You finally get the bike you’ve been planning for months. The first ride home is smooth. You take the longer route on purpose. Every signal stop turns into a quick glance back at your bike, just to admire it again. And then comes bike insurance. The dealer says it’s all sorted - five years covered. You sign, nod and move on because honestly, who wants to read insurance documents on delivery day?

Fast forward a year. A small accident happens. Nothing dramatic. But when you call for a claim, you hear something that makes no sense at first. Your bike repairs are not covered. Your policy is active, but your bike is not protected anymore. And that is where thousands of new bike owners land every single year, stuck between 5-year third party insurance and a 1-year own damage cover that quietly expired.
 

Why Every New Bike Now Comes With A 5-Year Policy?

A few years ago, the rules changed. For all new two-wheelers, third party insurance became mandatory for five years upfront. This was done to make sure riders stayed legally covered and victims of road accidents were protected.

Third party insurance covers damage or injury caused to someone else. Another vehicle, a pedestrian, property on the road. It does not pay a single rupee to fix your own bike. Because of this rule, when you buy a new bike today, you will always see a 5-year third party policy bundled with it. And this is where confusion sneaks in.
 

What Dealers Usually Sell Alongside It?

Along with the 5-year third party policy, dealers usually add 1-year own damage insurance. This part covers your bike if it meets with an accident, catches fire, gets flooded, or is stolen. On the invoice, it looks neat. One long policy. One payment. Problem solved.

But the own damage cover lasts only one year. After that first year ends, the bike still has third party insurance running. But own damage protection quietly disappears.

No alert, no reminder and no warning at the time of purchase.
 

The Common Misunderstanding Among New Bike Owners

Many riders believe that since they paid a large amount upfront, everything is covered for five years. This belief sticks around until something goes wrong. A skid on a wet road, maybe a small crash at a junction or even a bike tipping over and damaging the tank and handle.

That is when the shock hits! The claim gets rejected.

The reason given is simple. Own damage policy expired last year. Now the repair bill is fully yours.
 

What Third Party Insurance Actually Does And Does Not Do?

Third party insurance keeps you legal on Indian roads. It protects you from large legal costs if someone else gets injured or their property gets damaged due to your bike. But it does nothing for:

• Cracked fairings
• Bent forks
• Engine damage
• Scratched fuel tanks
• Electrical issues after waterlogging

In short, it does not protect the bike you ride every day. And once the 1-year own damage policy expires, there is no coverage left for your bike at all.
 

Why Does This Gap Often Go Unnoticed?

There are a few reasons this happens so often.

• First, insurance terms are not explained clearly at the dealership. The focus stays on delivery, accessories and paperwork speed.
• Second, many riders do not receive renewal reminders. The third party policy is still active, so the bike looks insured on paper.
• Third, people assume insurance works like extended warranty. Pay once and forget.

But insurance does not work that way. Own damage cover needs yearly renewal.
 

What Happens After Year 1 If You Do Nothing?

After the first year ends, you are riding with:

• Legal compliance through third party cover
• Zero financial protection for your bike
• Any accident, even a minor one, means full repair cost from your savings.
• If the bike is stolen, there is no payout.
• If floodwater damages the engine, there is no help.

This is one of the most common and costly mistakes new bike owners make.
 

Then, What is the Right Way to Stay Protected After the First Year?

Once your 1-year own damage policy ends, you have two choices.

• One, renew the own damage policy separately every year. This is allowed as long as your third party policy is active.
• Two, shift to a comprehensive policy when renewal comes up. This bundles both third party and own damage in a single yearly plan after the initial term.

Both options work. The key is timing. If you miss renewal and there is a long break, insurers may ask for vehicle inspection. In some cases, premiums go up.
 

Why Many Riders Delay Renewal And Regret It Later

There is a common pattern. People postpone renewal thinking nothing will happen in the short term. Then life gets busy, months pass. Suddenly and unfortunately an accident happens.

Insurance cannot be bought after damage. That delay often turns into a bill running into tens of thousands.

This is where platforms like SMC Insurance step in. Instead of relying on dealer paperwork or scattered reminders, riders can:

• Compare own damage policies from multiple insurers
• See coverage and pricing clearly
• Get renewal reminders before policies expire
• Buy or renew without inspection if done on time

When things go wrong on the road, having proper cover already in place saves more than money; it saves stress.

A Simple Rule To Remember

Think of third party insurance as a legal requirement. Think of own damage insurance as protection for your bike. One keeps you compliant. The other keeps you covered.

Having one without the other leaves you exposed.
 

Summing Up,

If you bought a bike in the last year, check your policy today. Look for the own damage expiry date, not just the third party validity. If your own damage cover has ended or is about to end, renew it.

Insurance only works when it exists before the accident. And that small step can be the difference between riding freely and paying for repairs you never planned for.

FAQs