The road is never the same twice. Some days it is very lively in the morning and some days HECTIC! 100s of vehicles passing by and so many shops selling hot vadas and chai. Then comes a sharp voice “Brake! Brake!” A truck swerves too close. Your heart jumps. In that split second, one thought comes: what if something had just happened?
This was what happened to Meera last year. She was heading home when a scooter clipped her mirror. The rider fell, clutching his arm. “Who’s going to pay for this?” he snapped. Meera was left speechless. Hospital bills, bike repairs - too much, too fast. But her third-party bike insurance answered for her.
That’s the best part about this coverage. It just waits in the background, ready to step up when someone else is hurt or their vehicle is damaged. Wouldn’t it feel lighter to ride knowing you’re not alone with those costs? Let’s talk more in the article below.
What is Third-Party Bike Insurance?
Third-party bike insurance is the most basic policy you have to get by law in India. It steps in when your bike causes damage to someone else like their bike, their property, or their body. Your insurer takes care of the bills, so you don’t have to pay out of pocket. All aspects like medical costs, property damage, or legal fees come under its protection. In cases of injury or death, compensation may go as high as what the Motor Accident Claims Tribunal decides. If property is damaged, compensation is usually up to Rs. 1 lakh.
This kind of cover is affordable because it’s limited. The IRDAI decides the premiums each year, based on your bike’s engine size. So bigger bikes cost more to insure.
It checks a lot of boxes like legal requirements, budget-friendly and keeps you legally covered. But it doesn’t help if your own bike gets banged up, stolen, or catches fire.
Types of Bike Insurance
There are three main types, each building on the last:
Third-Party Liability Only This is the basic, mandatory insurance policy. It protects others if your bike causes them harm or damages their property. But remember that it doesn’t cover any damage to your own bike.
Standalone Own-Damage (OD) Bike Cover This covers damage to your bike like accidents, floods, theft, fires, etc. It doesn’t protect third parties, though. You must pair this with third-party cover to ride legally.
Comprehensive Bike Insurance This combines both the above insurance policies. It covers third-party liability, damage to your own bike, theft, natural disasters, and even gives you the option to include add-ons like personal accident cover, zero-depreciation, roadside help, and more.
Understanding Third-Party Bike Insurance in Detail
In India, a third-party insurance bike isn’t an optional insurance policy. It’s the bare minimum you need to legally ride a bike. The Motor Vehicles Act makes it mandatory for every two-wheeler on the road. Skipping this cover can land you in trouble of fines up to Rs. 2,000 and, in some cases, even 3 months of jail time.
But there’s more to this small policy than obedience to the law. It’s a shield against debts that can come from accidents you didn’t mean to cause. If your bike injures someone, or even worse, if someone loses their life, the insurance handles the financial fallout. In fatal cases, the Motor Accident Claims Tribunal (MACT) decides how much it pays.
Key Features of Third-Party Bike Insurance
Let's break down what actually comes with this cover:
1
Medical Costs and Compensation
If someone gets hurt or dies because of your bike, the insurer steps in. It pays for recovery, and if needed, a lump sum to the family. Courts set the amount.
2
Property Damage
You get coverage of up to Rs. 1 lakh for damage to another vehicle, wall, or property.
3
Legal Expenses
Insurance picks up the legal fees linked to third-party claims. That relief alone can save you from heavy financial strain.
4
Personal Accident (PA) Cover (Optional add-on)
You can rely on personal accident cover to protect yourself. Some plans offer up to Rs. 15 lakh for coverage if the rider faces injury, disability, or death.
5
IRDAI-Regulated Premiums
Costs are based on your bike’s engine size and are set by IRDAI. No surprises during renewal.
6
Affordable, Legally Sound
It’s affordable and is ideal for riders who want to stay covered without overspending.
Why Is Third-Party Bike Insurance Important?
Here’s why having this insurance policy matters more than you might think:
Legal Safeguard
Hit the road without it, and you risk penalties, licence issues, or worse. However, third-party insurance keeps you clear of trouble.
Financial Protection
When there is an accident, paying for their injuries and property damage can pile up. With third-party insurance bikes, these burdens land on your insurer, not your wallet.
Some Cases Need Proper Coverage
Accidents involving injury or death are often tied to court rulings and hefty compensation. Without third-party insurance, that could come straight out of your savings.
Low Cost, High Value
Compared to comprehensive plans, premiums are low. Yet, protection against major legal and medical costs makes this a smart buffer. The Economic Times points out that even if compensation is decided slowly, third-party insurance can save you from crippling debts.
Top Third-Party Bike Insurance Plans (2025)
Here’s a clean overview of standout third-party bike insurance in India.
Insurer / Plan
Claim Settlement Ratio
Key Highlights
Garage Network & Support
Tata AIG: 3-Year Third-Party Plan
95.46%
Long-term third-party cover (3 years in one go). Premium locked in, no annual renewal hassle.
7,500+ cashless garages. 24/7 customer support.
ICICI Lombard Third-Party Plan
98.53%
Simple online purchase and renewal. Good track record of quick claims.
9,000+ garages across India. Dedicated claim desk.
Bajaj Allianz Third-Party Plan
97.60%
Known for high claim settlement ratio. Responsive customer care.
6,500+ garages nationwide.
HDFC ERGO Third-Party Policy
99.16%
Digital-first approach. Instant policy documents on purchase.
2,000+ network garages. Mobile app for claims.
New India Assurance Third-Party Plan
92.70%
Public sector insurer. Transparent policy terms.
Wide presence in smaller towns with 1173+ garages.
Disclaimer: The information provided in the above tables is intended for general informational purposes only. The specifics of coverage, claim settlement ratios, and the number of cashless garages may vary over time and across regions. Users are advised to verify the latest details directly with the respective insurance providers or through IRDAI-approved portals before making any purchasing decisions.
Buy/Renew Bike Insurance and Save up to 75%
Coverage of Third-Party Bike Insurance: What It Covers and What It Doesn’t?
Here’s a simple breakdown of what 3rd party bike insurance takes care of, and where it stops short:
What’s Covered?
Here are a few things that will be included in the coverage:
Injury or death of a third party If someone is hurt or killed in an accident involving your bike, the insurer handles the compensation. The value of the compensation is decided by the courts depending on the damage and the situation.
Damage to third-party property Repairs or replacement costs are covered, up to Rs. 1 lakh.
Legal costs If there's a claim from a third party, legal expenses are handled by your insurer.
Personal accident cover Some policies include PA cover for the rider, usually up to a specified limit.
What’s Covered?
Here are a few things that will not be included in the coverage:
Damage to your own bike Any harm your bike suffers isn’t included, be it accident, fire, theft, or disasters.
Mechanical wear, electrical issues, breakdowns Regular wear and tear or breakdowns don’t qualify for coverage.
Illegal use or violations Riding without a license, driving drunk, or other rule-breaking can void your claim.
Incidents beyond covered area If the accident happens outside policy limits or geography, the insurer may turn down the claim.
Third-Party vs Comprehensive Bike Insurance
Both third-party and comprehensive bike insurance serve the same purpose as the core i.e., legal protection on the road. But they’re built very differently. One keeps things minimal, the other casts a wider safety net. Here’s a quick look at how they stack up:
Feature
Third-Party Bike Insurance
Comprehensive Bike Insurance
Legal Requirement
Mandatory under the Motor Vehicles Act.
Not mandatory, but strongly recommended.
Coverage for Others
Covers injury, death, or property damage to a third party.
Covers the same third-party liabilities.
Coverage for Own Bike
Not included.
Includes damage to your own bike due to accident, fire, theft, or natural calamities.
Personal Accident Cover
Available as an add-on, usually up to Rs. 15 lakh.
Available and often bundled with the plan.
Premium Cost
Low, fixed by IRDAI based on engine capacity.
Higher, varies by bike model, age, location, and add-ons.
Best For
Those looking for affordable, legally compliant coverage.
Riders who want broader protection for their own vehicle too.
Why Should You Buy Third-Party Bike Insurance?
Third-party insurance acts as a financial cushion when things go wrong on the road. Imagine getting into an accident where another person is hurt or their vehicle is damaged. Without insurance, every rupee of that compensation would fall on you. With 3rd party cover, the insurer takes over, and the claim amount is paid on your behalf.
It also saves you from penalties. Riding uninsured can lead to fines, licence issues, and even court cases. The law is strict because accidents don’t just impact you, they impact other people on the road too.
And then there’s cost. Third-party premiums are regulated by IRDAI, which means insurers can’t randomly hike prices. The rate is linked to your bike’s engine size, making it a predictable and budget-friendly option.
So even if it doesn’t protect your bike directly, it protects your wallet, your licence, and your peace of mind.
How to Buy Third-Party Bike Insurance Online at SMC?
Buying third-party insurance today is quick and paperless. On SMC’s platform, the process usually takes just a few minutes:
Step 1
Visit the SMC website and head to the two-wheeler insurance section.
Step 2
Enter bike details like the registration number, make, model, and engine size.
Step 3
Provide personal information like name, mobile number and email.
Step 4
Check the policy summary once again and make the payment online.
Step 5
A digital copy is emailed to you right away, and it’s valid from the date mentioned.
Thus it becomes a direct, simple purchase that keeps you compliant with the law.
Buy/Renew Third-Party Bike Insurance & Save Up to 75%
How To File a Third-Party Two-Wheeler Insurance Claim?
Filing a third-party claim can feel overwhelming at first, especially since it often follows an accident. But the process is more structured than most people expect. Here’s how it usually works:
Report the Accident Immediately Inform your insurer as soon as possible. Most companies have a 24x7 helpline or app for quick intimation. Make sure you also inform the local police and register a First Information Report (FIR). For third-party claims, the FIR is essential.
Collect Evidence Photos of the accident site, damage to vehicles, injuries, or property damage help strengthen the claim. If there are witnesses, take down their statements or contact details.
Submit the Claim with your Insurer Share the accident details, FIR copy, and your policy number with the insurer. They’ll guide you on the next steps and provide a claim reference number.
Proceed through the Motor Accident Claims Tribunal (MACT) Unlike own-damage claims, third-party claims are settled through MACT. The third party (injured person or their family) files a case for compensation, and your insurer represents you during the proceedings.
Settlement of the Claim Once the tribunal decides the compensation amount, your insurer pays it directly to the third party. This ensures you aren’t left dealing with heavy out-of-pocket expenses.
Documents Required for the Third-Party Bike Insurance Claim
Your claim can move faster if you have the right documents ready. Typically, insurers ask for the following:
Copy of your two-wheeler insurance policy.
First Information Report (FIR) registered at the local police station.
Claim form filled and signed (usually available on the insurer’s website or app).
Copy of driving licence of the person riding at the time of the accident.
Registration Certificate (RC) of the bike.
Medical reports or post-mortem reports (in case of injury or death claims).
Repair bills or estimates if property damage is involved.
Any photographs, videos, or witness statements related to the accident.
Claim discharge or satisfaction voucher (often required during settlement) with a revenue stamp
Insurers may ask for additional papers depending on the case, but these are the standard ones.
Summing Up
Third-party bike insurance may look like the bare minimum, but it plays a vital role in protecting you from legal and financial trouble. It’s the cover the law makes compulsory, and it exists to protect other people if your bike causes harm or damage. At the same time, it saves you from having to pay compensation out of pocket. If you also want cover for your own bike, you can opt for a comprehensive policy. At the very least, a third-party plan keeps every ride legal and compliant.
The company is wonderful insurance platform providing multiple policies under 1 roof. Experience in purchasing the policy is very good. Experts guides you very well
Annu Gour Annu Pune, April 07, 2025
Easy Renewal process
The process to renew my 2-wheeler policy is indeed very quick and easy. Got it done in just 10 minutes. Thanks.
Bipin Singh Mumbai, April 06, 2025
Quick Response
I thought let me renew my two wheeler policy with SMC and see the experience. The experience was good and simple, the only gap which I felt was that the details of the vehicle did not come up after mentioning the vehicle number.
It depends on your needs. Third-party insurance is enough to meet the legal requirement and cover liability towards others. But it won’t pay for damage, theft, or loss of your own bike. For broader protection, a comprehensive plan is better.
Yes, at renewal, you can upgrade to a comprehensive plan. Some insurers also allow a mid-term switch, but this usually involves cancelling the old policy and buying a new one, sometimes with a bike inspection.
The Insurance Regulatory and Development Authority of India (IRDAI) fixes third-party premiums each year. The premium calculation mainly depends on your bike’s engine capacity. This means that higher engines can mean higher premiums.
No, theft of your bike is not covered under a third-party plan. To cover theft, you need either a comprehensive policy or a standalone own-damage bike cover.
Yes, for new bikes, IRDAI mandates long-term third-party cover for five years. This applies only to the third-party part of the policy. Own-damage cover is usually annual, though it can be combined with third-party at purchase.
Instant Renewal.
No Paperwork.
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