Third party Bike Insurance Calculator – Calculate your insurance
Third-Party Motorcycle Insurance in India
Motorcycles play a vital role in the everyday lives of millions in India. They are one of the cheapest and primary modes of transportation. However, with the rising number of motorcycles on the roads, the chances of accidents and injuries are also higher. So, here comes the need for basic third-party motorcycle insurance.
Our team has developed a user-friendly third-party bike insurance premium calculator to calculate bike insurance premiums in India. This lets you quickly understand and calculate third-party bike insurance costs in India.
Bike Third-Party Insurance Premium Calculator in India: calculate your third-party bike insurance
The Importance of Third-Party Motorcycle Insurance in India
Understanding the significance of third-party insurance is crucial for every motorcycle owner in India. Here’s why it’s so important:
- Legal Compliance: As mentioned earlier, it’s mandatory under Indian law. Riding without this insurance can result in severe penalties, including fines and imprisonment.
- Financial Protection: It provides a shield against potentially crippling financial liabilities that could arise from accidents. Without this coverage, you’d be responsible for compensating third parties for injuries, death, or property damage. This sense of security is invaluable.
- Peace of Mind: Knowing you’re protected against unforeseen liabilities provides a deep understanding of reassurance whenever you hit the road.
- Cost-Effectiveness: Third-party insurance is generally more affordable than comprehensive insurance, making it accessible to a broader range of vehicle owners.
1.What is Third-Party Motorcycle Insurance?
Third-party motorcycle insurance is an insurance policy that provides coverage against liabilities arising from injuries or damages caused to a third party by the insured vehicle. It’s a legal requirement for all vehicle owners in India, as mandated by the Motor Vehicles Act 1988.
“Third-party” refers to any individual or entity other than the insured (first party) and the insurance provider (second party). This includes pedestrians, other drivers, or property owners who may suffer damage or injury from an accident involving the insured vehicle.
2.How Are Third-Party Motorcycle Insurance Premiums Calculated?
The calculation of third-party motorcycle insurance premiums in India follows a standardized approach. This is primarily governed by the Insurance Regulatory and Development Authority of India (IRDAI). Here’s a breakdown of the key factors:
- Engine Capacity: This is the most crucial factor. The IRDAI categorizes motorcycles into engine capacity brackets, each with a predetermined premium rate.
- Annual Revisions: The IRDAI typically increases premium rates annually, usually by 10% to 20%. This is done to take into account risk assessment and inflation changes.
- Fixed Premiums:, Unlike comprehensive insurance, third-party insurance premiums are relatively straightforward and primarily depend on their capacity.
Interestingly, personal factors such as the rider’s age, gender, or riding history do not influence the premium for third-party insurance. This makes the calculation process more transparent and uniform, based solely on the bike’s engine capacity. You can calculate this quickly from our bike insurance premium calculator.
Current Third-Party Motorcycle Insurance Premium Rates (2024)
As of the latest data available in 2024, here are the approximate premium rates for third-party motorcycle insurance in India:
- Up to 75 cc: ₹538
- Between 75 cc and 150 cc: ₹714
- Between 150 cc and 350 cc: ₹1,366
- Above 350 cc: ₹2,804
For new two-wheeler owners, a long-term third-party insurance policy covering five years is mandatory. The premium rates for these long-term policies are:
- Up to 75 cc: ₹2,901
- Between 75 cc and 150 cc: ₹3,851
- Between 150 cc and 350 cc: ₹7,365
- Above 350 cc: ₹15,117
FAQs About Third-Party Motorcycle Insurance in India
1. Why is third-party motorcycle insurance mandatory in India?
It is mandatory in India under the Motor Vehicles Act of 1988. The primary reason is to protect third parties from financial liabilities from accidents caused by the insured vehicle. This ensures that victims of road accidents receive compensation for damages or injuries.
2. What does third-party motorcycle insurance cover?
Third-party motorcycle insurance covers:
- Legal liabilities for injuries or death of a third party
- Damage to third-party property (up to ₹1 lakh)
It’s important to note that it does not cover damages to the insured’s vehicle or personal injuries.
3. How is the premium for third-party motorcycle insurance calculated?
The Insurance Regulatory and Development Authority of India (IRDAI) sets the premium rates for third-party motorcycle insurance. This is primarily based on the bike’s engine capacity.
4. Can I buy or renew third-party motorcycle insurance online?
You can buy or renew third-party motorcycle insurance online through various insurance company websites or mobile apps. The process is typically quick and requires minimal paperwork. This digital approach has made insurance more accessible and convenient for motorcycle owners.
5. What are the penalties for riding without third-party insurance in India?
Riding without third-party insurance is illegal in India and can result in severe penalties. The consequences may include:
- A fine of ₹2,000
- Potential imprisonment for up to 3 months
- Suspension of driving license
These penalties underscore the importance of maintaining valid insurance coverage.
6. Can I transfer my third-party insurance to a new owner if I sell my motorcycle?
Yes, you can transfer the insurance policy to the new owner of the motorcycle. It is essential to transfer the policy to avoid future liabilities. The No Claim Bonus, a discount on the premium for not making any claims, can be retained by the original owner for use on a new vehicle. This transferability ensures continuous coverage and compliance with legal requirements.
7. What are the limitations of third-party motorcycle insurance?
The main limitations of third-party motorcycle insurance include:
- No coverage for damages to the insured’s vehicle
- No personal accident cover for the insured
- No protection against theft or natural calamities
- Limited property damage coverage (up to ₹1 lakh)
A comprehensive insurance policy is recommended for coverage that includes protection for your motorcycle.