Third party bike insurance is compulsory in India. See what it covers, what it skips and the penalty for riding without it. Get a quote with Insurance Kro.
Yes, third party bike insurance is mandatory in India. The Motor Vehicles Act, 1988 says every vehicle on the road must have at least a third-party policy. It pays for injury, death or property damage you cause to another person, but it does not pay for damage to your own bike.
Let us look at what this policy covers, what it leaves out, and who should think about a stronger plan.
What "third party" means
In insurance, you are the first party and the insurer is the second party. Anyone else who is hurt or whose property is damaged by your bike is the third party. It can be a pedestrian, another rider, a car owner or a shop owner.
A third-party policy protects you from the money claims this person may make against you.
What third party bike insurance covers
The policy usually covers:
- Injury to another person: the liability is unlimited.
- Death of another person: the liability is unlimited.
- Damage to another person's property: the liability is limited to ₹7.5 lakh. This can be a car, a wall, a shop or a pole.
- Owner-driver personal accident cover: a compulsory ₹15 lakh cover for you as the owner-driver, unless you already have a similar cover. It applies to the owner-driver only.
Exact terms can differ, so check your policy wording.
What it does not cover
A third-party policy does not pay for:
- Damage to your own bike from an accident
- Theft of your bike
- Damage from fire, flood or earthquake
- Normal wear and tear or mechanical breakdown
For damage to your own vehicle, you need own damage cover. A policy with both parts is called a comprehensive insurance policy. Our post on what own damage cover means explains this in simple words.
Here is an example of why this matters. Say your bike hits a parked car, and the car owner asks for repair money. Your third-party cover handles that claim up to the limit. But your own bike's scratches and broken parts are your cost, unless you also have own damage cover. Always know which part of the policy pays for what.
Is it really mandatory?
Yes. Riding without valid insurance is an offence. Under the Motor Vehicles (Amendment) Act, 2019:
- First offence: a fine of ₹2,000 and/or up to 3 months in jail.
- Repeat offence: a fine of ₹4,000 and/or up to 3 months in jail.
Beyond the fine, you carry all the risk. If you hurt someone, you may have to pay from your own pocket, and the amount can be very large. See our guide on the penalty for riding without insurance for more.
New bikes and long-term cover
For a new two-wheeler, the third-party cover is usually sold for 5 years at once. This means you do not need to renew the third-party part every year. Own damage is usually taken for 1 year at a time. You can read more in our post on new bike insurance with a 5-year third-party cover, and on our new vehicle insurance page.
Who can choose third-party only?
Some owners pick a third-party only policy because it costs less. This is a personal choice, and it depends on your bike, your riding and your budget. It may suit you if:
- Your bike is quite old and repairs would cost little.
- You ride very rarely and are happy to pay for your own repairs.
- You want the legal minimum and understand the risk.
It may not suit you if your bike is new or high value, if you ride daily in heavy traffic, or if you could not afford a big repair bill or a theft loss. In those cases, comprehensive cover gives you more peace of mind.
How to buy or renew
Buying is quick if your papers are ready. Follow these steps.
- Keep your RC copy and driving licence ready.
- Keep your old policy details if you are renewing.
- Choose third-party only or comprehensive.
- Check the details such as name, bike number and dates.
- Pay and save the policy copy that the insurer sends on email or SMS.
You can use our bike insurance page to see options, or get a quote directly.
Rules and terms can change, and they can differ by insurer. Always read your policy wording, because the policy document is final.
FAQs
Is third party bike insurance enough?
It is enough to meet the law. But it does not pay for your own bike, so many owners choose comprehensive cover.
Does third party insurance cover theft of my bike?
No. Theft of your own bike is covered under own damage, which is part of a comprehensive policy.
How much does third party insurance pay for property damage?
Property damage liability is limited to ₹7.5 lakh. Injury and death liability is unlimited.
Can I add own damage cover later?
Rules differ by insurer, so ask before you buy or renew. If you want own damage cover, it is best to choose a comprehensive policy at the start.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.