What third-party insurance means to your two-wheeler?

Find out why third-party two-wheeler insurance is important and how to claim it.

What third-party insurance means to your two-wheeler

Zipping around on your flashy two-wheeler can be fun, but not without a bike insurance. Not only will you be pulled up by the cops for riding without insurance, but it is also not safe for you or others on the road. Two-wheeler third-party insurance is a mandatory requirement under the Motor Vehicles Act. 

While a comprehensive insurance plan protects you and your two-wheeler from accident or theft, third-party insurance protects others. In case the insured causes any injury or damage to a third party while riding, third-party insurance protects the interest of the aggrieved party. 

What third-party two-wheelers insurance covers

Third-party insurance protects the insured person from any legal liability due to actions involving the insured vehicle. It could be accidental death or injury caused by the insured person to a third party, or damage of property caused while using the insured vehicle. To know more about third party insurance in detail, read this piece - Claiming compensation under third-party motor insurance. 

Related: All you need to know about Third Party Liability in car insurance

Different scenarios and claims process of third party insurance for two-wheeler

A third-party claim begins with filing an FIR and getting a charge sheet. Then a motor claims lawyer files a case in the Motor Accident Claims Tribunal on behalf of the claimant. This court decides the liability. But thereafter, it can be one of many possible scenarios.

  • If the third party, say Mr X, only has a third-party cover. In such a scenario, he will have to establish the other party’s fault in the court to get any compensation. 

However, if Mr X has a comprehensive cover, he can opt for one of the following:

  • Claim from his insurer under ‘own damage’.
  • File and fight a case for third-party damages from the first party and their insurer.
  • Request own insurer to subrogate the case and fight for the other party’s third-party insurance, on his behalf. Subrogation right can be given by Mr X to his insurer after the insurer reimburses him for the losses. With this right, the insurer can recover the claim, paid to the victim, from the other party’s insurer.
  • If both the parties have comprehensive insurance cover, generally they both cover their respective vehicles without one making a subsequent claim on the other. This is like a gentlemen’s agreement among insurers in India.

Related: IRDAI withdraws long-term insurance packages; will bring down car, two-wheeler cost

Last words

Whenever the possibility of a third-party claim arises, it is important to keep photographic evidence of the accident, details of the damaging and damaged vehicle, and contact details of witnesses, if any. The insurance company should also be informed about the accident.

While one can easily purchase third-party insurance online for two-wheelers, it is sparingly used by the involved parties. The claim process involves legal proceedings that require time, effort, and money. Its use is seen more in case of physical injuries or cases of death. Nonetheless, third-party two-wheeler insurance is important if you wish to legally ride your two-wheeler in public spaces. List of things to do and consider before you buy a two wheeler in India. 


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