What Impact Would a Third-Party Insurance Claim Have on My Bike Insurance?

According to the Motor Vehicles Act of 1988, a third party bike insurance policy is a mandatory cover to buy in India. This means when you buy a bike or any other two-wheeler, you are obligated to purchase at least third-party liability insurance.

However, you must remember that this insurance does not cover any damages to your bike or personal injuries caused to yourself. It is thus different from comprehensive and standalone own-damage policies regarding what is covered and what is not.

In the article below, we shall discuss what third-party insurance typically covers, how a third-party claim affects your bike insurance, and how you can claim third-party insurance for your bike.

So, before you buy bike insurance online, give this article a read.

 How Does Third-Party Insurance Work?

Speaking of bike insurance for third-party, you must understand that the first party is you, the policyholder, the second party is the insurance company, and the third party is any other person other than the first two parties. Hence, this insurance type aims to protect the first party (the policyholder) against financial damages caused to the third party with the insured bike.

This two-wheeler bike insurance covers the damages caused to the third-party vehicle or property or injury sustained by a third-party person. Also, if the third-party files a legal complaint due to the injury or losses caused by the insured bike, this insurance covers the financial burden of the legal consequences.

 What is Covered Under Third-Party Bike Insurance?

It is mandatory to buy third-party two-wheeler insurance in India. This insurance typically covers.

  • Cover for third-party injury or death: In an unfortunate event, if a third-party person gets injured or dies due to an accident involving your bike, the policy provides financial and legal damages or claims filed by the third-party person or their family members.
  • Cover for damage to third-party vehicles or property: Your third-party two-wheeler bike insurance covers financial and legal liabilities arising from damages caused to third-party property or vehicle by the insured bike.
  • Personal Accident Cover: The IRDAI has made Personal Accident Cover mandatory for two-wheeler insurance. It is an essential cover as it may help you if you (the bike owner-driver) get injured in an accident. The cover also includes death benefits to the family of the owner-driver.

 How Does Third-Party Claim Affect Your Insurance?

When you make a third-party bike insurance claim, it will have an impact on your insurance in the following ways:

  • In terms of premium: One factor determining the premium at renewal is the driving or riding history of the owner-driver. Insurance companies may choose to increase the premium if a claim has been raised in the previous year.
  • In terms of NCB: A No Claim Bonus (NCB) is a discount given by the insurance company to the policyholder for every claim-free year. If a third-party bike insurance claim is raised, the discount will be withdrawn.

 How to Raise a Third-Party Bike Insurance Claim for Your Bike?

If you meet with an accident and want to raise a claim, the procedure will defer on whether you only have third-party insurance or a comprehensive plan. Here, we shall consider a situation wherein you only have third-party insurance; in such case, you can only depend on the third-party policy of the damage-causing individual.

Thus, you can raise a third-party bike insurance claim against the bike owner by following the below procedure.

  • File a FIR at the police station where the incident took place.
  • Collect evidence by clicking photographs of the incurred damage.
  • Note the details of the damaged vehicle and check if someone witnessed the accident. Note their contact details, as it can be very beneficial for you.
  • Inform the insurance company and register your claim with the Motor Accident Claims Tribunal Courts of the jurisdiction where the accident occurred.
  • Furnish all the required documents and details to the court. Keep all the documents and evidence secure until the settlement is made.
  • After the claims are in your favour, you will receive the applicable compensation from the damage-causing person’s insurance company.


Here, we discussed two situations, first, where someone damages your bike, and you become the third party, and second when your bike damages a third-party person or property. In the latter case, to reduce the impact of third-party insurance claims on your bike insurance, avoiding making small claims and purchasing comprehensive bike insurance is better.

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