Bike Insurance 3rd Party Insurance Cost Calculation

Unfathomable convenience coupled with savings in time makes it a crucial to own a bike in present times. But all is not done once you have bought it. Regulatory norms make it mandatory to have an insurance cover too. When it comes to selecting a two wheeler insurance, third party cover is the minimum that is specified by the Motor Vehicles Act, 1988. Third party bike insurance is not the only insurance policy you can purchase, but it is the most basic coverage that you can opt for. It pays for the financial liabilities due to damages and accidents to a third party i.e., a person outside the contract of insurance. This article elaborates on the benefits of third party cover and how the cost of third party insurance for bike is determined.   For starters, why should you get a two wheeler insurance third party cover to be specific? It is binding on all vehicle owners to buy a motor insurance cover. To legally ride a bike in the country, you must have at least a third party insurance cover. Having this insurance policy safeguards you from liabilities that are unpredictable due to accidents which may cause injury to a person or even property damage. Moreover, not having this third party cover will make you liable to a hefty penalty. Further, the increase in road fatalities has seen this compulsory requirement as a positive move to ensure the safety of others.   Next, we move on to the benefits of buying a third party insurance cover. Apart from being the most affordable two wheeler insurance cover, a third party bike insurance policy protects you from third party liabilities due to accidental damage, injury, or even death. In the event of an injury resulting in hospitalisation, you need not worry about the treatment cost since it is covered by the insurance policy. An unfortunate death is also included in the policy coverage. Further, liabilities due to damage to third-person property is insured up to an amount of ₹7.5 lakhs. Not only third party liabilities, personal accident cover is also an added benefit that is included in this insurance policy.   Now that we know the benefits and why you should buy one, let us understand how the cost of third party insurance for bike is determined. As discussed above, the Motor Vehicles Act of 1988 makes it compulsory for vehicle owners to have a motor insurance policy. Although the Act requires you to buy one, these policies are regulated by the Insurance Regulatory Development Authority of India (IRDAI). Two wheeler third party insurance cost is based solely on the engine displacement of your bike. The regulator, IRDAI, has created slab rates to set the 3rd party bike insurance cost. The only factor that is used to arrive at two wheeler third party insurance cost is the cubic capacity of your bike. These two wheeler 3rd party insurance costs are revised periodically by 10-20%, however in June of 2019, the regulator skipped its revision cycle to continue the same rates in 2020 and now until 2021. Here is a table that states these 3rd party bike insurance cost in 2021:  

Cubic Capacity of the Bike	Two Wheeler Third party Insurance Cost
Engine capacity up to 75 cc	₹ 482
Engine capacity exceeding 75 cc up to 150 cc	₹ 752
Engine capacity exceeding 150 cc up to 350 cc	₹1193
Engine capacity above 350 cc	₹2323

  While you cannot do much about the premium amount since it is based on your bike’s engine capacity, you can select a personal accident cover when buying one. Make the right choice of policy from a preferred insurer and remember to compare the available options for an optimal coverage.