Third-party bike Insurance is the most basic and legally mandatory form of insurance in India, covering damage or injury caused to another person (third party), damage to another vehicle or property, and legal liabilities arising from such incidents. However, it does not cover damages to your bike, which is where comprehensive insurance comes in.
Is third-party Bike Insurance legal in India?
Under the Motor Vehicles Act, 1988, every motor vehicle owner must have at least third-party liability insurance to drive legally. Failing to have this can result in fines up to ₹2,000 or even imprisonment in some cases. So, if you’re ever stopped by traffic police, having a valid third-party insurance policy is enough to avoid penalties as far as legal compliance is concerned.
When traffic police stop a two-wheeler for inspection, they usually check the following documents:
- Driving License
- Registration Certificate (RC)
- Valid Insurance (at least third-party)
- and Pollution Under Control (PUC) Certificate.
As long as your third-party insurance is valid, active (not expired), and covers your current vehicle, you’re good to go in the eyes of the police. But if you have not any comprehensive or third party insurance of your two wheeler than can be fined.
However, third-party insurance has its limitations, such as no coverage for your own vehicle’s damage, no protection against theft or fire, no personal accident coverage unless separately added, and no add-ons like zero depreciation or roadside assistance. This can lead to high out-of-pocket expenses in case of accidents or natural calamities. So, any bike owner needs to have comprehensive two-wheeler insurance for the protection of the rider and bike.
Comprehensive insurance is the smarter choice for peace of mind and broader protection, covering third-party liabilities, your own vehicle damage, theft, fire, natural disasters, and add-ons like zero depreciation and engine protection. It comes at a higher premium but often offers better coverage in return, especially for newer or high-value bikes.
