Two-wheeler riding in India is exciting, convenient and time-saving — but it also comes with road risks. Every bike owner must protect themselves from potential legal and financial liability. That’s why having at least a third-party bike insurance policy is mandatory under the Motor Vehicles Act, 1988.
Third-party insurance doesn’t cover damage to your own bike, but it protects you from paying huge compensation if your bike causes injury, death or property damage to another person.
This guide will help you choose the best third-party bike insurance in India 2026 by explaining coverage, price, benefits, top insurance companies and key buying tips.
What is Third-Party Bike Insurance?
Third-party bike insurance is a mandatory two-wheeler insurance policy that covers legal and financial liability caused to a third person. Example:
- Your bike causes an accident and injures a pedestrian
- Your bike hits another vehicle and damages it
- Your bike damages someone’s wall, shop or any property
In all such cases, the insurance company pays compensation, not you.
Why is Third-Party Bike Insurance Important?
Benefit | Description |
Legally Mandatory | Required to legally ride on Indian roads |
Financial Protection | Saves you from paying huge compensation for third-party damage |
Affordable Premium | Cheaper than a comprehensive policy |
Peace of Mind | Protects you in case of unexpected accidents |
What is NOT Covered Under Third-Party Insurance?
1. Damage to your own bike
2. Theft or fire loss
3. Natural disaster or riots
4. Personal accident (unless added as an extra)
5. Claims if riding drunk or without a license
If you need coverage for your own vehicle, go for a Comprehensive Bike Insurance Plan.
Third-Party Bike Insurance Premium Rates
Premium is fixed by IRDAI and depends on engine capacity (CC). Approx expected rate range based on current market trend:
Engine Capacity | Approx Annual Premium (₹) |
Up to 75 CC | ₹550 – ₹600 |
75 CC – 150 CC | ₹700 – ₹750 |
150 CC – 350 CC | ₹1,350 – ₹1,450 |
Above 350 CC | ₹2,800 – ₹3,000 |
Multi-year policies (3-year / 5-year) may offer discounts and protection from price hikes.
Best Third-Party Bike Insurance Companies
1. ACKO Two-Wheeler Insurance
ACKO is one of the fastest-growing digital-first insurance companies in India. Known for its low-cost premium and instant online purchase system, ACKO focuses heavily on convenience and speed. With a 100% paperless process, users can buy or renew third-party bike insurance in just a few minutes via mobile or laptop — without uploading physical documents.
Key Features
- Instant policy issuance within minutes
- Very affordable premium pricing
- Zero documentation required
- 24×7 online customer support
- Simple claim filing through mobile app
- Perfect for digitally-active young riders
Best For: Riders using daily commuting bikes like Activa, Splendor, Scooty, Pulsar, TVS, Honda etc.
2. Tata AIG Two-Wheeler Insurance
Tata AIG is a trusted brand with strong customer service and fast claim support. It offers flexible long-term third-party plans (3 & 5-year options), helping users avoid yearly renewal. With one of the highest claim settlement efficiency rates, Tata AIG is ideal for those who prefer a reputed and reliable insurer.
Key Features
- 21+ years of experience in insurance
- Wide network for offline assistance
- Long-term third-party plans available
- Fast claim settlement
- Good add-ons like passenger cover & PA cover
Best For: New bike owners who want long-term reliability.
3. HDFC ERGO Two-Wheeler Insurance
HDFC ERGO is known for fast cashless claim settlements and top-rated customer service. With one of the largest service networks across India, it is particularly useful for city riders who require quick support. Their online renewal system and transparent process make it user-friendly.
Key Features
- 13,000+ cashless garages support
- High claim settlement ratio
- Fast and smooth claim processing
- Easy online purchase and renewal
- Trusted corporate brand
Best For: Riders in metro cities (Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, Kolkata)
4. Bajaj Allianz Two-Wheeler Insurance
Bajaj Allianz is highly rated for both claim settlement and customer satisfaction. They offer attractive renewal discounts and strong offline support. Many riders choose Bajaj Allianz for its quick claims tracking system and 24×7 emergency helpline.
Key Features
- Strong claim settlement performance
- Excellent customer care support
- Online + Offline support network
- Add-on options available
- Suitable for daily bike commuters
Best For: Office-going daily riders & long-distance travel riders.
5. New India Assurance
New India Assurance is a Government PSU insurance company, known for trust, affordability and accessibility across small towns and rural areas. It is a strong choice if someone wants a reliable insurance policy without online dependency.
Key Features
- Government-owned public sector insurer
- Cheapest premium for many segments
- Available even in remote locations
- Strong offline service support
- Very reliable & secure
Best For: Rural/tier-2 & tier-3 customers, senior riders & people who prefer offline process.
How to Choose the Best Third-Party Bike Insurance
- Check Claim Settlement Reputation
Fast claim settlement = better support during emergencies
- Check Online Purchase & Renewal Ease
Prefer insurers with mobile app/website options
- Consider Multi-Year Plans
Good for new bike purchase & long-term savings
- Look for Add-on Options (if needed)
- Personal accident cover
- Legal liability for passengers
- Renewal on Time
Never let your policy expire — penalty and legal trouble may apply.
Who Should Buy Only Third-Party Insurance?
Recommended For | Reason |
People with old bikes | Repair value is low |
Low usage or occasional city riders | Cheap and legal compliance |
Those looking for budget protection | Very affordable |
If your bike is new or costly → choose Comprehensive Insurance instead.
FAQs – Best Third-Party Bike Insurance 2026
Q1. Is third-party insurance enough?
Yes, legally it is enough. But it does not protect your own bike.
Q2. Can I switch from one insurer to another?
Yes, during policy renewal.
Q3. Does third-party insurance offer No Claim Bonus (NCB)?
No, NCB applies only to own-damage insurance.
Q4. What if I drive without insurance?
Fine up to ₹2,000 and/or vehicle seizure.
Choosing the best third-party bike insurance in India for 2026 is all about balancing budget, legal compliance and safety. It helps protect you from expensive legal liabilities and ensures stress-free riding. Compare 2-3 insurer quotes, check claim settlement reputation and choose a policy that suits your riding needs.
Quick Recommendation
If you want the cheapest and fastest digital policy → ACKO
If you want a trusted brand with strong support → Tata AIG / HDFC ERGO
If you want offline support & government trust → New India Assurance
