Understanding First, Second, And Third-Party Coverage In Two-Wheeler Insurance

Understanding First, Second, And Third-Party Coverage In Two-Wheeler Insurance


To ensure optimal protection for your bike, it is crucial to delve into the intricacies of bike insurance, comprehend various terms, and conduct thorough research before deciding. Among the critical terminologies in bike insurance are first-party, second-party, and third-party coverage. Understanding these terms is paramount in selecting your two-wheeler’s most suitable insurance plan.


In bike insurance, the first party refers to the policyholder who pays the premium for comprehensive coverage against incidents like theft, accidental damage, fire, natural and artificial disasters, and total loss. For instance, purchasing two-wheeler insurance for protection against accidental damage designates you as the first party, commonly known as Own Damage cover. Claims are subject to terms and conditions set forth under the motor insurance policy.


The entity providing the insurance coverage in bike insurance is the second party. The insurance provider typically assumes this role. The insurer, or the second party, is responsible for covering claims against the insurance policy, while the first party must pay the insurance premium.


In bike insurance, the term third party pertains to an individual who is neither the policyholder (first party) nor the insurer (second party). Third parties file claims against your insured bike for losses or damages to their property resulting from accidents, illnesses, or even fatalities.

Third-party bike insurance specifically refers to insurance coverage against third-party liabilities. This type of insurance involves all three parties—the insured, the insurer, and the third party. If a third party files a claim against the insured for losses, the insurer provides the insurance benefits.

Also known as a Third-party Liability policy (TP policy), this insurance protects the insured from financial responsibility in case of accidents or damage to others’ property. If your bike causes harm to someone else’s car, third-party bike insurance pays according to the policy’s terms and conditions.

Comparing Comprehensive And Third-Party Bike Insurance

Third-party bike insurance offers minimal coverage and legally requires someone to ride a bike on Indian roads. It protects against third-party liabilities, covering property damage or injuries sustained by others during bike rides. Claims are subject to terms and conditions set forth under the motor insurance policy. *

In contrast, comprehensive two-wheeler insurance provides holistic protection. This insurance encompasses financial coverage for damages to your bike resulting from accidents, fire, theft, natural or artificial disasters, total loss, and third-party liabilities. Furthermore, comprehensive plans allow the option to include valuable supplements, expanding the coverage of the base policy. Make sure you carry out the bike insurance renewal process on time. Claims are subject to terms and conditions set forth under the motor insurance policy.

If you’re wondering how to check your bike insurance status, contact your insurance provider or visit their official website for the most up-to-date information on your policy.

In India, bike owners must have both first-party and third-party insurance. While a Third-party Liability plan is mandatory, the Comprehensive Plan, which includes own damage and third-party coverage, offers broader protection for bike owners.

Standard T&C Apply

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.