Your bike is a reward for the hard work that is invested, and protecting your asset is a necessity. If you own a bike, it is compulsory to have an insurance cover to protect yourself from accidents. However, according to the Motor Vehicles Act, it is a mandate for all vehicles to be armoured & sealed with a minimum of third-party bike insurance.
What is Third-party insurance?
Third-party insurance is a type of insurance that covers damages caused to the third party in an accident. As per the Indian Motor Vehicles Act, third party bike insurance is a mandatory requirement to ride a bike on Indian roads.
A third party bike insurance is required for when you are involved in an accident or collision, where damage occurs to a third party’s vehicle, house or any property . This insurance offers financial assistance to pay for the cost of repairs to the third-party property upto INR 7,50,00. The owner of the bike is liable to pay a hefty fine in absence of third party insurance.
How does Third-Party Insurance work?
If a policyholder meets with an accident that leads to causing damages to the third-party vehicle, then the insurer offers financial assistance to pay for the cost of repairs to the third-party property.
This will help in reducing the financial burden for the policyholder. The major requisite of third-party insurance is that the policyholder must be quick to inform the insurance company about the accident immediately before filing the claim. After the claim is raised, the insurer appoints a surveyor to analyze the damages and verify the estimated cost of repairs. After the verification process, the insurer settles the claim.
Benefits of third party insurance
The significant advantages of buying third party bike insurance for your vehicle are mentioned below:
* Legal Protection & financial assistance – Third-party insurance is neither celebrated by the policyholder nor the insurance company. You might cringe a bit here, but it is beneficial in ways by helping you not empty your pockets in order to cover third-party damages. This insurance cover fully takes care of the financial burden in the event of an accident that causes damages to a third party.
* Provides mental peace – The thought of you not paying for the third-party’s property, is a revealing experience. Of course, who would want to burden themselves with more responsibilities? This insurance plan provides the insured peace of mind in taxing situations that cumulate on huge financial liabilities.
* Easy purchase of policy – Third-party bike insurance policies can be bought easily, without much guidance or counsel. It is easily accessible on the website of the insurance company or can be bought at the branch office. The renewal process can be done without too many complications.
* Affordable insurance plan – Third-party insurance can be afforded by all as the premiums are low. In fact, the premium for third-party liability insurance is a fixed nominal value and is updated on an annual basis by the IRDA.
Inclusions and exclusions in a third party bike insurance policy
It is better to be aware of which policy you are purchasing and what is covered under that policy. Let us look at the inclusions of third party bike insurance.
Inclusions of Third party bike insurance:
1. Medical costs of the third party – In case there is an injury to the other party involved in an accident, then the medical costs incurred till recovery are taken care of by third party bike insurance. When there is a loss of life, compensation is also given.
2. Compensation in case of property damage – In case the damage is to someone’s vehicle, house, or any other property, it is covered under third party insurance. The owner of the said property is given this compensation.
3. Compensation to the owner in case of injuries – Third party insurance protects you from the losses that arise due to injuries or permanent disability. There is compensation in case of an unfortunate loss of life as well.
These inclusions are only valid if the rules are properly followed. Take a look at the instances not covered under this.
Exclusions of Third party bike insurance:
1. Own damage – If there is any damage to the property of the insured then it is not covered.
2. Illegal circumstances – If you are riding the bike without a valid permanent license or under the influence of alcohol, then the insurance cannot be claimed.
3. Add-on covers – Some situations are covered only if you have bought the add-ons.
4. Driving without a valid Driving Licence holder – If you have a learner’s license, then you must be accompanied by a person holding a permanent license.
Looking for a higher safety net for you and your Bike? Choose comprehensive bike insurance for a complete coverage
All types of bike insurance are important in their own way, each one contributes extensive benefits. However, comprehensive bike insurance is regarded as the best one. This provides end-to-end cover and provides coverage for your bike as well as the property of the third party.
If you have a budget to afford it, go with a comprehensive bike insurance policy, it ensures your precious possession is protected against theft, fire, and natural calamities. This is a complete package and if you wish to customize it, you can purchase add-ons as well.