A Guide to Third-Party Bike Insurance
As mandated by the Indian Motor Vehicles Act, 1988, every two wheeler running on Indian roads should have compulsory bike insurance. This insurance that is being bought along with the new vehicle from the showroom by every new buyer is basically third-party bike insurance. Understanding what a third party bike insurance is pretty simple and straight forward. A third party insurance plan is a policy that covers the bike owner against any damage caused to a third party during an accident. A third party is anyone who can claim a compensation for injury, losses or damage to their vehicle or property by your two wheeler. This claim by the third party is made to your insurance policy for the damage or losses as a ‘third-party insurance claim’.
Advantages of Third Party Bike Insurance:
- Third party bike insurance policy protects the owner of the two wheeler or the rider against any legal proceduresinitiated due to damage to the third party by the policy owners vehicle. As discussed, the third party is defined as an individual, property or owner of the other vehicle with whom the accident might have took place.
- The premium paid for a third party insurance cover is less compared to the comprehensive insurance cover. Since this is the basic form of bike insurance and does not cover any personal accidental coverage, the premium amounts are comparatively low and hence considered more economical.
- A third party two-wheeler insurance policy can be bought easily since it requires lesser documentation as compared to a comprehensive insurance cover. The reason for the necessity of lesser documentation is that the insurance policy covers the third party only and not the insured and his vehicle.
Coverage of Third Party Bike Insurance:
- The basic coverage provided by a typical Third Party insurance policy is:
- Physical injury to the third party: If in the event of an accident the third party is injured bodily, claims can be made to the insurance company for all medical expenses incurred while treating the injury, compensation for any loss of income brought in by the injury and to a greater extent, compensation for any physical disability arising from an accident with your two wheeler.
- Damage to property of the third party: Third party insurance policy covers any damages made to the third party property. The process is a bit lengthy and tedious compared to the claims made on physical injury. To ascertain the total value of the loss, a surveyor is usually employed who submits a report after careful inspection of the loss. A bike inspection report from the surveyor is also submitted while claiming any compensation from the insurance company.
Liability Limits:
The claim by the third party for any losses or damage is paid (as per the limits stated in the policy) by the insurer of the insured vehicle under the third party two wheeler insurance policy
There is a certain cap of coverage offered by any insurer. That means compensation is paid only for an amount that is capped. Any damage that is ascertained to be more than what the cap is stated in the policy needs to be paid by the policyholder to the third party.
Premium Paid:
The premium rate for a third party two wheeler insurance policy is governed by the regulator and is standard across various insurers. However, the amount to be paid as premium depends on the model of the two-wheeler. Usually bikes with greater CC have a higher premium for the policy.
It is important to note that a third party bike insurance plan is designed solely for the benefit of the third party and claims made by them. It does not cover the actual policy holder in any way. Thus, if a vehicle owner wishes to get additional coverage for self in case of any unfortunate event, comprehensive bike insurance policy would be the best option.
