One of the best kinds of vehicles one might own is a two-wheeler. It is affordable, just costs a few thousand and can be bought with an immediate loan. It also gives excellent fuel efficiency. In addition, the vehicle's small size makes it simple to manoeuvre through traffic, even at peak traffic times. But whether you ride a geared bike or a bike without gears, it's imperative that you have bike insurance. Find out what third-party insurance for bikes covers, why it's necessary, and how it works.
What’s a Two-wheeler’s Third-party Insurance
A sort of bike insurance that is required for all bike owners is third-party insurance, often known as liability-only insurance. According to the Motor Vehicles Act of 1988, you are required to get third-party bike insurance if you possess a two-wheeled vehicle. Riding your vehicle without the same is a punishable offense.
In the event that a person is hurt or killed as a result of an accident involving your two-wheeler, the third-party insurance coverage provides you with both financial and legal protection. The insurance plan pays for the injured party's medical costs and even provides compensation in the event that the accident results in death. Additionally, it provides a defence against harm done to the person's possessions or automobile.
What does a Third-party Insurance Cover
Now after knowing what third-party bike insurance is, let’s get familiar with what coverage it offers. As the name implies, a third-party insurance policy is one in which the beneficiary—rather than the policyholder or the insurance provider—is the third party who has been hurt or killed in the event. This policy provides protection against things like:
- Bodily harm sustained by a third person as a result of an accident.
- Third-party death due to an accident.
- Permanent impairments brought on by the accident.
- The harm is done to the other party's property or car as a result of the collision.
Read more - Top Benefits of Third-party Bike Insurance
Why is Having a Third-party Insurance Critical
It is not sufficient to understand the concept of third-party two-wheeler insurance and the coverage it provides. It is crucial to consider why buying this coverage is necessary.
It Provides You with Legal Defence
As you are aware, a roadside collision swiftly develops into a legal issue. Depending on the seriousness of the situation, someone who is caught driving without a valid insurance coverage faces fines of up to INR 2,000 and perhaps possible imprisonment for a term of 3 months or more. The third-party insurance coverage provides some solace in these tough times.
It Provides Monetary Safety
If someone is seriously hurt in an accident, the person who caused the accident is responsible for covering all medical costs, including those associated with hospitalisation and surgery. However, these costs are covered by the insurance company if you have a third-party two-wheeler insurance policy in place. If any damage is done to the injured party's property or car, it is also covered by insurance coverage. As a result, the policyholder need not be concerned about these costs.
You Feel More Secure as a Result
Stress and tension can be greatly increased by any roadside collision. There is constantly a tonne of paperwork to do and formalities to finish. Your insurance company steps in to help you in this situation and provides you with the support you need in such tough circumstances.
Regardless of the circumstance, the policyholder can find solace in the knowledge that the legal and financial issues will be resolved, allowing both the policyholder and the injured party to concentrate on recovering from the accident rather than worrying about how to handle the current situation.
Limitations of Two Wheeler Third Party Insurance Policy
· Covers only a specific geographic location which means the claim will not hold if the accident takes place outside the stated geographical zone.
· If the third party is unable to present their valid driving licence, the insurance provider will not be responsible to cover the damages. In such a scenario, they are completely responsible for all third-party damages, medical assistance, loss compensation and so on.
· If the third party is found to be under the influence of any intoxicating substance, then the claim would be considered invalid.
· Claims arising due to damage or loss caused by war or war-like conditions are not covered.
Natural calamities, man-made calamities and bike theft are not covered.
Read more - Is Third-party Insurance Mandatory for Two-wheeler Owners?
How Much Will a Third-party Insurance Cost You?
The following prices for third-party bike insurance as per the engine capacity are effective as of 1 June 2022:
- The engine of 75cc and less:- INR 538
- The engine of 75-150 cc:- INR 714
- The engine of 150-350 cc:- INR 1366
- The engine of 350 cc INR 2804
You are prepared to get third-party insurance now since you understand how it operates, what it covers and how it limits. No matter which coverage you choose, you should make sure that you select a reputed service provider and read the terms and conditions thoroughly to avoid any challenges afterwards.