Complete Guide to Third-Party Bike Insurance Cover
As a two-wheeler owner/rider, you are responsible for yours as well as others' safety on the road. If you run into an accident while riding and damage someone's vehicle/property or injures someone, you are liable to pay for the damages/injuries. This is where a third-party or' act only' insurance policy gets into the picture.
As per the Motor Vehicle Act, every bike owner is always required to have a valid third-party bike liability insurance. Riding without valid insurance could lead to hefty fines and even imprisonment. If you are buying a third-party two-wheeler insurance for the first time, you should try to understand what it is and how it works.
What Does 'Third-Party' Mean?
If you own a bike insurance policy, the insurance provider is considered the first party. You, the policyholder, are the second party. As per the Motor Vehicle Act, the third-party can be anyone and anything. It could be a person walking on the road, someone riding a bike or driving a car, a commercial vehicle, pillion rider on a bike or passenger/s in a car, and even people who own any property that may be damaged due to an accident.
What is Third-Party Bike Insurance?
Now that you know what the third-party means, it shouldn't be difficult for you to understand two-wheeler third-party insurance.
Any damage or injury caused to the third-party is covered under a third-party insurance policy. The coverage is as per the terms and conditions, which can vary between policies and insurance providers. The third-party insurance will not cover any injury or damage caused to you or your vehicle.
What Will Third-Party Bike Insurance Cover?
Here is a list of what is covered under third-party bike insurance-
- Bodily injury or death of the third-party.
- Property damage of the third-party.
- The accidental death of the owner/driver of the insured vehicle (only if personal accident component is available in third-party bike insurance coverage)
The compensation amount under third-party insurance can vary depending on the scenarios and insurer selected. Also, the compensation will only be offered by the insurer if you were driving with valid bike insurance, a valid driving license, and were following the basic traffic rules. The insurer has the right to reject your claim otherwise.
What Will Third-Party Bike Insurance Not Cover?
Some of the things that third-party policies generally do not cover are-
- Any damage caused to the vehicle of the policyholder.
- Damages to the vehicle outside the geographical limit of the policy.
- Damage or loss due to reasons like war, radioactive contamination, or nuclear weapons.
What is the Premium of Third Party Bike Insurance?
As third-party bike insurance is mandatory by law, the IRDAI (Insurance Regulatory and Development Authority) regulates the premiums. It mostly depends on the engine capacity of your two-wheeler.
Also, as per the recent Supreme Court order, long-term third-party insurance is now mandatory. This means that if you are first-time insurance buyer, you will have to purchase one with a minimum validity of 5 years. In the past, new owners were allowed to buy 1-year policies.
How to Purchase and Renew Third-Party Bike Insurance?
Based on the insurer you select, you can either purchase the policy offline or online. Third-party insurance online for two-wheeler is known to be hassle-free and quick. To make the purchase online or offline, you must submit a few documents and provide some necessary details.
You must provide details such as your name, age, date of birth, occupation, and gender. Documents like a copy of your driving license and registration certificate will be needed. If you want to renew your policy, the same can be done online as well. You will also need details of your current policy for renewal.
If you are switching to a different insurer, you will also need details of your previous insurer and policy.
Purchasing Third-Party Bike Insurance
Now that you know what third-party bike insurance coverage is, how it works, what it covers, and more, you are now ready to make the purchase. No matter what policy you select, always go with a reputed insurer and check all the inclusions and exclusions of the policy before making the purchase.