A third party two-wheeler insurance policy provides insurance cover in case of damage caused due to accidental injury or death to a third party.
The insurance company compensates such obligations. The compensation is paid as per the court's decision. However, in case of property damage, the third party can claim up to Rs. 1 lakh.
The third party two wheeler insurance is nothing but a cover. In case of any unfortunate event happens, your insurance provider will pay you for legal liabilities.
Why do you need the third party two wheeler insurance?
Section 146 of the Motor Vehicles Act, 1988, makes a third party two wheeler insurance policy mandatory for any vehicle moving on the Indian roads. No vehicle can be driven without a third-party cover. The owner is liable to pay the penalty if he/she drives a vehicle without a valid insurance. Therefore, it is a necessity to have adequate insurance cover to provide financial protection in case any legal liabilities arise from damage to a third-party person or property.
Key Benefits of The Third Party Two Wheeler Insurance
- A third-party bike insurance policy covers liabilities arising due to accidental damages, injury or death to a third party.
- Premiums of this type of insurance policy are comparatively affordable.
- The third party two wheeler insurance offers peace of mind to the policyholder in case of liability arising towards a third party person or property damage.
- Vehicle owners can fulfil legal requirements by carrying a valid third-party insurance policy.
- The buying process is not complicated and requires less paperwork as it doesn't cover own damages.
Inclusions of a third party two wheeler insurance policy
Also known as liability only policy, a third-party bike insurance plan covers the policyholder and the vehicle for the following events:
- Bodily injury or death of third-party person leading to the liability on the policyholder.
- Damage to any third-party property, where the liability is covered up to Rs. 1 lakh.
- Optional Personal accident cover for the policyholder.
- Optional Pillion rider cover on payment on additional nominal premium.
The compensation under a personal accident cover offered with a third party two wheeler insurance works in the following manner:
- In case of death, 100% of the sum insured can be claimed. However, this percentage may vary from one insurer to another.
- 50% of the sum insured can be claimed in case of loss of sight of one eye or loss of one limb.
Exclusions of a third party two wheeler insurance policy
- Any damage to the insured bike/scooter arising out of an accident or a mishap.
- Any damage and liability caused outside the geographical area of the insurance policy.
- A claim raised out of contractual liability.
- Loss or damage incurred due to war, riots, use of nuclear weapons or radioactive contamination.
Long-term third party two wheeler insurance cover
The Supreme Court has made mandatory for all new two wheelers to buy five-year cover as per the regulation passed in July 2018. The provision has been enforced since 1st September 2018 and is applicable for all third party and comprehensive bike insurance policies purchased after 31st August 2018. With this regulation, the owners of new bikes/scooters no longer have to renew their insurance plans every year.
The primary aim behind this regulation is to ensure that every new two-wheeler owner buys at least a third-party insurance, if not comprehensive policy. This rule is primarily directed towards new vehicles that will be on roads for many years so that they at least have a third party two wheeler insurance policy. Some vehicle owners tend to forget or avoid to renew their insurance policy after a few years of purchasing it. Or else, they go for an insurance policy that does not offer adequate cover. This new regulation has been implemented to serve the dual purpose of ensuring safety and financially protect third-parties against injuries and demise caused due to accident.
Top Indian Brands Offering the Third Party Two Wheeler Insurance Plans
Here’s a list of top two wheeler insurance providers in India.
- HDFC ERGO general Insurance
- Bharti AXA general Insurance
- Bajaj Allianz general Insurance
- Reliance General Insurance
- TATA AIG general Insurance
- SBI General Insurance general Insurance
- New India Assurance general Insurance
How to claim the third party two wheeler insurance?
You can claim comprehensive bike insurance with your insurance company immediately in case of an accident. But for third party claim, you are dependent on the compensation offered by the third-party insurance holder as you are the third party in such a case. In the case of a road accident, you need to follow the steps mentioned below:
- Click pictures of the damages
- Collect details of the vehicle that has caused damages
- Look for bystanders and witnesses of the accident
- Inform your insurance company about the incident in case your vehicle is damaged
- File an FIR of the incident
- Register your case with MACTC (Motor Accident Claims Tribunal Court)
- Produce the required details and documents in the court.
- After submission, if your claim turns out to be valid, you will receive compensation from the insured person’s insurance company. A third party two wheeler insurance policy can be bought offline as well as online. However, with the convenience of the internet, people these days prefer buying insurance plans online. It is a quite convenient and cost-effective way of insuring your vehicle. You can purchase an insurance policy by visiting the website of insurance provider, select a plan, provide necessary details and make a payment.
A third party two wheeler insurance policy reduces your mental stress as you will be assured that in case of an accident or mishap you may face, you will be covered. Advantages of purchasing a third party two wheeler insurance policy would hardly be measured against it. It does not only provide financial protection in the hour of need but also helps you to maintain peace of mind at the time of the incident.
Recommended Link: How Can I Claim Third Party Two Wheeler Insurance?