3rd Party Bike Insurance – Guide
As soon as you purchase a two-wheeler in India, you need to get insurance coverage for it as well. The Indian law mandates this. While the law states that you need a basic 3rd party bike insurance plan, many people opt for a comprehensive cover as well. The third-party liability bike insurance plan is a basic bike cover that offers complete and well-rounded legal coverage. There are many benefits you get when you invest in a 3rd party bike insurance plan. Take a look at this article to know more about the very handy two wheeler third party insurance policies and how they can benefit you.
Types of bike insurance
As stated, there are two major types of bike insurance plans that are available in India. Here’s a detailed look at both:
- Comprehensive bike insurance plan
First of all, we have comprehensive bike insurance plans which offer an all-around bike insurance cover. It protects you from all third party legal liabilities. Apart from this, a comprehensive plan also covers your own vehicle and covers you, the rider, in case of any injury resulting from an accident. The comprehensive plans are more expensive than the two wheeler insurance third party insurance policies but the scope of cover is larger. If you have a new and expensive bike, you may consider getting this type of motor insurance plan.
- 3rd party bike insurance plan
Third party insurance for bike is a very basic two wheeler insurance policy. As the name suggests, it offers coverage against all third party liability damages. If you happen to cause damage to a third party or his vehicle or his property with your bike, the insurance company will compensate the third party on your behalf. This type of bike insurance is compulsory under the laws of India. Also, these plans are very inexpensive so it becomes easy for you to own them.
- Standalone own damage bike insurance plan
If you have valid third party insurance for bike, you can opt for a standalone own damage policy as well, in order to protect your own vehicle.
Need for two wheeler third party insurance
There are several reasons why you need two wheeler third party insurance. Some of them are:
- To avoid fines
Since a 3rd party bike insurance plan is compulsory, you will be fined if you ride your two wheelers without it. If the traffic cops pull you up and you cannot show the insurance papers, you will be fined heavily as 3rd party bike insurance plan is mandated by the law. The plans are cheap and save you from unnecessary fines and penalties along with the harassment faced.
- To save money
As stated, third party insurance for bike is very cheap. You can get a cover for just a few hundred rupees. In exchange, however, you get huge protection. Any 3rd party liability expense after a road accident can cost thousands of rupees. In the absence of a bike plan, you will have to compensate the third party yourself, which can be economically damaging. Buy the plan by paying a small amount of money and stay covered against a huge liability.
- For peace of mind
Once you are assured of staying safe with the law and also assured of getting compensated for all financial damages, you can ride your bike with a lot of mental peace. This is needed and you can get it simply by investing in a basic 3rd party bike insurance policy.
These are some very logical reasons why you should consider getting third party insurance for bike.
Benefits of a third party bike plan
Now, let us explore the best advantages that you get when you decide to buy third party insurance for bike:
- Inexpensive –
The third-party liability plans are very cost-effective. The premium for a third party bike plan is fixed by the IRDAI and is thus the same across all insurers. Along with this, you can avail a personal accident cover too.
- Easy to get –
The plans can be bought quite easily, as the documentation process is simple and hassle-free. Also, there aren’t too many checks and verifications carried out and you can get the plan instantly.
- Available online –
A huge benefit of the 3rd party two wheeler insurance plans is that you can buy them online. This gives you the opportunity to compare and then buy. Consequently, you easily find the best plan at the best rate. The process to buy the plan is simple, quick and can be done remotely at any time and from any place.
- Standardised coverage –
Since the premium and the coverage is ascertained by the IRDAI, these plans are offered by all insurers and have standardised features and cost.
- Legal liability –
All legal liabilities arising from any third party property or vehicle damage or accidental injury to any third-person from an accident of the bike would be paid by the third-party tribunal provided you have a valid third party 2 wheeler insurance plan.
Go over the features of the two wheeler third party insurance plan very carefully before you make a purchase. Get acquainted with the features and understand the benefits and then buy the plan to ensure you get the maximum value out of it.
Inclusions and exclusions in a 3rd party bike insurance policy
Here is a look at the inclusions and exclusions of the most common 3rd party bike insurance plans available in India currently:
- Damage to third party vehicle –
You will get coverage for any damage caused by your bike to a 3rd party vehicle. If you get involved in a road accident and your bike causes dents, scratches or any major damage to another vehicle, your insurance plan will pay the third party liability to get his vehicle fixed.
- Damage to third party property –
If you ram your bike into the wall of a building or crash into someone’s gate or damage any third party property in any other form, your insurer will compensate the third party for the expenses incurred in getting the property repaired.
- Bodily injury or death of the third party –
If a person(s) gets injured or even dies in an accident involving your two-wheeler, you will have to compensate the third party. In such a case, the insurer of the two wheeler third party insurance plan will pay the compensation on your behalf.
- Legal expenses –
It is not uncommon for people to drag the other party involved in road accidents to court following some major mishap. If you happen to be involved in any such legal tussle, your third party plan will cover the legal charges incurred. This is one of the handiest covers included in a 3rd party bike insurance plan as the legal charges in India are very high and one such bill can leave you poorer by a huge amount of money.
- Compensation for injury or death of the policyholder –
The third party liability bike plan offers protection to you, the rider, as well. The personal accident cover is included in most of the third party liability plans from the leading motor insurance companies in India.
- Damage to own vehicle –
There is no coverage available for damage to your own vehicle in third party insurance for bike. Whether your bike gets damaged in a road accident or due to a natural calamity such as a flood, you can’t expect to get any compensation from your insurer. The same holds true for any fire damage to your vehicle too.
- Damage to own property –
If your own property is damaged in an accident involving your bike, you will not be compensated for the loss by your insurer. This is another major exclusion that you should be aware of before you buy a third party plan.
- Theft of bike –
If the bike is stolen, you will not get compensation to replace it. This cover is available in the comprehensive bike insurance plans but is excluded in the third party liability insurance covers.
- Riders –
Another important point to remember when you buy a third party plan is that you cannot add any riders to your policy. Since a third party plan is a basic bike cover, you cannot attach any add-on covers to it.
These are the main inclusions and exclusions in third party insurance for bike. You should be aware of these so that you can get your claim smoothly when there is a requirement for the same.
As you can clearly see from the points mentioned above, a two wheeler third party insurance plan offers many benefits. One of the biggest and most useful benefits is that the cover is available at a very low cost. This apart, the cover also keeps you legally secured and offers a lot of mental peace. It also helps to protect your finances as you do not need to pay a third party from your own pocket if an accident takes place with your bike. So go ahead and buy the plan and stay protected in multiple ways.