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Third party bike insurance

Is Third Party Bike Insurance Really Effective?

Third party bike insurance provides coverage to the third party property or person that has suffered a loss due to the insured bike. It doesn't protect the owner or the bike. Third party liability cover can be bought easily with minimum documentation. It is the most economical type of bike insurance. Learn more about third party bike insurance below.

As per the Indian Motor vehicles Act, 1988, it is compulsory for anyone riding a motorbike on Indian roads to have at least a valid third party bike insurance policy. If a person fails to comply with this rule, it could attract a considerable penalty. Before we start exploring various advantages of third party bike insurance, let's understand what third party bike insurance exactly is.

A third party bike insurance policy provides insurance protection in case of liability arising out of accidental damage to third party property, injury, or death to a third-party. The insurance company bears such liabilities of the insured person. The compensation on third-parties death is based on the court's decision; however, in case of property damage, the claimable amount is up to Rs. 1 lakh. In order to understand how effective third party bike insurance is, let's read more about the advantages and disadvantages of it.

Advantages of third party bike insurance

Third party bike insurance, also known as liability only insurance offers the following advantages:

  • Third party bike insurance protects riders against legal obligations arising out of damage or loss to the third party. The third party can be a person or property.
  • Third party bike insurance is economical as compared to comprehensive bike insurance.
  • Getting a third party bike insurance policy is easier and requires less documentation. This is because it covers only the third party and not the insured vehicle or the owner.

Disadvantages of third party bike insurance

As mentioned above, the biggest disadvantage of third party bike insurance is that it does not provide coverage to the bike or the rider. Following are some disadvantages of bike insurance:

  • In case of an accident or mishap, the policyholder is required to bear all the expenses incurred, including damages to the vehicle. The coverage is limited only to the third party, and no compensation is provided to the vehicle owner/policyholder.
  • No optional riders are available along with third party bike insurance as compared to the comprehensive bike insurance.

Third Party Bike Insurance Rates in 2019

  • Two wheeler engine capacity:Premium Amount
  • Not exceeding 75 cc:Rs. 482
  • Exceeding 75 cc but not exceeding 150 cc:Rs. 752
  • Exceeding 150 cc but not exceeding 350 cc:Rs. 1193
  • Exceeding 350 cc:Rs. 2,323

  • IRDAI through its order no. IRDAI/NL/ORD/MOTP/075/03/2020 dated 27th March 2020 has all the insurers to continue with existing rates until further notice.

Coverage offered under third party bike insurance

  • Property damage:A third party bike insurance policy covers damages incurred to the property of the third party if it is caused by your vehicle. As per IRDAI norms, damages to property will be covered up to Rs. 1 lakh under a third party bike insurance policy.

  • Bodily injury or death to the third party:In case your vehicle is responsible for causing physical injuries or death to a third party, the injured person or their nominees can claim medical expenses through your third party bike insurance policy. He/she can also claim compensation for physical disabilities.

  • Permanent total disability of rider or bike owner:In case you drive the insured vehicle and suffer a permanent total disability, you can claim compensation under the personal accidental cover offered under thebike insurance policy. The insurer will pay 100% of the sum insured in case of death, loss of two limbs and sight of one eye, and loss of sight of both eyes or one limb. The insurer will pay 50% of the sum insured in case of loss of sight of one eye or loss of one limb. 100% of the sum insured will be paid out in case of permanent total disablement due to injuries apart from those mentioned above.

  • Death of rider or bike owner:In case you meet with an accident that results in your demise, your dependents can claim compensation under the personal accident cover if opted for.

Some insurance companies offer a personal accident cover as default with a third party cover. Documents required to buy third party bike insurance

  • Current policy reference (in case of renewal)
  • Registration certificate of the vehicle
  • Payment details

How to buy third party bike insurance?

  • A third party bike insurance policy can be bought either online or offline. However, with the availability of the internet, most people prefer buying insurance online. Online third party bike insurance is a convenient and cost-effective way of insuring your two wheelers. It saves you time and money when your vehicle can be insured, even sitting at your home. All you need to do is visit the official website of the insurance provider, choose a plan, and make payment.

  • You can also visit the nearest branch of the insurance company and approach the concerned officer. He/she will guide you through suitable insurance plans that meet your requirements. You can make a payment there and buy the policy. Moreover, you can also consult an insurance broker or agent about buying bike insurance.

Which policy is better, Third party insurance or comprehensive insurance?

A third party liability insurance policy protects you against third party damages as the insurance company takes care of this liability. The insurance provider pays towards the medical expenses and damages incurred to third party or property, whereas a comprehensive policy covers both the third party and the insured vehicle.

The decision to buy a third party or comprehensive insurance policy is entirely dependent on you. However, experts recommend you to buy comprehensive insurance due to its broad coverage offered. Remember, the lower premium should not be the key factor while making a decision considering the number of road accidents and various other factors. Comprehensive bike insurance will provide you coverage against all possible unforeseen expenses and liabilities, including third party coverage.

Recommended Link:Why Third Party Two-Wheeler Insurance?