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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.
Also known as liability only policy, a third-party bike insurance plan covers the policyholder and the vehicle for the following events:
The compensation under a personal accident cover offered with a third party two wheeler insurance works in the following manner:
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.
Here’s a list of top two wheeler insurance providers in India.
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:
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?