Third-party bike insurance is a type of insurance policy that offers financial coverage and benefits to cover a third party’s loss or damage caused by an insured bike. According to the Motor Vehicle Act of India, if you own a two-wheeler, you need to have minimum third-party coverage in your bike insurance.
Before you buy third-party bike insurance, you must know its aspects and elements and everything it comprises. Comprehending these policies helps you make better, informed decisions regarding your bike, driving habits and rules and regulations.
So, let us learn about 3rd-party bike insurance coverage, inclusions, exclusions and benefits.
Third-Party Bike Insurance: Coverage
● Third-party Liabilities and Legal Assistance
Multiple parties are affected in case of an accident. If the insured bike leads to an accident that causes injury, disability or death to a third party, bike insurance will offer financial coverage.
It does not matter whether the person was riding a bike or walking on the footpath. If the person was injured, your policy will offer compensation to the affected party.
A third-party bike insurance also provides legal assistance required in case of an accident.
● Third-Party Property Damage
If you drive into a property that belongs to a third party in an accident, the property experiences damage. In this case, this two-wheeler insurance will offer financial compensation for the loss and damage incurred by the third-party property caused by the insured bike.
● Personal Accident Cover
Personal accident cover is additional coverage, also known as an add-on, that offers financial coverage for loss and damage caused to the first person in case of an accident.
The first person here refers to you, the policyholder. This enhances the coverage and offers better satisfaction. This cover offers compensation in case of accidental injury, death or disability to the first party.
Third-Party Bike Insurance: Benefits
● Legal Compliance
In India, every two-wheeler owner must have an insurance policy for bike to better protect it and their financial stability. The primary requirement of this mandate is that you must have third-party coverage. Riding without a policy might lead to legal penalties and punishments. Having third-party bike insurance protects you from these legal complications.
● Convenient Procedures
As compared to other complex policies, 3rd-party bike insurance has pretty straightforward procedures, be it buying, renewing, switching or settling a claim. Especially if you buy from policy providers like Tata AIG, they offer immediate policy issuance and no inspection, further simplifying the process.
● Cost-Efficient and Affordable
The third-party insurance two-wheeler price is low compared to other policy costs. If you buy your policy from well-known and trusted companies, you can enjoy great benefits with even the cheapest 3rd party bike insurance.
● Property Coverage
This type of bike insurance covers damage for all kinds of third-party liabilities, even property damage and loss. Suppose your bike causes damage to a third party’s car or compound; the third-party bike insurance will offer financial reparation to the party at a loss. Had it been an out-of-pocket expense, it would have been very heavy on your wallet. However, the policy covers it for you.
● Injury and Death Coverage
As mentioned above, third-party policy offers reimbursement for financial losses. In case of an injury, the third party will require medical attention. The policy covers the medical expenses for them.
In case of an unfortunate event where your bike causes severe damage to them, disability or death, it is something money cannot fix. But it can help the family a lot. This liability is transferred to the insurance company, saving you a lot of money.
● Range of Inclusions
Numerous situations come under the inclusion list of third-party bike insurance. Your bike insurance offers financial coverage for property damage like vehicles and buildings, liabilities for injuries-death-disability, legal expenses incurred and personal accident cover (if chosen), which provides financial assistance for your well-being and medical expenses.
Third-Party Bike Insurance: Exclusions
- Damage to your own vehicle in case of an accident.
- Total or partial loss of your vehicle (vehicle essential parts) in theft, burglary, fire, natural calamities or any case.
- Third-party bike insurance excludes important add-ons from the policy, like zero-depreciation, roadside assistance, engine protection and others.
Ending Note
Most people choose comprehensive bike insurance for all-encompassing coverage, but even that policy includes third-party coverage. This goes on to prove that third-party bike insurance is a substantial part of owning a two-wheeler vehicle. It not only ensures adherence to legal necessities but also offers financial coverage to the outsider involved in an accident.