Third Party Bike Insurance: Why 3rd Party Bike Insurance is Important?

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Third Party Bike Insurance

Every bike owner is supposed to have a basic third-party insurance on his/her bike to be able to ply freely on the Indian roads. So, the third party insurance is the minimum requirement of insurance that a bike holder must have to be able to drive hassle-free in India.

The third-party insurance covers the policy owner against any financial accountability claimed by a third-party in lieu of the bodily damages caused to the person or damages caused to his/her property in the event of an accident. In this case, the fault lies with the insured person riding the bike. The third-party insurance is a compulsory requirement as per the Motor Act of India.

Let us know more about the two wheeler third party insurance in this blog.

Why a third-party bike insurance necessary?

Having a 3rd party bike insurance is mandatory by law in India. The Motor Vehicles Act of 1988 makes it compulsory for every bike owner to have a third party bike insurance without which no one can ride his/her vehicle on the roads freely. And in case one does, he/she is liable for heavy penalty.

Advantages and Benefits of having a third-party bike insurance

There are numerous benefits of having a third party bike insurance. They are affordable, cover liabilities of third-party damages and more. Take a look at some of the benefits here:

  • Covers third-party damages and/or death
  • Covers for any property damage to third-party
  • Allows affordable accident cover for the insured that can be availed by buying affordable add-ons

What all are covered (inclusions) under third-party bike insurance

Here is the list of inclusions of the third-party insurance:

  • Covers personal injuries/damages caused to third party including death.
  • Covers third party  property damages for up to rupees 1 lakh.
  • Offers coverage for mandatory personal  accident.
  • Offers coverage for pillion add on cover that can be availed by paying an extra premium amount.

What all are not covered (exclusions) under third-party bike insurance

Here’s a list of exclusions under the third-party insurance:

  • It doesn’t cover own damages caused to the insured, rather only the third-party damages.
  • It doesn’t entertain claims if the insured is driving without a license at the time of the accident.
  • It also rejects claim in case the insured is driving under alcoholic influence.
  • It doesn’t offer coverage in conditions where the accidents take place outside its physical scope.
  • Contractual liability claims are also not covered under this plan.
  • This insurance doesn’t include claims on damages caused due to war.

How to renew a 3rd party bike insurance online

Below are the steps to follow for renewing your third-party bike insurance online for two-wheeler:

  • Go to the official portal of the insurance provider
  • Check the form of renewal
  • Submit the registration number of your bike
  • Choose the policy you want to renew
  • Add riders if you want
  • Select the /IDV of your bike
  • Now look at the premiums offered
  • Make payment for the premium using online payment modes
  • You will receive a confirmation message once you get the payments done
  • Your third party insurance is renewed

How to purchase a third-party bike insurance

You can buy the third-party insurance via both online and offline mode. But purchasing a third party insurance online for two wheeler is beneficial as it has many advantages. The third-party insurance is an economical way to insure your bike. Getting it online saves both time and money of the insured along with saving your effort. You can simply visit the official portal of the insured to choose a plan and buy it online.

For those who want to buy it offline can visit the branch office of the insurance provider and take help of the concerned authority in buying the insurance plan. The person at your insurer’s office will guide you through the many plans that are available and that might suit your requirements. If you agree with the terms of the policy, you can buy the policy by paying the amount immediately. Or you can take consultation from a broker to get further detail on plans that will be beneficial for you.

Also Read: Does Two-wheeler Insurance Get Cheaper as Your Bike Gets Older?

How to claim a third-party bike insurance

There are two situations in which you can claim for your third party insurance.

Case 1 – Where you are casualty

Here are the steps to follow:

  • Contact Police and inform them about the mishap
  • Take pictures of the spot to keep as evidence
  • Note details of the vehicle that caused injury to your two-wheeler
  • These include registration number, model of vehicle, color etc.
  • Note down the contact details of witnesses who witnessed the accident
  • Inform your bike insurance company
  • File an FIR at the nearest police station
  • File a report at the Motor Accident Claim Tribunal
  • You must prove the damages received by your bike on the hearing date with proof.
  • If the case turns in your favor, you will receive compensation from the guilty person’s insurance company

Case 2 – Where you are the cause of the casualty

Here’s the steps to follow:

  • Contact Police and inform them about the mishap
  • Take pictures of the spot to keep as evidence
  • Take the contact details of the third party injured person
  • Also, take contact details of any witness of the accident
  • File an FIR at the nearest police station
  • Inform your bike insurance company
  • Submit the concerned documents and details to the insurer
  • File a report at the Motor Accident Claim Tribunal
  • Keep copies of every important document for reference
  • Once the Tribunal fixes your compensation amount, you will receive the claim from your insurer.
  • You might have to pay some portion of the damage to the 3rd party if the compensation amount paid by the insurer is less than what you must pay the victim.

Conclusion

Having a third-party insurance cover is a must for every vehicle owner. It supports the policy owner against any financial loss in case of accident where the third-party claims monetary compensation against his/her bodily injury or damages caused to his/her property. The third-party insurance is a compulsory requirement as per the Motor Vehicles Act, 1988.

However, having a clear idea about the add-ons that you should include and having the necessary comparisons is a must if you want to purchase the best policy suiting your requirement.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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