When you purchase a two-wheeler, you are mandated by law to purchase a third party bike insurance policy. This policy offers basic coverage against damages to a third-party person or property along with a few more benefits. In this article, we will talk about third-party bike insurance and look at the features that make it useful.
Understanding Third-Party Two-Wheeler Insurance
The Motor Vehicles Act, 1988 mandates all two-wheeler owners to have insurance for a two-wheeler that offers coverage against damages to a third party person or property by the bike. This means that in case your bike has a mishap or an accident and it leads to damage to a third property or person, then you need to have an insurance policy that covers the expenses of the damage caused.
It is illegal to drive a two-wheeler without a third party insurance policy. These bike insurance policies do not cover damages caused to you or your bike. If you want to include them in the policy, then you need to opt for a comprehensive bike insurance policy.
What are Parties in Bike Insurance?
There are three parties in a bike insurance policy:
- First Party: The owner of the bike is the first party. This is the person owning the insured vehicle under the policy.
- Second Party: The insurance provider is known as the second party that provides the coverage
- Third-Party: Any property or person that is not the first or second party is a third party in a bike insurance policy
Hence, when you purchase a third party bike insurance policy, the second party (insurance provider) offers legal and financial protection to the first party (insured) from any damages sustained by a third-party property or person.
Is A Third Party Bike Insurance Policy Useful?
Here are some features of a third-party bike insurance policy that make it useful:
- Coverage from damages to a third-party person
If your bike causes an accident or mishap and results in a third-party person getting injured or dying, then a third-party bike insurance policy offers coverage from the third-party liability. It also offers financial and legal protection against any claims or damages filed by the said third party and/or the members of their family.
- Coverage from damages to a third-party property
If your bike causes an accident or mishap and results in a third-party property getting damaged, then a third-party bike insurance policy offers coverage from the third-party liability. It also offers financial and legal protection against any claims or damages filed by the said third party and/or the members of their family.
- Personal Accident Cover
The IRDAI (Insurance Regulatory and Development Authority of India) has mandated all motor insurance policies include a Personal Accident Cover. With a third-party bike insurance policy, the Personal Accident Cover offers coverage of up to Rs. 15 lakhs from any medical expenses caused due to an accident. It also offers a death benefit to the family of the insured in the event of the death of the insured person. However, this cover is offered by 2 wheeler insurance companies for a premium.
Comprehensive or Third-Party Bike Insurance?
Now you might be wondering is 3rd party insurance is enough for the bike. Before you purchase a bike insurance policy, it is important to understand that a third party policy will offer protection from damage to a third-party person or property only. It does not include damages to your bike or injuries sustained by you. If you want coverage for your bike and self, then you can either opt for an additional own damage cover or a comprehensive bike insurance policy. The premium of a comprehensive policy will depend upon the coverage offered, and the add-on covers chosen by you to customise it as per your needs.
Summing Up
A bike insurance 3rd party policy is mandatory for all two-wheelers in India. It offers protection from damages to a third party person and property caused by the insured bike. While a comprehensive policy offers coverage to the insured and his two-wheeler, too, the premium is higher than a third-party policy. Hence, make sure that you assess your insurance needs and choose the right type of bike insurance policy. Good Luck!
