In the event of an unexpected accident, both your bike and third-party property may sustain damage. In order to cover this damage, it is important to buy two-wheeler insurance policy.
According to a report from the General Insurance Council, more than 60% of vehicles in India are uninsured, with two-wheelers being the most affected category. To address this issue, the Supreme Court has mandated that new bike owners must secure a 5-year third-party insurance policy.
Read through to know more about third-party bike insurance meaning and benefits.
What is Third-Party Bike Insurance?
A third-party bike insurance refers to the type of bike insurance policy that safeguards individuals against third-party damages and injuries caused by their bike.
This policy takes care of your legal obligations related to any injuries or even fatalities suffered to third parties and damage inflicted on their property by your insured bike.
Why Do You Need Third-Party Two-Wheeler Insurance?
Accidents can unexpectedly strike at any moment, catching us off guard. These unforeseen events not only take an emotional toll but can also lead to significant financial strain, especially when your bike is at fault.
A third-party bike insurance policy is required in moments like these. However, there are more other third-party bike insurance benefits:
Third-Party Bike Insurance Benefits: Legal Compliance
According to the Motor Vehicle Act of 1998, having at least third-party insurance is a legal requirement for riding your two-wheeler on Indian roads. If you are caught without this essential coverage, you will face a fine of ₹2,000 and possibly even a prison sentence of up to three months.
Should you choose to ignore this law and ride again without obtaining at least third-party insurance, the penalties increase significantly. For repeat offenders, the fine escalates to ₹4,000, along with the potential for up to three months of imprisonment.
Third-Party Bike Insurance Benefits: Financial Assistance
This coverage is designed to ease the burden of steep legal expenses, keeping you financially secure in the event of unexpected accidents.
With highly reliable third-party bike insurance providers like TATA AIG- you receive financial support for legal liabilities related to injuries or fatalities of others. It even covers the damage your bike may cause to their property.
Third-Party Bike Insurance Benefits: Property Damage Coverage
Third-party bike insurance is like a safety net that covers the costs if you accidentally damage someone else’s property while riding your bike, such as their car or a fence. It ensures that you are not left to handle those expenses alone, giving you peace of mind as you ride.
Inclusions and Exclusions of Bike Insurance Online Third-Party
| Inclusions of third-party bike insurance policy | Exclusions of third-party bike insurance policy |
| Covers legal costs for defending against third-party claims. | Does not cover injuries or medical expenses for the owner/rider. |
| Covers legal liability for third-party bodily injury or death caused by your bike. | Excludes theft of the bike or fire damage. |
| May include compensation for accidental death or disability of the owner/rider. | Additional covers like zero depreciation and roadside assistance are not included and must be purchased separately. |
| Covers liability for damage to third-party property (e.g., vehicles, buildings). | Does not cover damages to your own bike; requires comprehensive insurance. |
Claiming Third-Party Two-Wheeler Insurance
As a Policy Holder
Step 1: Lodge an FIR and obtain a chargesheet.
Step 2: Provide your bike insurance policy details to the third party.
Step 3: Capture the damages caused by your bike and collect the contact details of any witnesses.
Step 4: Inform your insurance company as soon as possible, as there is usually a time limit for reporting the accident.
Step 5: Third-party claims are settled in the Motor Accident Claims Tribunal (MACT), and the insurance company will pay the claim amount.
As a Victim
Step 1: Immediately file an FIR detailing the incident and parties involved.
Step 2: Capture the damage to your vehicle in a picture and keep all the medical bills related to your injuries.
Step 3: Obtain contact details from any witnesses, as their statements can support your case.
Step 4: Ask for the insurance information of the other party involved in the accident and notify their insurance company.
Step 5: Consider hiring a motor claims lawyer to help you file a case in the Motor Accident Claims Tribunal.
Step 6: If successful, you will receive compensation from the at-fault party’s insurer, as a settlement amount for property damage and unlimited for injury or death claims.
Conclusion
To wrap this up, investing in third-party bike insurance is an essential move for every rider in India. Not only does it fulfill legal obligations, but it also provides peace of mind knowing that you are protected from unexpected liabilities.
With affordable premiums and easy third-party insurance online purchasing options, securing your ride has never been simpler.
