All you need to know about Third-party Insurance for your bikes
Two-wheeler insurance is a mandatory document that every bike owner must have according to the motor act 1988. It safeguards your bike against all kinds of adverse events on the road.
Getting a Two wheeler insurance is a simple task, as there are many insurance aggregator sites like Fincover, where you can compare policies from different insurers and choose the one that suits your requirement.
There are two types of Bike Insurance that companies offer,
- Third-party Insurance
- Comprehensive Two Wheeler Policy
This post will discuss the coverage aspects of a Third-party two-wheeler insurance policy.
What Is Third-Party Bike Insurance?
Third-Party Bike Insurance is the primary insurance policy the insurers offer their clients. The policy covers the cost of damages incurred to a third party in an accident caused by the insured bike.
It covers all kinds of damages to the third party vehicle, including the death of a third party person, in an accident caused by your bike, along with all the financial obligations caused by legal liabilities.
It is essential to understand that third-party insurance does not provide any financial cover for your bike or injuries sustained by you in an accident. As having a valid third-party bike insurance policy is mandatory even when you don’t use the bike often, it is highly advisable to buy third-party insurance from a reliable insurer.
How Does Two-Wheeler Third Party Insurance Work?
Under a two-wheeler third-party insurance contract, the following roles are defined for each one.
- The first party: the policyholder or the one who owns the bike is the first party
- The second part: The Insurance provider is the third party
- The third party: Any entity, not the first or second party, is categorized as Third Party.
Third-party two-wheeler insurance protects the first party against damages sustained to the third party vehicle or person due to their bike.
If the third-party vehicle is damaged in an accident involving your bike, then the insurance covers the damage cost and the financial liabilities resulting from the damage.
Moreover, if the third party sustains an accident, the insurance covers his medical expenses. Also, it covers the disability or death claims resulting from the injury to the third party person.
Coverage Scope of Third Party Insurance policy
- Damages incurred to the third party vehicle (partial or total).
- Covers the medical expenses for the third-party rider. Even disability claims and death.
- Financial and legal liabilities arising out of damages to a third-party vehicle.
- Personal accident cover of up to Rs. 15 Lakhs.
What’s Not Covered In Third-Party Bike Insurance?
Following is the list of events not covered in the Third Party Insurance,
Own Damages: A third-party insurance cover does not cover damages to the bike of the policyholder
Driving without a License: You will not receive any assistance if you move your bike without a valid license.
Driving Under Influence: The Insurer will not extend their coverage if they find that you have been driving the vehicle under alcohol or drugs.
Beyond Geographical scope of cover: If the accident occurs in an area outside the geographical scope stated in the policy, then the insurer is not liable to pay for the damages.
Wars: In the event of war or any other disputes involving arms and ammunition between countries, the insurer is not obliged to pay for the damages.