Third-party bike insurance is essentially the cover for the insured person against any third-party damages that occur in an accident. For instance, if you happen to get in a bike accident and are found liable to pay for the damages of the concerned party, the insurance company pays these charges for you. However, the damages incurred to you and your bike are not covered.
To help you understand this type of insurance better, here are 5 things to know about third-party bike insurance –
- It is the most basic insurance requirement for motorists – In accordance with the Motor Vehicles Act of 1988, it is illegal to ride a two-wheeler in India without a valid bike insurance cover. Third-party insurance is the most basic and budget-friendly way to meet this requirement of the law.
- What does it cover – A third-party insurance relieves you of the financial burden of having to pay for the damages of the other party. It covers you against the property damages of the third party and also pays the hospital fees or any other such bill charges in an effort to reduce your financial burden while compensating for the third-party’s losses.
- What it does not cover – This insurance does not cover the damages incurred to you and your property in the accident. You would also not be able to make an insurance claim if your bike gets damaged due to natural disasters like earthquake, tsunami, hurricanes, and so on. If you live in an area that is prone to these natural calamities, you might want to take comprehensive bike insurance.
- How can one make an insurance claim – As compared to comprehensive insurance, third-party two-wheeler insurance has a few more steps before one can successfully claim the compensation amount. First, an application for the third-party claim is made by the victim which is followed by filing an FIR that has all the details of the accident. After this, comes the process of filing a case in the Motor Accident Claims Tribunal in the same judicial area in which the accident occurred. Once all the documents including the FIR have been submitted, the court decides on the compensation amount that has to be given to the victim. It is also important to note that there is no limit to the third-party cover in case of an accident that causes death.
- What are its limitations – The biggest limitation of this insurance type is that you cannot opt to include any add-ons in your insurance coverage. This essentially means a lower premium but in exchange, it also cannot help you make the most out of your bike insurance. Still, third party insurance has its share of benefits and is definitely a good way to keep your finances secured while staying legally compliant as a biker.
We hope this article has cleared all your confusions about third-party bike insurance and you are equipped with the right set of information to make the best decision when it comes to insuring your vehicle. Best of Luck!
