If you own a two-wheeler, having at least a third party bike insurance is mandatory by law under section 146 of the Motor Vehicles Act, 1988. While buying a two wheeler insurance is compulsory, it can be dangerous to ride your bike otherwise. Injury or damage to third party persons or property during an accident can not only result in financial losses but may also lead to legal liabilities or even loss of life. A Third Party Insurance also known as Liability Only Insurance is the most basic form of vehicle insurance that covers all the financial losses suffered by a third party in the event of an accident caused by the insured two-wheeler. The costs arising from legal liabilities will also be covered by the insurance company. However, being the most basic form of motor insurance, a third party bike insurance only provides insurance protection to the owner or the bike. In a nutshell, a third party two wheeler insurance is nothing but a basic risk cover.
Instead of a basic risk cover, the smart thing to have for your bike is a comprehensive plan which offers financial coverage against third party legal liability as well as financial protection against loss caused to the two wheeler on account of natural or man-made calamities. With a two wheeler insurance, you get such wide-ranging benefits.
What Is Covered Under Third Party Two-Wheeler Insurance?
Death or bodily injury to the third party –
In case a third party individual suffers an injury due to an accident caused by your bike, the insurance company shall pay for the cost of treatment involved. And in case of death or physical disabilities caused due to the accident, the injured individual can claim for the loss of income if he/she is not in a position to resume work.
Third party property damage –
When an accident occurs, it is quite likely there would be some third party property damage as well. According to the Insurance Regulatory and Development Authority, third-party damages are covered up to a sum of Rs. 1 lakh.
Death of the owner/rider of the insured bike –
If you don’t happen to survive an accident, your dependents will be eligible to claim compensation for the sudden income loss.
Permanent total disability of the insured vehicle owner/ driver –
If you happen to sustain permanent total disability during an accident that lends you unable to work, you will be eligible to claim a certain compensation. However, the compensation will depend on the degree of disability.
Exclusions under third-party two-wheeler insurance
Like all insurance policies, third-party bike insurance policies are also subject to certain exclusions which will not be covered by the insurance company. The exclusions under bike insurance are mentioned below:-
Damage caused to your own two wheeler
Accidental damage, loss or liability resulting outside the prescribed geographical area
Any damages caused directly or indirectly by ionizing radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste.
Any accidental loss or damage caused by or contributed due to nuclear weapons.
Any accidental loss or damage arising out of or in connection with the Invasion by foreign enemies, hostilities or Warlike operations (whether before or after the declaration of war), Civil War, Mutiny Rebellion, Military or usurped power.
Damage or loss caused outside the designated geographical area in the insurance policy.
Claims arising out of any Contractual Liability.
The accidental losses incurred if the vehicle was being used otherwise than in accordance with the law such as speeding, riding someone else’s bike, under the influence of alcohol etc.
Advantages of Third Party Two-Wheeler Insurance
By taking up a third party two wheeler insurance, you can enjoy the following advantages:-
You will be protected against legal obligations arising out of damage to the third party. This third party can be either be a person or property.
Third party two-wheeler insurance is quite economical compared to comprehensive bike insurance.
Third party two-wheeler insurance requires less documentation and formalities. This is majorly due to the fact that third-party insurance only covers third parties involved in the accident and not the insured vehicle.
Disadvantages of Third Party Two-Wheeler Insurance
Since third-party bike insurance is the most basic form of motor insurance, it offers only limited coverage. Listed below are the major disadvantages of third-party two-wheeler insurance:-
The biggest disadvantage of third party two-wheeler insurance is that it does not provide coverage to the insured two-wheeler or its owner.
In the event of an accident, the insured is required to bear all the cost incurred due to damage to the vehicle.
There are limited riders available for third-party two-wheeler insurance as compared to the comprehensive insurance.
Third Party Two Wheeler Insurance vs. Comprehensive Coverage
Many policyholders often get confused between the third party and comprehensive two-wheeler insurance. Here’s a simple comparison of the third party and comprehensive two-wheeler insurance:-
Third Party two-wheeler insurance
Comprehensive two-wheeler insurance
Covers only third-party damages
Covers third party as well as own-damage
Relatively higher premiums
Mandatory by Law
Requires less documentation
Requires relatively more documentation
Renewal Procedure of Third Party Two-Wheeler Insurance
Third party insurance renewal is a quick and straightforward process. You need to keep a track of your expiry date and apply for renewal online to avoid attracting inspection charges. The best way to renew a policy is by visiting your chosen insurance provider’s website. Two wheeler insurance renewal online is a simple process with Finserv Markets which helps you to renew an expired policy in just three easy steps. All you need to do is log in with your policy details on the website like your bike insurance policy number, your bike’s registration number, your mobile number and then make the payment online with your Debit Card, Credit Card, or Net Banking details.
Third party two-wheeler insurance or comprehensive two wheeler insurance? It is a question that crosses every bike insurance buyer’s mind. While a third party insurance cover is relatively cheaper, it is also important to note that it offers limited coverage. Therefore, in order to enjoy joyous and carefree long rides on your beloved bike, it’s essential to get it insured with the best possible coverage ie comprehensive bike insurance. With Finserv MARKETS, you can secure top class coverage for your two-wheeler at a reasonable cost. Additionally, you can enjoy exclusive benefits like cashless claim facility across 4000+ garages, quick claim settlement, round-the-clock assistance, and much more. To buy bike insurance online or know more about bike insurance, visit Finserv MARKETS today!
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