The Effects of Two-Wheel Third-Party Insurance on You
In India, there are two types of bike insurance plans – third party bike insurance and comprehensive two-wheeler insurance. The Motor Vehicles Act 1988 makes it mandatory for all two-wheelers to have a third-party policy for two-wheelers. If you are found driving without an active two-wheeler bike insurance plan, then you will be liable to pay a fine and even face imprisonment. In this article, we will talk about bike insurance third-party plans and look at the benefits they offer.
What are Third-party Bike Insurance Plans?
Third-party bike insurance plans are designed to offer protection from damages to a third-party person or property to a bike owner. If your bike causes an accident that results in a third-party property getting damaged, a third-party person getting injured, or the death of such a person, then the bike owner is legally liable to manage the costs of repair, cost of treatment in case of injury, and even pay compensation as determined by the court. When you buy third-party two-wheeler insurance, the insurer takes care of all such costs.
In 2018, the Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for all new bikes to have third-party liability coverage for five years plus one year of own-damage cover. Being a long term two wheeler insurance plan, a five-year bike insurance policy offers premium benefits to bike owners while keeping them worry-free for five years.
What is Covered in Third-party Bike Insurance?
Here is the coverage of a third-party bike insurance policy:
- Damage to a third-party property due to an accident involving the insured bike
- Damage to a third-party vehicle due to an accident involving the insured bike
- Injury or death of a third-party person
What is Not Covered in Third-party Bike Insurance?
Here are the exclusions of a third-party two-wheeler insurance policy:
- No coverage for any damage to the insured vehicle or belongings of the policyholder
- No coverage if you are found driving without a valid driving licence or driving under the influence of alcohol
Benefits of Third-party Bike Insurance
Financial protection is one of the biggest benefits of third-party bike insurance. If you are riding your bike and hit a pedestrian, then you will have to provide compensation to the pedestrian. Also, if you hit another bike, then you will have to compensate for damages to the bike and injuries to the biker. If your bike gets damaged during such an accident, then you can get compensation from the third-party insurer of the other bike.
How Much Does 3rd-Party Insurance Cost?
The premium of third-party bike insurance is determined by the Insurance Regulatory and Development Authority of India (IRDAI) based on the bike’s engine capacity. Here is the table of the prevalent premium rates:
|Engine Cubic Capacity of the Bike||Third Party Two-Wheeler Insurance Premium|
|Not more than 75cc||₹538|
|More than 75cc but not more than 150cc||₹714|
|More than 150cc but not more than 350cc||₹1,366|
|More than 350cc||₹2,804|
While a third-party bike insurance policy is mandatory in India, it offers many benefits too that can help you manage the financial burden due to accidents and mishaps with ease. If our bike meets with an accident and causes damage to another vehicle, property, or person, then a third-party liability policy can help you manage the expenses associated with it. The insurer takes care of most of such expenses and even reimburses the compensation amount up to certain limits. Make sure that you go through the website of IRDAI to know the latest regulations surrounding third-party policies. Also, research the market and compare providers to buy a policy from a customer-centric provider. Good Luck!