India is one of the leading markets when it comes to two-wheelers. Thus, it should not come as a surprise if you have either bought a bike or are planning to buy one soon. There is no denying that a two-wheeler is a quicker mode of transport or a more economical one when you consider a car. There is another important aspect of bike ownership that one must not neglect – Bike insurance policy.
Amendments made to the Motor Vehicles Act of 1988 mandates all bikes to have a valid third party two wheeler insurance policy. In the event that you are caught riding your bike without a valid bike insurance policy, you are looking at hefty fines.
What is Third Party Two Wheeler Insurance?
A third party bike insurance is a simple to understand and an easy-on-your-pockets policy that covers some of the most basic requirements. When you set out to buy a policy, you are labelled as the first party, the insurance company as the second party and anyone else involved as a third-party. As the name hints, it offers coverage for third-party individuals and their property.
In the event of an accident involving third-party individuals or properties, the policy has your back in covering the expenses. This includes paying for the medical expenses of the injured individuals or any damages that the property incurs as a part of the accident. Most insurers do not have a cap when it comes to injuries to individuals. However, there is a cap on expenses related to property damages.
A third party bike insurance is minimal in nature and this translates to the documentation part as well. The policy does not require elongated documentation. This makes sure that you can finish with your documentation at the earliest. In fact, you can buy or renew a policy online within few minutes.
And it is the minimal nature of the third-party bike insurance policy which makes it easy on your pockets as well. The premiums are low when you compare it with a comprehensive plan.
Coverage Of A Third-Party Policy
Now that we know what a third party two wheeler insurance is, being aware of its coverage will be helpful while raising a claim. There are the major benefits of buying a third-party liability policy.
- If due to an accident, your two-wheeler causes some damages to a property, the expenses can hurt you badly. Usually, a third-party policy offers coverage for up to INR 7,50,000 when it comes damages to third-party properties.
- If a third-party individual meets with an accident with your bike and sustains injuries or unfortunately dies, the policy will offer compensation or related medical expenses.
- And as per the Indian Laws, having a third-party policy will offer you legal clearance to ride on the road.
- The policy ensures that you do not have to pay hefty fines if caught by traffic police for not having a bike insurance.
- The policy offers legal assistance in the case of an accident involving third-party individuals or properties.
Even though a third-party policy is a bare-minimum policy, it offers great value for money. If you do not already have a policy, you must get one at the earliest. Buying such a policy is not a one-time activity. It needs to be renewed from time-to-time. An expired policy is of no use as it does not provide any cover. You also have the option of going for long-term bike insurance. This way, you do not have to worry about renewals for at least a period of three years.