As per the Motor Vehicles Act, 1988, every vehicle on Indian roads needs third-party insurance. If you are riding a bike, then the minimum cover you need is long-term two-wheeler insurance with a third-party cover, to stay on the right side of the law.
If you do not have this minimum coverage, you can be fined ₹2000 or face imprisonment for up to 3 months. Many bike riders try to scrape by without having this insurance cover, but it is pretty beneficial.
In this article, we will talk more about third-party bike insurance and how it can benefit you.
What is Third-party Motorcycle Insurance?
Motorcycle accidents are very frequent in India. According to some statistics, two-wheelers are 3 times more likely to be in an accident. There is also the fact that two-wheelers do not have the same protection as a car, and the need for protection becomes even more crucial.
Third-party motorcycle insurance, in simple terms, protects the insured against any liabilities that may arise due to an accident or collision on the road where a third party (i.e. another driver) is involved. The third party could also be a property that has sustained damage due to the accident.
There are two situations in which you can claim third-party bike insurance.
- Situation 1: The person who is the owner or occupant of the third-party two-wheeler vehicle (not a hired driver) suffers damage or injuries (even death) due to an accident. In case of death, the liability is unlimited.
- Situation 2: The accident causes damage to any government property or any property apart from the insurance owner’s vehicle gets damaged. In case of property damage, liability is limited.
It is also important to understand the chain of events in which third-party insurance cover becomes invalid. This can happen if:
- if the accident occurs outside of the geographical purveyance of the insurance provider.
- if the two-wheeler is being driven by any other person other than the owner of the insurance and the vehicle, or the driver
What Are The Main Features Of Third-party Two-wheeler Insurance?
Below are the important features of the two-wheeler bike insurance cover:
- Third-party insurance premium starts at a minimum of INR 538*
- The Personal Accident covers, if applicable, can be as high as INR 15 Lakhs
- The cover will provide for third-party property damage, personal accident cover, and third-party liability
- The third-party insurance will, however, not cover contractual liabilities, irresponsible driver behaviour, vehicle depreciation, war and nuclear risks, and non-road accidents
What are the Benefits of Third-party Bike Insurance?
The primary reason why anyone should get third-party insurance cover is that it helps you in times of accidents or collisions which can occur on the road. The gist of two-wheeler third-party insurance benefits is that if ever you get into an on-road accident with another driver, and you are at fault, then you will have the insurance company helping you in paying for the damages that you have caused to the other party.
Two-wheeler Third-party Insurance Cover: Frequently Asked Questions
- Is third-party insurance necessary for bikes?
Yes! It is mandated by law that every vehicle should have this insurance coverage. Not having this can cause you fines and even imprisonment if you are caught in a road accident without this cover.
- Is third-party insurance better?
Third-party insurance will ensure you have the law on your side. You will also have insurance coverage in case of any on-road accidents. However, this cover alone will not give you protection against theft or damages by natural calamities. Nor will it cover its own damages. Hence, while third-party insurance is the minimum you can have, you can add to it and get comprehensive two-wheeler bike insurance.
- Who will get benefits from third-party insurance?
The beneficiary, in this case, will be the third party or the person other than the insurance owner involved in the accident, or has sustained damages.