Benefits of Third-Party Bike Insurance
Updated On Jul 27, 2021
Read this article to get information on the importance of third-party insurance and its benefits.
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The number of two-wheelers on the road have increased largely. This is mainly owing to their economic maintenance as well as compatible usage. Two-wheelers are sleek and easy to ride which makes them handy for escaping traffic as well as for travelling in and around the city. The increase in the number of two-wheelers on the road has also led to the increase in accidents. Thus, it has become imperative to invest in bike insurance to protect yourself from expensive repair bills.
What Is Third-Party Bike Insurance?
Third-party bike insurance is a type of insurance which provides financial assistance to the policyholder to compensate for the loss incurred by the third-party in case of any accident. The government has made it mandatory for all vehicle owners to have a third-party insurance to legally ride their vehicles on road.
Why Do You Need Third-Party Insurance For Your Two-Wheeler?
If you happen to be involved in an accident where you are required to compensate the loss of the third-party financially, you can file an insurance settlement claim to pay for the loss of the third-party. This saves a lot of money that you would have had to spend from your pocket.
The following are the benefits of having a third-party insurance for your two-wheeler-
Property Damages To Third-Party
In case you have met with an accident and there has been damage to the third-party’s vehicle, the insurance company will provide you financial assistance to compensate for the loss of the third-party's vehicle. The insurance company can provide you with up to 1 Lakh depending on the extent of the damage caused.
Covers The Cost Of Any Personal Damage To Third-Party
If you are involved in any accident that has resulted in any personal damage or bodily injury or death of the third party, you can file an insurance claim to compensate for their loss. The insurance company will then pay you the settlement as prescribed by the Motor Vehicle Act. You can thus save a lot of expenses which you would have had to manage from your pockets if you didn't have an insurance policy.
When you choose a third-party insurance, insurance companies offer a variety of add-ons or insurance covers to pick. These facilities will increase the extent of your coverage by including certain other scenarios in the policy. Since third-party insurance compensates only for the loss of the third-party, adding insurance covers for your two-wheeler insurance will help you to get the maximum benefit from your insurance provider. But, consider the fact that your premium will increase with each cover you add to the policy.
Mandatory According To The Law
According to the Motor Vehicle Act, every vehicle owner must have at least a third-party insurance to ply their vehicles legally on road. Not having a third-party insurance can be fined up to Rs. 2,000 and/or imprisonment of up to 3 months. If you want to ride your two-wheeler safely on road without having legal complications, it is best that you invest in a third-party insurance for your prized bike.
Apart from being mandatory to ride legally on the road, third-party insurance premium is also affordable. It will help you overcome the financial burden that is incurred in order to compensate the loss of the third-party in case of any accident. Third-party insurance will offer cover for situations where there is damage to the third-party’s vehicle and you will be held responsible to pay the compensation. Thus, invest in bike insurance and ride safely.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.