Ensure Safety of Others With Third Party Two-Wheeler Insurance
Published On Oct 27, 2020
A third party insurance plan is the most basic coverage for two-wheelers and a mandatory requirement for all bike owners for being able to ride their two-wheeler on Indian roads.
What is Two-Wheeler Third Party Insurance?
A third party insurance policy is a type of bike insurance plan which offers the policyholder protection against all financial liabilities incurred towards a third party in case of a mishap. A third party insurance plan is the most basic coverage for two-wheelers and a mandatory requirement for all bike owners for being able to ride their two-wheeler on Indian roads. Absence of at least a third party two-wheeler plan attracts a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
What is Covered Under a Third Party Two-Wheeler Insurance Plan?
A third party two-wheeler insurance provides coverage for third party bodily injuries, death and property damage caused by insured’s two-wheeler. For property damage, in particular, the policy offers compensation up to Rs. 1 lakh.
Why is Third Party Insurance Important for a Two-Wheeler?
These are factors to keep in mind about third-party insurance policies for two-wheelers:
1. Offers Legal Protection
In the insurance policy, any claims made by a third party in case of an accident with the policyholder’s two-wheeler is covered by the insurance company.
2. Eases Financial Burden
A mishap can happen at any time and the expenses incurred from it can be high. Having a third party insurance cover ensures that the policy takes care of the third parties liabilities, giving the policyholder much more financial stability
3. Peace of Mind
Knowing that you’re ensured from third party liabilities will give you a sense of peace and preparedness to face the uncertainties of life confidently.
What is Covered Under Third Party Cover for Two-Wheelers?
These are the aspects of third party liabilities covered by the insurance policy:
1. Third Party Property Damage
All damages incurred to the third party’s property due to the policyholder’s two-wheeler is covered for up to Rs. 1 lakh.
2. Third Party Bodily Injury or Death
These damages are also covered by the third-party insurance, however, does not have a compensation limit as is the case for property damage.
What is Not Covered Under Third Party Cover for Two-Wheelers?
These are the instances in which no claims are paid for by the third party Insurance:
- Damages caused by manmade or natural disasters.
- Damages due to illegal driving. This includes driving without a license, driving under the influence of alcohol, drugs or intoxicating substances.
- Any form of consequential losses.
- Damage caused due to using the bike beyond its prescribed limitations.
- Damages caused while outside the geographical limits mentioned in the policy.
In an overview, third party insurance policies are mandatory for every two-wheeler without which you are susceptible to punishment. Secondly, having this cover will give you legal protection, ease your expenses in case of a mishap and give you the peace of mind of being protected in case of an unfortunate incident. Thirdly, with insurance companies available online, purchasing an insurance policy has never been easier.
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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.