What is Third Party Bike Insurance Policy?
A third party bike insurance policy is a type of insurance plan which insures a bike owner against all kinds of third party liabilities which may arise due to an unfortunate event like a road accident or collision involving the insured’s bike. The Indian Motor Tariff 2002 mandates every bike owner to have at least a third party bike cover. New bike owners are compulsorily required to have a long-term bike insurance policy valid for 5 years, others bike owners are free to choose the validity of the insurance cover.
As per the 2019 traffic rules, riding a bike without having at least a third party insurance policy is punishable by a fine of Rs. 2,000 and/or imprisonment of up to 3 months for the first offence.
What All is Covered Under a Third Party Bike Insurance?
- Bodily injuries sustained by third party; the amount of compensation is decided by a court of law.
- Death of a third party; the compensation amount is provided by a court of law.
- Third party property damage up to Rs. 7.5 lakh
- Expenses incurred during the court trial
Insurer’s Share In Compensation In Case of Injury/Death of Third Party
Compensation Liability of Insurer
Bodily injury, loss of one limb or one eye sight
Loss of both the limbs or both eye sights
What Is Not Covered Under Third Party Bike Insurance Policy?
- Bodily injuries sustained by the policyholder and co-passengers of the insured's car. To insure oneself, the bike owner needs to purchase a personal accident (PA) cover. The PA cover is mandatory, however, it is the choice of the bike owner whether to purchase it with the insurance cover or separately.
- Own damages sustained by the insured's bike. For this, a bike owner can purchase either a comprehensive bike insurance policy or a standalone own damage bike insurance policy.
Third Party Bike Insurance Policy Premium Rates
The premium rates for one-year third party bike insurance policy for the year 2019 as declared by IRDAI are as follows:
Not above 75cc
Above 75 cc but not above 150 cc
Above 150 cc but not above 350 cc
Above 350 cc
Disclaimer: This article is issued in 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.