As per a recent official data, a total of 4,64,910 road accident cases are registered in 2017. The average road deaths per year in India in the last decade are 1.36,118. The whooping road fatalities have increased the importance of having your vehicle insured. It not only provides financial shield during an emergency but also ensures quality healthcare without worrying for the finances. And when talking about insurance for two-wheelers, Third Party bike insurance comes to our minds which is the basic insurance cover one must have. It is also mandatory by the Motor Vehicles Act, 1988. Let’s delve into detail:
What is Third Party Insurance for Two Wheeler?
Third Party bike insurance is a policy that offers insurance protection in case of liability arising out of accidental damage, injury or death to a third party. The insurance company bears the liabilities of the insured person. The compensation is based on the court decision; however, in case of property damage, the claimable amount is up to 1 lakh. Death compensation is equal to the policy sum insured.
Why Do You Need Third Party Bike Insurance
As per the Indian Motor Vehicles Act 1988, third-party bike insurance is mandatory in India. No vehicle can be driven without this cover. The owner is liable to pay a considerable penalty if he/she drives a vehicle without insurance. Hence, it is necessary to have adequate insurance coverage to provide needful of financial protection in case of any liability arising from a third party.
Key Benefits of Third Party Two Wheeler Insurance
Advantages of buying third-party bike insurance would hardly be measured. Apart from providing financial protection in the hour of need, it also helps you maintain peace of mind at the time of claim. The key benefits of third party insurance include:
- This policy covers third-party liabilities arising out of accidental damage, injury or death to a third party
- Premiums are comparatively affordable and cheaper
- Offers complete peace of mind in case of any liability arising towards a third party
- By carrying valid third party two wheeler insurance, one can avoid traffic penalties
- The buying process requires less documentation as it doesn’t cover own damage
Inclusions of Third Party Two Wheeler Insurance
Also known as ‘Act Only’ policy, this covers the insured or the vehicle for the following events:
- Death or bodily Injury - An accident leading to crippling injury to a third party can also result in property damage or death as well. In such a case, the injured party is eligible to claim liability expenses or compensation for the loss. The insurer pays the liability amount once set by the Tribunal Court.
- Damage to Property - Third party bike insurance covers the damages to the third party’s vehicle, where the liability can be claimed up to 1 lakh.
- Death of the Owner/Driver - In case of death of the registered owner also called as owner driver, the dependents can claim for the loss and the insurance company compensates the money. This is applicable only if the personal accident component is included in the policy and currently the compensation value is raised up to a sum insured of Rs. 15 lakhs.
The compensation under Third Party motor insurance works in the following manner:
- 100% of the sum insured can be claimed in case of death. However, the percentage may vary on offerings from insurer to insurer in case of damage to body parts
- 50% of the sum insured in case of loss of one limb or sight of one eye
- Up to 1 lakh compensation in case of property damage
*The compensation is subjected to the driver or owner-driver, driving with a valid Driving License or carrying a valid RC.
Exclusions of Third Party Two Wheeler Insurance
The common exclusions of third party bike insurance include:
- Any damage to the insured vehicle arising out of an accident or other perils
- Any damage or liability caused by activities outside the geographical area of the policy
- A claim arising due to a contractual liability
- Loss or damage due to war, warlike situation, use of nuclear weapons or radioactive contamination
Two Wheeler Third Party Insurance Rates: How Much Does it Cost?
The premium or cost of third party insurance for the bike is decided by factoring the engine capacity of the vehicle and it is decided by the IRDA only. However, it keeps change by 10-20% every year. However, a big relief for bike owners that the premiums will not rise by this year, as per the latest announcement released by IRDA. The below rates are applicable with effect from 16 June 2019:
Long-term Third Party Cover for Five Years for New Bike Owners
As per the recent orders from the Supreme Court, all general companies are instructed to offer only long-term third party motor insurance across the country for new bikes. By following the court order, IRDA has directed the insurance companies to offer three-year third party insurance for cars and five-year policy for two-wheelers. That means, going forward every new bike owners have to insure his/her newly bought possession with a five-year third party insurance policy. The change in policy benefits or terms and conditions will be intimated accordingly if any.
Long-term Third Party Bike Insurance - A Road Ahead
Long –term two wheeler insurance can be proved as a positive move as out of the 18 cr. total registered vehicles in India, only 6 cr. are insured. One of the main reasons is many forget to renew the policy on time. The new rule is believed to benefit the entire ecosystem. It will offer price stability as the users need not pay the premiums annually. Most importantly, with this policy, one can avoid the annual hike in premiums as it is set for a period of five years. However, there is a huge difference in the premium earlier and now. It significantly raises the third party bike insurance rate. The below rates are applicable with effect from 28 August 2018:
How to Renew Your Third Party Two wheeler Insurance?
In order to make the renewal process hassle-free every insurance companies offer online renewal of third party bike insurance. However, you can check for third party bike insurance price offered by IRDA. As renewal is the most crucial time to take a call, the insurers expect a timely renewal of insurance policy. In this regard, online renewal appears as the most convenient way of renewing third party bike insurance.
Online Renewal Process:
To renew the third party bike insurance policy online-
- Visit the official website of the insurer
- Go to the online renewal option
- Select the policy to renew
- Check the offered premiums
- Pay the premiums using credit/debit card or net banking
How to Buy Third Party Bike Insurance?
Third Party Bike insurance can be purchased either online or offline. However, with the advent of internet people prefer buying insurance online mostly. Online 3rd party bike insurance is a very convenient and cost-effective way of insuring your bike. It saves your time and money when insurance can be ensured even sitting at the office or at the best comfort of your home. All you need to do is visit the official website of the insurance company, select a plan and buy.
If you don’t want to buy third party insurance online for two wheeler, you can visit the nearest branch of the insurer and approach the concerned officer. He/she will guide you through the insurance plan that meets your requirement. If everything goes well, you can pay the premiums through cash or cheque and buy the policy. Moreover, you can also consult a broker or insurance agent to buy insurance for your two wheeler.
