5 Advantages of Having Long-term Third Party Bike Insurance

As per reports, there are more than 18 crore motor vehicles plying on Indian roads. Only 6 crore vehicle owners (one-third of the vehicles) have purchased third-party insurance cover.  And, nearly one lakh people lose their lives every year succumbing to road accidents. And most of the road accident victims do not get compensation because more than two-thirds of the vehicle owners do not have 3rd party insurance cover.

Earlier, third-party insurance premium was paid for a year that was renewed every year the. As per the Supreme Court’s recommendation, it was announced by the apex court keeping in view the figures of road accidents on roads.

The revised rules are aimed to ensure compensation for the victims of the road accidents and all the motor insurance companies should look at it from human point-of view and avoid looking at it from commercial point of view.

5 Advantages of Buying Third Party Bike Insurance Policies

Third party two-wheeler insurance will only cover damage caused by the insured vehicle to another party. It will not pay for any damages that are caused to the insured two-wheeler. The policy is usually cheaper in comparison to a comprehensive bike insurance plan. Apart from this there are various other benefits that a third-party insurance policy offers the following benefits:

Completing the Legal Compulsion

Third party insurance for two-wheelers is mandatory in India. As per the new rules and regulations, starting from September 2018, all new two-wheeler buyers will have to shell out more premiums for long-term third party insurance. The tenure for long-term cover for two-wheelers is 5 years.

Provides Legal and Financial Assistance

A third-party insurance policy takes care of your financial and legal compulsions that may arise from an accident, collision or death. The immediate beneficiary is a third-person instead of the insured and the insurer.

Ensures Peace of Mind

With long-term third party insurance policy in place you know that you are covered in case there is an accident or road emergency that completely ruins your financial situation. Instead of worrying about unanticipated expenses, you can easily recuperate.

Easy to Procure

You can easily buy third-party bike insurance online as well as offline. Moreover, it is quite easy to compare different insurance plans online and buy the one that works the best for you. You can checkout different third-party two-wheeler insurance plans from top insurance providers.

New buyers would have three options to choose from - Buy a long-term cover, a bundled cover, or a standalone third-party cover.

No Hassle of Renewing Every Year

It includes third-party cover for 3 years and own damage cover for 3 years.  This insurance cover will provide both third-party cover and own damage risk cover for a period of three or five years.

This is a suitable option for those who want to pay the premium in one-go. However, it is not possible to switch to another insurer in the next year.  The cost of premium is too high and also there is more outflow in the first year.

The only thing that a third-party bike insurance policy lacks is that it does not cover damages caused to you and your vehicle. And you cannot get roadside assistance, zero depreciation cover, and similar benefits. That is why a comprehensive two-wheeler insurance policy is recommended over a third-party liability only policy.

How Much Does a Long-term third party Two Wheeler Insurance Cost?

The rates are listed below:

Two-Wheeler Engine Capacity

Premium Rates

Up to 75 CC

INR 482

Between 75-150 CC

INR 752

Between 150-350 CC

INR 1193

More than 350 CC

INR 2323

The Changing Marketplace

While purchasing a bike, many people buy an insurance policy from the manufacturer’s itself. The bike sellers may force customers to buy insurance from them. And ultimately, they will end up paying more. If you do not want to opt for this variant and are being pressurized by the bike salesman to do so, then you must know that you are under no compulsion to buy it.

 The new rules would see manufacturers aggressively buying insurance at a higher cost in comparison to the open market.  The new rules and guidelines might also be used by showroom owners and bike dealers for misguiding the customers to buy overpriced insurance plans mandatorily from the showroom itself. The new order might be used as a tool to control the market.  Thus, making it a disadvantageous situation for the customers. Most of the OEM driven dealerships would mean that the dealers will start recommending policies of insurance providers who provide them higher commissions.

What You Should Do?

With the introduction of long-term third party insurance covers, it is now more important to make an informed purchase. Buyers should compare different insurance plans from different insurers before zeroing down on one. Because the cost that they would be required to pay now would be much higher than what it was earlier.

In a nutshell

Along with the purchase, it is now more important to make an informed decision. You can ask the dealer to provide you with a separate quotation for the insurance and the vehicle. You can also go online and compare different quotes from all the available motor insurance companies and make an informed decision. It will help you make some savings even with the new rule increasing the total cost of the premium for multi-year policies.

You May Also Like
  • Renew Your Two-Wheeler Break-in Insurance Policy at PolicyBazaar
    Renew Your Two-Wheeler Break-in Insurance Policy at PolicyBazaar

    Owners of two-wheelers have been getting a good night’s sleep as far as their vehicle’s insurance is concerned, thanks to the two-wheeler online break-in policy. This service allows all the owners to get their expire...

    read more
  • Lost Your Two Wheeler Insurance Documents? Here Is What You Need To Do
    Lost Your Two Wheeler Insurance Documents? Here Is What You Need To Do

    A bike insurance policy is one of the important documents required for claim settlement. You won’t be able to make a claim unless you have your bike insurance policy document. In case you have lost your bike insurance ...

    read more
  • Best Two Wheeler Insurance Plans in India
    Best Two Wheeler Insurance Plans in India

    When it comes to choosing the best two wheeler insurance plans, we’re sure you have heard enough from different bike insurers about the benefits and coverage offered by their respective insurance plans. This creates a ...

    read more
  • A Complete Guide to Third Party Two-Wheeler Insurance
    A Complete Guide to Third Party Two-Wheeler Insurance

    As a rule stipulated by the Indian Motor Vehicles Act, 1988, it is mandatory for anyone riding a two-wheeler motor vehicle to have at least a valid third party two-wheeler insurance policy. Failing to follow comply with ...

    read more
  • Consequences Of Not Buying A Two-Wheeler Insurance
    Consequences Of Not Buying A Two-Wheeler Insurance

    “Uninsured Bike Looks Great in Garage Not On Roads” According to IRDA, 75% of two-wheelers plying on Indian road either have no insurance or their insurance has lapsed. While there are instances when one genuinely f...

    read more