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 1 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.

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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.

Long Term Third Party Bike Insurance Advantages

Long Term 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.

You may like to Read: Long Term Two Wheeler Insurance

How Much Does a Long Term Third Party Two Wheeler Insurance Cost?

Two Wheeler Engine Capacity

Third Party Premium Rates

Up to 75 CC

INR 482

Between 75-150 CC

INR 752

Between 150-350 CC

INR 1,193

More than 350 CC

INR 2,323

You may like to Read: Multi Year Two Wheeler Insurance

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.

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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.

^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.

#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.

*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)

#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.

*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis