Is Third-Party Bike Insurance Enough for Your Bike?

What is Third-Party Insurance for Bike?

Third-party bike insurance, also known as liability-only policy, offers financial coverage against any damage or loss caused to the third party by your two-wheeler in a road accident. This means it covers damages to another person's vehicle or property and any injuries or death caused to them.

As per the Motor Vehicle Act 1988, all bike owners must buy at least this third-party liability policy to legally ride in India. If you are riding without a valid bike insurance policy, you may have to pay hefty fines and face legal consequences.

What Third-Party Bike Insurance Covers?

The TP policy provides compensation to the third party or other party in the following cases:

• Bodily Injury/Death to Third Party: It covers medical expenses, disability, or death of a third party.
• Property Damage to Third Party: It covers damages caused to another person's vehicle or property.

Compensation Under Third-Party Bike Insurance Policy

Under a third-party policy, the insurer pays compensation for the damages caused to a third party. However, this compensation depends on the factors mentioned below:

• Severity of injuries
• Age of the third-party
• The profession & income of the third-party

In case of the injury or death of a third party, the Motor Accident Claim Tribunal (MACT) decides the compensation amount. In addition, if there is property damage then the compensation amount is limited to ₹ 1 Lakh.

What Third-Party Bike Insurance Doesn't Cover?

Here is list of exclusions of a third-party bike policy:

• Damage to Your Own Bike in an Accident: This is a major limitation of third-party insurance. You won't receive any coverage for repairs or replacement of your own bike.
• Theft, Fire, Natural Disasters: Third-party insurance doesn't cover damages caused by events like theft, fire, natural calamities, or vandalism.

Is 3rd Party Insurance Enough for Bike?

The answer to this question is yes, third-party bike insurance is enough as per the Motor Laws. However, to cover your bike against the own damage you will need an extended coverage.

Third-party liability insurance does not cover any own damage sustained by your bike. It means damages caused to your own vehicle due to accidents, natural calamities, and theft are not covered underthird-party bike insurance.

Thus, for better coverage, you must opt for a comprehensive bike insurance policy as it offers complete protection against several unforeseen risks, including third-party liabilities. Moreover, this policy can be enhanced with add-on covers such as 24x7 roadside assistance cover, engine protection cover, or NCB protection cover by paying a nominal extra premium.

Wrapping Up!

In India, the law mandates third-party bike insurance for all two-wheeler owners. However, if you are looking for complete protection, this policy is not sufficient. Hence, you must choose a comprehensive bike insurance policy for extensive coverage. For the bike insurance plans, visit the official website of Policybazaar Insurance Broker Limited and find the right plan for your bike.