Advantages Of Having A Third-Party Bike Insurance

Few things are more important than getting your vehicle insured before road travel. Not only is it statutorily mandatory, but it is also highly advantageous to have at least third-party insurance for your two-wheeler. 

The Motor Vehicle Act of 1988 makes it mandatory for every vehicle owner to have a minimum of third-party insurance. Not carrying one can get you a hefty fine. Further, if you own a bike, it becomes all the more important because the chances of an accident are always higher in the case of bikes than four-wheelers. 

What is third party bike insurance?

Third party bike insurance is a policy that covers you against the financial losses or damages caused to another person due to your vehicle. It helps you save costs by making the insurance company settle damages done to them on your behalf. The insurance company will cover you against legal claims arising out of such accidents as well. 

Features of third-party bike insurance

• It protects you against the death of another person in an accident involving your bike
• It covers the financial losses to another person arising out of your vehicle
• It provides accidental cover to the third person in case of injuries
• It also covers damages to the property of the third person

Why do you need third-party bike insurance?

Unfortunately, Indian roads have one of the highest accident rates in the world. Not to mention, two-thirds of these accidents involve two-wheelers and pedestrians. It makes it all the more important to protect yourself in times of any unforeseen circumstances. 

If you own a bike, the first thing you need before going on the road is bike insurance. There are several policies in the market which provide different categories of protection. Of these, the minimum you need to travel is third-party bike insurance. 

Per the latest amendment in the Motor Vehicle Act, not having third-party insurance for your bike can bring you a fine of Rs. 2000. The repeated offenders can be fined an amount of Rs. 4000 and imprisonment up to 3 months.

Advantages of third-party bike insurance

Several advantages come along with purchasing the third-party policy for your bike. These are:

1. In case of an accident, it protects you from the financial burden of paying the third person out of your pocket. After the policy, it falls upon the insurance company to cover all the damages to the third person or their vehicle.

2. It protects you from the legal hassles that may arise out of an accident. The insurance company makes a settlement on your behalf with the aggrieved party. It is in the policy contract that mandates the insurance company to compensate for the losses.

3. It protects you from the fines that traffic police officials can charge you if found without insurance. The amount of the policy is comparably lower than the penalty imposed. It only makes more sense to buy the insurance policy.

4. It gives you a certain peace of mind while on the road. It is always beneficial to have yourself covered against unforeseen circumstances. 

5. Buying third-party insurance is very easy. One needs very few documents to purchase the policy as it only involves a third person. Moreover, with the onset of online platforms, it has become more accessible. You can check insurance policies online and compare among different options. One can easily purchase third-party insurance with just a few taps on their mobile phones.

6. The premium for third-party insurance is lower than other comprehensive vehicle insurance policies. For two-wheelers, it is all the more affordable. 

How much does third-party insurance cost?

With effect from 2018, the premiums for third-party bike insurance have been standardized. The present rates for engines of different categories annually are as follows:

1. A vehicle with engine capacity up to 75 cc – Rs 427
2. Engine capacity between 75 cc and 150 cc – Rs 720
3. Engine capacity between 150 cc and 350 cc – Rs 985
4. Engine capacity above 350 cc  – Rs 2323

What does third-party bike insurance cover?

• Death or body injuries to the third party –

   The third-party insurance covers for the accidental death or bodily injuries arising out of your vehicle. It covers the hospitalization charges or other medical expenses. The victim is also eligible for compensation if the accident results in a loss of income or if they cannot resume work. The insurance company is bound to compensate for that as well. 

• Damages to the property of the third person –

  The third-party insurance policy covers damages to the third person’s vehicle. The laws provide maximum compensation of up to Rs. 1 lakh to settle claims against damages. bike insurance policy see yourself.

In conclusion

Thus, it is necessary to have third-party bike insurance before you hit the roads. It provides you with a peaceful and safe travelling experience. If not already purchased, perform a quick bike insurance check online and buy your insurance today.