Third Party Two Wheeler Insurance: A Detailed Study
- Author :
- TATA AIG Team
- Published on :
When driving on the road, you must be cautious about your safety and that of others. For this purpose, third-party bike insurance was made mandatory by the Motor Vehicles Act for all vehicles plying on the roads. No two-wheeler is allowed to run on the road without valid third-party insurance. Anyone without third-party insurance would be liable to pay a fine of up to ₹4000 (and/or imprisonment of up to 3 months).
What is third-party bike insurance?
Third-party two wheeler insurance is the most basic type of insurance plan that provides financial assistance in case your bike causes any third-party property damage, injury or death. However, this insurance does not provide an own-damage cover and is not meant to cover the damages to your two wheeler. Instead, third-party insurance is exclusively designed to financially support you to relieve your liabilities towards the property, loss of two-wheeler, injury or death of the third party due to an accident.
In case of a third-party injury or death, the compensation is decided by the court of law.
Features and benefits of online bike insurance for third-party
Here are some features and benefits of third-party insurance for a bike:
Personal damage to a third party: If another person is injured during an accident, the third-party insurance takes care of all the medical costs till recovery. In case the accident results in a loss of life of the third party, the insurance plan pays a compensation amount. This relieves you from a significant financial burden and saves you a lot of trouble.
Property damage compensation: In case your two wheeler caused damage to another person’s vehicle, house or property, the third-party insurance plan compensates the loss.
Personal accident cover: Most insurers give you an option to enhance your third-party insurance policy by opting for a personal accident add-on. This cover can help to protect you from losses that might arise due to an accidental physical injury or permanent disability.
How does the third-party cover work?
- 100% of the sum insured in case of death of the third party. The percentage varies in case of damage to body parts.
- 50% of the sum insured in case of loss of a limb or one eye vision of the third party.
- Up to ₹1 lakh in case of damage to third-party property.
IRDAI and third-party insurance
The IRDAI (Insurance Regulatory and Development Authority of India) decides the third-party premiums as per the capacity of the engine of the insured vehicle.
Inclusions and exclusions of third-party cover
A third-party insurance cover protects the insured or the vehicle under these circumstances:
- Personal damage to a third party leading a physical injury or death of the person, creating a liability on the insured.
- Damage to third party property.
- Personal accidental cover for the bike-owner.
- Any damage caused to the insured two-wheeler.
- Loss incurred due to drunk riding or riding without a licence.
- Loss incurred if driving without a valid driver licence such as holding a learner’s licence.
- Incidents occurred beyond the geographical scope of the policy.
- Claims arising due to contractual liabilities.
- Claims made to due loss or damage caused by war, riots or a similar situation.
How to file third-party online insurance of a two wheeler?
Steps for filing for claim when you caused the damage:
• Click the pictures of the scene and the person involved after the incident. • Take note of the necessary details of the third person. Also, take details of the eyewitnesses, if any. • Inform the insurance company immediately about the incident. • Register an FIR at the nearest police station. • File case at the Motor Accident Claims Tribunal Court. • Follow the proceedings and submit the required documents. • Share the court result with the insurer and get the agreed compensation.
Steps for filing for claim when you are the victim:
• Take details of the other person’s insurance policy and inform their insurer. • The case will be transferred to the Motor Accident Claims Tribunal Court. • Attend the court proceedings, submit the FIR copy, relevant documents, incident details and proofs. • Bring forward the eyewitnesses to corroborate your case. • Receive the compensation as decided by the tribunal court.
What is third-party two wheeler insurance?
This insurance protects you against any claim made by the third party for loss of property, bodily injury or death.
Which insurance is best for bike comprehensive or third-party?
Third-party insurance is mandatory in India. But it is recommended to buy a comprehensive bike insurance for all round protection.
What is a third-party premium in bike insurance?
The IRDAI announces the third-party premiums as per the engine capacity of the bike on a yearly basis.
What is the rate of third-party insurance?
The rate of third-party insurance varies as per the engine capacity of the vehicle and is announced by the IRDAI annually.