• Third-Party Two Wheeler Insurance in India

    Two Wheeler Insurance
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    Every person has dreamt of owning either a car or a bike of their desire. But many people prefer owning two wheeler vehicles. And if they love bike rides, then owning a bike that can perform well on both off roads and on roads should be there choice; after all it is also a huge investment. And why not, your bike is one way of showcasing your personality and living the whims and fancies in your own way with much more to it. Driving your newly owned bike on city roads especially, is a complete risk considering today’s road and traffic conditions. But what if you were to be involved in an accident causing injuries to the third party?

    The recent reports from the IRDAI has shown that more than 60% of the two-wheeler vehicle population in the country do not have two wheeler insurance at all. Many government organisations and NGOs have conducted studies to know the reason behind this and the reasons stated by few who participated in the study were just shocking. The reasons given were two-wheeler insurance is not important, it is a waste of money, why to buy an insurance if its never put to use, what is the necessity to buy an insurance, etc. Buying a motorcycle is a huge investment in itself, you save money from your salaries to buy a normal scooter at the basic level for your daily work, commuting to office and so on. So it is only valid that making sure that hard earned possession stays with you in its best form for longer period of time is important. And to do so two wheeler insurance in necessary.

    There are two types of two wheeler insurance such as third-party liability insurance and comprehensive insurance. The comprehensive insurance covers all the situation and damages occurring to the two-wheeler including the accident cover for owner and third-party. The premium to this policy is higher and there are various add-on covers through which you can enhance the two wheeler insurance coverage. A third-party liability policy is the minimum basic cover that every bike owner must have according to the law. A third-party liability two wheeler insurance policy provides protection to the third-party only who has suffered any kind of damage to his/her body, permanent disability, property damage or death by the insured vehicle. This is one of those mandatory documents that you must have in your vehicle all the time to avoid penalties on random checking and to save yourself from any financial loss in case there is an unfortunate incident like accident or property damage.

    This policy has been mandated by the government to enforce safe and responsible driving by the vehicle owners

    Now, this is why getting a third party two wheeler insurance is necessary to get this risk covered. So third-party insurance is nothing but a risk cover for the passenger riding with you or on the road. Section 146 of the Motor Vehicle act 1988, makes third party insurance mandatory for all vehicles on the Indian roads. Failing to do so will attract heavy penalties.

    What is Third-Party Two Wheeler Insurance?

    This insurance policy will protect the passengers riding with the rider and civilians on the roads against damages caused to either of them. It will cover body injuries or accidental death, damages caused to a third party vehicle, legal liabilities if any and more The premium for third-party liability policy is the lowest that is fixed by the IRDAI so that it is affordable to every two-wheeler owner in the country.

    Advantages of Third-Party Two Wheeler Policy:

    • This insurance protects rider against legal obligations caused from a damage to the third-party. This insurance is also known as a liability insurance and hence the third party may be referred to as a person or a property.
    • The process of getting a third-party insurance is much easier than comprehensive motor insurance as it more economical and covers only the third party and not the insured vehicle.
    • In case of accidents met by your vehicle and third-party sustains injuries, that person can claim medical expenses and loss of pay if that person is working. You will also be liable to pay settlements in case the third-party suffers a permanent disability.
    • As per IRDA norms, damages caused to the third party’s properties are claimable up to Rs.1 Lakh.
    • If the driver of the insured vehicle sustains permanent disability, you would be eligible for claim compensation.
    • If the insured person suffers an accidental death, then his dependents will be eligible to claim compensation of the income loss. Only in case of loss of one limb or sight of an eye the compensation payable is 50%. In other cases, it is 100% claimable.

    Disadvantages of Third Party Two Wheeler Insurance:

    The name itself suggests, this is a third-party liability insurance and therefore it's bound to have few drawbacks;

    • It provides cover for third-party i.e. a person or thing. It does not provide any monetary cover for the owner or the passengers traveling along with the driver.
    • If the insured vehicle is in any accident or mishap, then all the repair expenses must be borne by the owner itself.
    • Since this is a third- party bike insurance, there are very limited options on rider and flexible enhancements.

    Exclusions:

    Here are some exclusions from third-party two wheeler insurance plans:

    • Mechanical and electrical breakdown
    • Accidents caused by you while driving without a license to a third-party (person or another vehicle)
    • Driving the vehicle while intoxicated by liquor or drugs
    • General wear and tear of the vehicle because of its daily use
    • Damage caused due to natural calamities
    • Damages caused due to war, civil protests, etc
    • Loss of vehicle parts because of burglary, theft in the house. But if the bike is stolen at the same time, few insurers will provide cover for the same.
    • No cover for general wear and tear of tubes and tyres. If the damage of these parts have occurred along with the vehicle because of accidents or mishap, the insurance company will be liable to pay 50% of the cost for repairs or replacement.

    Buying Third Party Two Wheeler Insurance:

    Buying a third-party two wheeler insurance along with comprehensive two wheeler policy is mandatory under the law. The comprehensive policy covers you and the bike in many ways with medical benefit, bike repairs, burglary etc.

    Not every bike dealer offers you third-party insurance while buying a new bike. But if you are buying a new bike and your dealer has not provided you the third-party policy, then ask with your insurance provider on the same. You can also buy this online on the insurer’s website or through multiple third-party websites after comparing prices. If you do not own a third-party policy for your bike, while renewing the comprehensive insurance of your bike, you can buy the policy.

    It is smart to do your homework online before you rush to your insurance provider, by comparing two wheeler insurance policies on a neutral website that gives you a range of options of all insurance providers. You can choose the best plan within your comfort zone for minimal cost with maximum and prime benefits. You can get quotes from the insurer and an also get some great discounts on the premiums.

    How to Claim Third Party Insurance?

    • The third-party can claim insurance against a two wheeler owner by first applying for it with the insurance company.
    • An FIR needs to be filed at the nearest police station after applying for it. The FIR should include information regarding the registration number of vehicles involved, license number of the perpetrator, and name and contact details of a witness.
    • After filing a complaint, the claiming party needs to file a case with the Motor Accident Claims Tribunal, where any claim requests are processed. The claimant should also submit supporting documents to authenticate the claim.
    • Once the court decides on the amount, all the costs should be borne by the insurance company if any death or injury occurs.

    Renewal of the Policy:

    • Keep a check on the expiry date of the policy to avoid inspection charges.
    • You can renew the insurance online before the expiry date
    • The paper works are minimal if you renew it online. Payments can be done through debit or credit cards.
    • Keep the required documents ready with you namely; current policy, registration certificate of your vehicle, RTO details and an ID proof.

    As per recent IRDA norms, the premium rates has been standardized with effect from April 1st, 2017.

    Premiums Payable Engine Capacity
    Rs.569 Up to 75 cc
    Rs.720 75-150 cc
    Rs.970 150-350 cc
    Rs.1,114 350 cc and above

    We hope now, that you are well aware of the importance of the third-party insurance. But if you are worried about which policy to buy and the legal liabilities, extended coverage provided etc. then internet is your friend. Compare policies online for best offers and benefits because it is easy to get lost in various options, so make a decision that is best suited for you.

    FAQ's – Frequently Asked Questions

    1.What is covered under third-party liability-only insurance policies?

    Third-party liability insurance policies provide coverage against damages caused to a third party’s assets, property, or vehicles, bodily injuries suffered by a third party, death of a third party, and accidental death of the policyholder/rider of the vehicle. Third-party liability insurance policies do not offer coverage against own vehicle damage and total loss of the vehicle.

    2.Should I opt for a third-party liability insurance policy or a comprehensive two-wheeler insurance policy?

    Third-party liability-only insurance policies provide very basic coverage to the policy buyer. If you use your two-wheeler extensively or have an expensive two-wheeler, it is best to opt for a comprehensive two-wheeler insurance policy since they provide higher coverage. Also, if you purchase a comprehensive two-wheeler insurance policy, you can customize and enhance your base policy by purchasing riders. Further, motor insurance companies also offer a No Claim Bonus to individuals with comprehensive two-wheeler insurance policies if they don’t raise any claims during the policy year. Before you decide which policy to purchase, it is necessary to assess your coverage needs and your premium payment ability.

    3.Can I renew my current third-party liability insurance policy online?

    Yes, you can purchase and renew third-party liability insurance policies online. You can renew your policy by either visiting the official websites of insurance companies or by visiting third-party insurance websites.

    4.If my two-wheeler has been damaged in an accident, can I raise a claim with my two-wheeler insurance provider if I have a third-party liability insurance cover?

    No, third-party liability insurance policies do not provide coverage against damages caused to one’s own vehicle. If you require an own damage cover, you will need to purchase a comprehensive two-wheeler insurance policy.

    5.Will I be eligible to receive a No Claim Bonus if I purchase a third-party liability insurance policy?

    No, individuals who purchase a standalone third-party liability insurance cover will not be eligible to receive a No Claim Bonus. The No Claim Bonus is only offered to policyholders with comprehensive two-wheeler insurance policies to reward these individuals for riding safely during the policy term.

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