Third-Party Bike Insurance is an insurance policy that is a kind of vehicle insurance policy. It protects you from the costs that you might have to incur when you injure a third-party person, vehicle, or property. It is a type of vehicle insurance policy meant for two-wheelers against the public liability of third parties. Hence, it is also called third-party liability cover. This is a mandatory insurance policy under The Motor Vehicles Act, 1988 that a vehicle owner must-have for his/her two-wheeled vehicle.
Features of Third Party Bike Insurance
There are some specific features of third-party bike insurance. These key characteristics make it different from other types of vehicle insurance like Comprehensive Policy or Own Damage Policy. These are:
- Third-party bike insurance safeguards against financial loss that the vehicle owner will undergo when the damage is caused to others
- Third-party bike insurance provides limited coverage that is coverage against third-party public liability. It is not for theft or loss and damage due to natural calamities. Also, it does not cover personal accidents when the rider causes them. However, the rider has to buy a PA cover separately to get financial -protection against personal accidents.
- Given the nature of the policy, third party bike insurance is less expensive and has lower premiums to be paid
- Third-party bike insurance does not allow add-on covers to be included in the policy.
- It is mandatory to buy this policy for every vehicle owner or else one will be held guilty. You will be liable for hefty penalties. The driving license may also get canceled if you don’t have an active policy of third-party bike insurance. Sometimes, there is a possibility of cancelation of bike’s/two-wheeler’s registration as well
- Most of the insurance companies offer quotes for third-party bike insurance starting from very low prices. You can purchase and renew them online. You can get a yearly policy and update it annually. If you do not wish to renew it every year then get insurance for the long term. The insurance will be valid for a longer number of years like 3, 5, or more
Coverages and Exclusions
One must know what is covered in an insurance policy and what is not before getting a policy. Below we list down the coverages and exclusions of third party bike insurance:
1. Coverages
- Covers damage to the bike or two-wheeler owner from liabilities arising out of third persons/third parties
- Coverage for any kind of bodily harm or physical injury due to accident by third parties
- Insurance amount on the death of the owner or the rider of the bike due to the other’s fault
- Insurance compensation for any sort of physical disability sustained by the owner or the rider due to third parties’ mistake
2. Exclusions
- No cover for loss/damage due to theft, own damage/accident/collision/overspeeding, or natural calamities
- Not a comprehensive policy so not end-to-end coverage but a limited one
- When you are under any influence as alcoholic drinks or drugs
- If the rider/owner doesn’t have a driving license
- Mechanical/electrical failure or breakdown due to wear and tear as well as depreciation costs
- Sometimes, third party bike insurance is not applicable outside a few stated geographical areas
How to Buy Third-Party Bike Insurance from Paytm?
Paytm enables an easy and instant purchase or renewal of a third-party bike insurance policy through its app. Although you can reach out to an insurance company or its agent, at Paytm you can compare the several quotes and pick the suitable one for yourself. Follow the simple steps as mentioned below:
- Open the Paytm app on the phone and scroll down to the ‘Insurance’ section
- Here you can view various types of insurance such as life insurance, car insurance, etc.
- Click on bike insurance to get a policy for any kind of two-wheeler. Enter the vehicle number to get the insurance quote
- Paytm will automatically gather all the related information and ask you if the details are correct. If not, you can change the details, and if yes, then proceed with a ‘Yes’. It will show you various types of relevant policies
- Alternatively, you can proceed without the vehicle number by selecting the details of your vehicle one by one. Choose the brand, model & variant, and then enter the registration year and city/region of registration. Paytm will ask you when does your policy expire and then it will show plans as per the details given by you
- Vehicle insurance plans are based on vehicle value you seek on claiming, previous claims if any for NCB (No Claim Bonus), and the policy type (third-party or comprehensive). You can filter for the type of policy you seek
- You can compare the various plans, opting for 3 policies’ comparison at a time
- In case, you already have a policy that is yet to expire, the same imformation will be available on-screen with policy details
Benefits
The coverage that is provided in a third party bike insurance carries certain advantages with it as mentioned below:
- Apart from the insurance cover, third-party bike insurance covers you legally. As this is a mandatory policy, you must comply with the law. Not having an active policy can have consequences
- Third-party bike insurance can be a quick and easy process with minimum documentation. It becomes hassle-free especially when so many insurance companies offer quotes online
- It is less expensive and starts with yearly premiums as low as less than Rs. 1,000 and is cost-effective
- Unforeseen accidents and financial losses associated with them can cause mental stress. But, a third-party bike insurance policy paves the way to being stress-free. Claim your insurance when it is third-party liability
- Alternatively, when you damage a third party’s vehicle, third-party bike insurance can be claimed by the other party too. This can also ease off your mental stress and financial obligation
How to Claim Third-Party Bike Insurance?
The prerequisite to claiming third-party bike insurance money is to have an active policy. So make sure to buy one and renew it before expiry. You will need the Registration Copy (RC Book) of your vehicle which means that your bike/two-wheeler is registered with the Regional Transport Office (RTO). You need to have the insurance copy, driving license, pollution certificate, and all relevant documents. Also, the FIR copy or investigation report by authorities. The insurance company sends a surveyor to confirm the claim and assess the estimate of the claim. Once verified, your claim will be approved.
Wrapping it up:
First things first, third-party bike insurance is compliant with the law and is not a choice; hence a bike owner or any two-wheeler owner must buy a policy and renew it timely. Apart from the legal obligation, it provides protection and comes with several benefits as discussed above. One may go for a comprehensive bike insurance policy if s/he wishes to have coverage provided by third-party bike insurance plus the covers for damage due to theft, natural causes, or own damage and more add-ons.
Buying a policy from Paytm is hassle-free as it is convenient to check quotes and easy to process a policy. Many insurance providers ask as many details like name, number, driving license, etc. Apart from your own personal details, you may have to mention the vehicle’s details such as engine number and the chassis number other than the bike’s registration number. Paytm prompts you to share these details in case you do not remember the registration number, otherwise, Paytm will fetch all the details itself.
