What is Third Party Bike Insurance?

Third-Party Bike Insurance is a kind of vehicle insurance policy. It protects you from the costs that you might have to incur when a third party damages your vehicle. 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.

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 by 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 it
  • Given the nature of the policy, third party bike insurance is less expensive and has lower premiums to be paid
  • Third-party bike insurance can allow limited add-on covers. There are not too many additional policies as in the case of comprehensive insurance 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 few stated geographical areas

Benefits of Third Party bike Insurance

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 be 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 Buy/Renew Third-Party Bike Insurance?

You can reach out to an insurance company, its agent, or any online site for buying third-party bike insurance. Also, when you wish to renew the policy. You will have to fill in your details like name, number, driving license, etc. Apart from your own personal details, you will have to mention the vehicle’s details such as bike’s or two-wheeler’s number. This is its registration number. Sometimes you may also need to provide the engine number and the chassis number. Also, share the make and model name of your bike as well as the previous policy number if any. The insurance provider may ask the date & city of purchase of the bike/two-wheeler vehicle, and perhaps the manufacturing date as well.

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 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.

Should I contact the third-party bike insurance company immediately or can I claim reimbursement later for the damage?
Always contact your insurer immediately after the third-party damage is done. Do not make the claim several days later. Also, contact the police as soon as possible.
How can I claim that is third-party damage and not own damage?
You will need to have substantial evidence to prove that it is a third-party damage insurance claim. Lodge an FIR to the nearest police station immediately and share a copy with insurers.
Can I renew my third-party bike insurance from another insurance company?
Yes, you can renew your third-party bike insurance from another insurance company. There is no obligation to buy or renew policies from any particular insurance provider.
Can I make a No Claim Bonus (NCB) under the third-party bike insurance policy?
No, you can not make a ‘No Claim Bonus (NCB)’ under the third-party bike insurance policy. It comes under the comprehensive bike insurance policy.
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