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Bike Insurance 101: Third-Party Liability Cover

Having a bike of your own is a matter of pride. When you purchase your own bike, it becomes very precious to you; so it is understandable that you wish to safeguard it from any damages. But when it comes to the road, even if we are riding safe, accidents can happen any time and you might end up damaging another person’s vehicle or health in the process which you will have to pay for. So, what can be done in that situation?

If you live in India, you might very well know that the government has made it mandatory to have a third-party insurance policy for bike as well as cars. But what is it all about?

Here is all you need to know about bike insurance, third-party liability cover – 

What is third-party insurance?

Third-party insurance or liability cover is a Government-mandated policy for your two-wheeler that provides coverage for any financial loss due to damage or injuries caused to another vehicle, property, or person. Having third-party insurance for bike is compulsory under the Motor Vehicles Act 1988 and riding your bike without the insurance is illegal and can incur penalty.

How is third-party cover different from comprehensive plan?

Lot of people use the two terms interchangeably but that is incorrect as there is a base difference between the two. Two wheeler insurance third party insurance covers liabilities of the third-party in case of damage and/or injury. On the other hand, comprehensive policy covers both third-party insurance and own damage cover.

What are the key features in third-party liability cover?

The third-party liability cover has many advantages, even if taken without the comprehensive cover. Here are the key features of the same –

  • Very little documentation: It is easy and hassle-free to purchase a third-party insurance for bike as there is not much documentation required, because unlike comprehensive policy it does not cover losses.
  • Protection against death or injury: In case there is an accident which involves your two-wheeler, then this policy provides protection against death or injury to a third person and covers all the medical costs of the person. If the person is cripplingly injured and cannot resume work, and he/she claims loss of income, the insurance company compensates for that claim.
  • Damage to third-party vehicle: The policy offers coverage to any damages incurred to the third persons car or property, with the restriction of Rs. 1 lakh on the amount payable.
  • Compensation to dependents: In case the owner or driver passes away, then the insurance company provides compensation to the family or dependents of the insured vehicle.
  • Low premium: As compared to the comprehensive insurance cover, the third-party liability cover has very less premium which makes it very affordable.

The Third-Party Liability insurance cover however does not cover damage to your own vehicle, or any damage caused outside the geographical location covered by the policy. It also does not cover any claim that arises out of a contractual liability, or any loss caused due to war, nuclear weapons, or radioactive contamination.

So, avail the third-party insurance for bike at the earliest. You can avail vehicle insurance online easily without having to go through any documentation hassle.

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