Third party two wheeler insurance refers to a policy that covers you against any damages or losses caused to the third-party.
Two-wheelers, be it bikes or scooters, are popular in India. Why? Well, there are two major reasons for the same: One, they’re the fast and convenient mode of transport. Two, they’re affordable.
An office-going middle-class man buys a two-wheeler for conveyance. A teenage boy stepping into adulthood desires the cool two-wheeler for its speed and style. A housewife, however, considers buying a two-wheeler for her household purposes such as purchasing groceries, dropping kids to school, etc.
But, have you got your prized possession covered against accidents and damages to third-party? If not, what’re you waiting for? Get two wheeler insurance for your bike or scooter.
Benefits of Third-Party Two Wheeler Insurance
As a stipulation of a rule by the Indian Motor Vehicles Act, 1988, everyone riding a two-wheeler must have a two-wheeler insurance policy.
Now that you know it is a compulsion to have bike insurance in India, let’s discuss some of the key benefits of third-party bike insurance.
The third party two wheeler insurance is affordable. This offers you high coverage at low premium rates. The rates of two-wheeler insurance third party are economical than the comprehensive bike insurance.
- Provides Financial Assistance
A third-party insurance policy for bike covers death or injury caused to the third party person, as well as it protects provides coverage against loss or damage to third-party property.
- Easy Documentation and Processing
Buying a third-party bike insurance is hassle-free and it requires minimal documentation. The reason is, it does not cover your insured two-wheeler but the third-party.
What Does Third Party Two Wheeler Insurance Cover
The conditions where third-party bike insurance has your back are as follows:
- Third-party Property Loss or Damage
The process kills you financially as well as mentally if there’s third-party property damage because of your bike or scooter. According to the norms by IRDA, damages to third-party property are covered up to Rs. 1 Lakh under two-wheeler insurance.
- The demise of the driver or owner of the insured two-wheeler
If you’re the driver or owner of the bike and you don’t survive after being met with an accident by your insured two-wheeler, your loved ones or dependents would qualify to claim compensation for the unforeseen loss of income.
- Bodily injury or death of the third party
If a person on road meets with an accident due to your two-wheeler and is injured, then that individual can claim for his/her medical expenses because of loss of income if s/he is not able to resume work. Moreover, you also qualify for the compensation because of the physical disabilities.
- Permanent Total Disability of the driver or owner:
If you driver or owner of the insured two-wheeler and sustain the permanent total disability after an accident with this bike, you would qualify to claim the compensation.
What Does Third Party Two Wheeler Insurance not Cover?
Third party bike insurance has a few exclusions. These exclusions are:
- Accidental damage/liability/loss borne outside the set geographical area.
- Any damage caused to your own bike or scooter.
- Claims that arise out of contractual liability
- Damage, loss, liability caused due to invasion, war and warlike operations.
- Any liability caused due to nuclear weapons or radioactive contamination, directly or indirectly.
Renewal of the Third party two wheeler insurance
Well, if we talk about the renewal of third-party bike insurance, then it is a hassle-free, simple and fast process. You can renew your two-wheeler insurance online instantly.
However, in order to renew your bike insurance, you need to keep a check on the expiry date of the policy.
But what if you forget to check the expiry date and your policy expires? Not to worry, you can renew an expired policy too with minimal paperwork. You just have to pay additional inspection charges.
Documents Required while Renewing your Third Party Two Wheeler Insurance Policy:
Here’s a list of necessary documents that you must keep handy while renewing your 3rd party bike insurance:
- Existing policy for reference
- Net Banking Details/Debit Card details
- Registration Certificate (RC) of the insured vehicle.
Third Party Two-wheeler Insurance Rates:
How much does a third-party two-wheeler insurance cost?
IRDA has regulated the premium rates of two-wheeler insurance third party. They are:
Applicable Rates of Premium
|Above 350CC||Rs. 1,114|
|Up to 75cc||Rs. 569|
Third-party Vs. Comprehensive Two-Wheeler Insurance:
Comprehensive Two Wheeler Insurance
Third Party Two Wheeler Insurance
|Offered Coverage||It is a comprehensive coverage of fiscal and legal liabilities that arise out of damage caused to your vehicle along with the damage caused to the third-party vehicle.||This insurance covers damages or losses to a third party or their property.|
|Cost||This bike insurance is expensive as it offers a greater scope of protection.||This insurance offers a limited coverage. It is less expensive than the comprehensive bike insurance.|
|Available Add-on Covers||Return to the invoice Zero Depreciation Cover for add-ons like Roadside Assistance||Personal accident cover|
|Which one is better?||Comprehensive cover offers better protection||Offers limited coverage|
Frequently Asked Questions:
Q1. How to cancel the two-wheeler third party insurance before it expires?
A1. In order to cancel your third-party bike insurance, you need to submit the necessary documents indicating either of the following:
- The Registration Certificate (RC) of your bike or scooter has been cancelled by the RTO.
- Another insurance provider insured your two-wheeler
Q2. Can No Bonus be availed on expired insurance plan?
A2. You’ll be eligible to avail the No Claim bonus on the expired insurance policy only if you renew it within 90 days from the expiration date.
Q3. Can No Claim bonus be transferred?
A3. You can transfer your No Claim bonus if you want to switch between the insurance providers. However, you must have renewed the policy within 90 days from the expiration date of your policy.
Q4. What documents are needed while raising a claim?
A4. While raising claims, you would need the following documents:
- Vehicle number, policy number, chassis number, engine number, etc.
- Your contact details
- The extent of loss and its details
- Time, location and date of the loss
- The extent of damage or injuries (if required)