Have you recently bought a new two wheeler? Then, you must know that you need to purchase a third party bike insurance policy as well. As per the Motor Vehicles Act of 1988, it is mandatory to purchase this policy if you are planning to ride your bike on Indian roads. However, if you do not know the basics of this insurance policy, do not fret. In this article, we are answering the 5 frequently asked questions about third party bike insurance.
- What does a third party insurance for bike cover?
Your third party insurance policy will provide coverage when your two wheeler gets involved in an accident and causes damages to others, making you legally liable to pay. It covers the following scenarios:
- If your car causes injuries to the third party in an accident
- If the accident leads to death or the injuries caused by the accident leads to death of the third party
- If your car causes damage to the third party’s car or other property
- Is personal accident insurance mandatory to purchase with every vehicle insurance policy?
The personal accident insurance policy covers the owner-driver against accidental disabilities and death.
You have to buy the personal accident insurance policy only if you are not already covered under one. If you have a PA policy from your previous vehicle insurance policy or have purchased it as a standalone policy already, then you do not need to buy it mandatorily the second time.
- How much premium does a third party insurance for bike incur?
The premium for third party policies are standard across all insurers and is set by the IRDAI. The premium will be dependent mainly on the cubic capacity of the engine of your bike. The higher the cubic capacity, the more will be the premium.
However, this does not mean that you will have the same experience with all insurers as there are many other factors that determine how good an insurance company is.
- What does third party insurance for bike exclude from its coverage?
Since third party policy is a liability only policy, it excludes own damage. It pays only for the expenses that are you are liable to pay to a third party in case of an accident. Any damage to your vehicle or minor injuries to your self will not be covered. Plus, the coverage for third party liabilities is also subject to conditions. For instance, your third party claim can be rejected if the accident occurred while you were under the influence of alcohol or drugs or if you were flouting the traffic rules.
- How can one raise a claim on their third party bike insurance?
The claim for a third party bike insurance can be raised by the affected third party or their dependents. Informing the police and obtaining a copy of the FIR is essential for taking the claim process forward. Other vital documents required for the claim settlement process are:
- A copy of the insurance policy
- Registration certificate of the vehicle involved in the accident
- Records of the expenses incurred in the form of bills, invoices, and so on
If you can, it is advisable to purchase a comprehensive vehicle insurance policy for additional protection. Just like accidents, one never knows when a natural calamity, theft, or fire will occur. By paying extra premium, you can opt for coverage against these unexpected events as well.