So you are excited to ride your bike through the roads. Let nothing come in between your joy ride. Not even those speed bumps. And obviously not something that’s illegal.
Do you know that a valid third party bike insurance policy is a must to ride legally on Indian roads?
Yes, according to the Motor Vehicles Act, 1988, the third party insurance is mandatory for any vehicle plying on the Indian roads. Be it a bike or car, the third party insurance is compulsory.
As a bike owner, you must have a third party bike insurance policy.
Let see what exactly third party bike insurance covers, what it does not, how much does it cost, and more.
Explained – Third Party Bike Insurance
When we talk about insurance, two parties are legally part of thecontract, the insurance company and the policyholder. The policyholder pays the premium to stay financially covered against the risk. The insurance company promises to pay the risk coverage as per the policy.
But when you buy an insurance policy for your vehicle, you will come across third party also.
Third party bike insurance policy covers the policyholder against the risk of bodily injury, loss, or death of third party due to the insured bike.
Third party can be:
- Passengers travellingon another vehicle
- Damage to third person’s property
You will have to pay hefty penalties if you do not have a third party insurance policy. Plus, you may have to pay all the financial expenses of the loss that may arise due to an accident, which otherwise would be taken care by your insurance company.
Having a third partybike insurance does not ensure you are protected against any road incidents, rather it ensures that you stay financially covered in case of such eventualities.
Let’s see what third party bike insurance policy offers as a coverage.
Third party Bike Insurance Policy Covers:
- Covers bodily injury and/or death of the third party
- Covers any damages to the third party vehicle
- Covers any damages to the third party property
- Covers personal accident for the policyholder and offers an optional pillion rider cover.
Personal Accident Cover:
For policyholder (bike owner-rider): Athird partybike insurance policy offers a personal accident cover with the coverage of Rs.1 lakh on a premium of Rs.50.
Personal accident coverage protects the financiallyagainst the risk of an accidental death or total permanent disability.
Optional Personal Accident Cover for Pillion Rider:
Optional personal accident cover for pillion rider financially protects the pillion against the loss or death on a premium of Rs.50 with Rs.1 lakh coverage.
The benefit is payable under the following conditions as per the table:
|TYPE OF DISABILITY||PERCENTAGE OF CAPITAL SUM INSURED|
|Death, Loss of Two Limbs or sight of both eyes or one limb and sight of one eye||100%|
|Loss of one Limb or sight of one eye||50%|
|Permanent Total Disablement from injuries other than named above||100%|
Third party Bike Insurance Exclusions:
List of few exclusions to a standard third party bike insurance policyare as follows:
- Does not cover bike’s own damage
- Bike theft is not covered
- Damages incurred to the third party when the policy is not in force or lapsed
- Deliberate attempt of damaging
- Damages arising due to riding without a legal and valid license
- Damages arising due to riding under the influence of alcohol or drugs
- Loss or damage incurred while riding outside India
- If the vehicle is used for commercial purposes
Third party Bike Insurance Premium (2017):
The Insurance Regulatory Development Authority of India (IRDA) decides the premium for the third party bike insurance policy, which iscalculated keeping bike’s engine cubic capacity (cc).
Third party bike insurance policy premium based on Engine CC:
|CONDITION RELATING TO ENGINE CAPACITY||APPLICABLE PREMIUM RATE|
|Less than 75 cc||Rs.569|
|75- 150 cc||Rs.720|
|150- 350 cc||Rs.887|
|Exceeding 350 cc||Rs.1,019|
*Note: Motor Third party Insurance Premium with effect from 01st April 2017
Multi-year Third party Bike Insurance Policy:
Bike owners can now buy third party bike insurance policy for 3 years at once and cover in a single policy. This way you are financially protect against any third party liability for straight 3 years. Bike owners don’t have to renew policy every year, at least for 3 years.
When you buy a long-term/multi-year third party bike insurance policy, you save lot of money on every year premium hikes. Plus, the worries of forgetting the renewal of policy for 3 years will be at bay.
Renew Your Third party Bike Insurance:
Third party bike insurance policy will be either for a single year or multi-year, however, when the policy period ends, the policy terminates and you are no more covered against the legal third party liabilities. If during this period of policy lapse and renewal, something happens you will have to bear the financial burden and also the legal issues if any.
Hence, it is very important to renew third party bike insurance on time. You can renew either from the website of the insurance company or through online insurance brokerage firm or an online insurance web aggregator.
I hope this article has given you a brief insight to the third party bike insurance policy. You might have also got an overview right from what it covers, exclusions, policy premium, personal accident cover, multi-year option to renewal of third party bike insurance.
Go for a ride. But with a valid third party bike insurance policy.