Third-party Insurance: An Overview

Among the many types of two-wheeler insurance plans available, third-party coverage is the most basic. In case of any road accident involving the insurer’s two-wheeler, the policyholder is covered for every third-party liability (injuries on the body, death, and/or property damage). For third-party property damage, the extent of compensation is limited to Rs. 1 lakh, while the compensation amount for third-party bodily injury or death is determined by the court.

Bike Insurance for Third parties: Advantages 

A third-party 2-wheeler insurance plan has the following advantages:

1. Easy documentation: Documentation for this plan is simple and can be completed in a few steps. Because the motorbike is not insured under this plan, fewer inspections and checks are required. This plan can also be purchased anytime while sitting in the convenience of your home.
2. A simple online procedure:  Nowadays, almost all insurance companies offer their services online, which includes purchasing insurance plans online. A purchase of an insurance policy can be made much more convenient and easier using an online purchase process.
3. A financial commitment is not required:  An insurance policy covering third-party liability for a two-wheeler protects the insured against any loss or damage caused to another person or property.
4. The legislation mandates: According to the Indian Motor Tariff Act, you are legally required to insure your bike at least with a third-party liability plan.
5. No Stress: Accidents can occur at any time and can leave you traumatised, especially if a third party suffers a loss and you are expected to cover the costs. The insurance company handles all the financial obligations against the third party for you, so you are relieved from mental stress.

How to purchase Third-party two-wheeler Insurance online?

Third-party two-wheeler insurance is easily available offline and online. With the advent of the internet, it has become more feasible to buy third-party insurance online without any hassle. 

Step 1: Visit the web address of any insurer and tap on the ‘Bike’ tab.

Step 2: Enter the bike’s registration number. It is also possible to enter other details such as brand, model, bike variant, registration year, RTO location, etc., if you do not know your bike’s number.

Step 3: Get quotes for bike insurance policies by entering your name & mobile number

Step 4: Depending on your budget and needs, choose a bike insurance quote.

Step 5: You will receive an email with the policy document after you make payment for the selected bike insurance policy.

How can you renew the Third-party two-wheeler Insurance Policy online?

The following steps will guide you through renewing your third-party bike insurance policy:

Step 1: Visit the website of InsuranceDekho and click on the bike button.

Step 2: Click the next after entering your bike’s registration number. Alternatively, you can fill in additional details such as the brand name, variant, model number, registration year, and registration city, if you don’t know your bike’s number.

Step 3: Describe your existing two-wheeler policy expiry date and the name of your insurer. Also, you would want to let your insurer know if you have claimed on your previous policy.

Step 4: You will also need to provide some other information, such as your name, phone number, and the desired insurance plan tenure.

Step 5: Comparing policy quotes from different insurers will allow you to select the one that best suits your needs. Adding add-ons is also an option.

A third-party insurance claim for a bike is quite straightforward. An insured individual as well as a victim can make a claim. The following are the claim processes for both parties:

How to claim Third-party Insurance for a bike?

Third-party bike insurance claim procedure if the damage is caused by you, to a third party’s bike:

1. After the accident, click the pictures of the damages.

2. The damaged vehicle details should be noted down.

3. Keep a record of the witness’ contact information if you find an eyewitness to the accident.

4. Act according to your insurer’s instructions after an accident.

5. File First Information Reports (FIRs) at the respective jurisdiction’s police station.

6. A lawyer can help you file a claim at the Motor Accident Claims Tribunal Court.

7. Present the incident to the court and provide the necessary documents and other details.

8. Get compensation for the property damage and bodily injury expenses by sharing the court’s order with the insurance provider.

How to file a claim for Third-party two-wheeler Insurance if you are a victim?

You can file a claim for third-party bike insurance as follows:

1. The third party involved in an accident or mishap should be notified of the incident by their insurer if they are the victim.

2. You have informed of the facts, and the two-wheeler insurer has agreed to transfer the case to the motor insurance claim tribunal based on such information.

3. The FIR copy and incident-related proofs should be submitted at the court hearing.

4. Bringing some eyewitnesses to court can also help you corroborate your claims.

5. A compensation amount will be determined by the tribunal based on all the facts presented.

How does Third-party two-wheeler coverage work?

• An insured two-wheeler is insured for third-party property damage up to Rs.1 lakh under the third-party/liability-only policy.
• Courts determine compensation amounts in cases of bodily injury or death to third parties. A 100% compensation is provided by the insurer if both limbs or eyes are lost, a permanent disability is caused, or a third party is killed. In contrast, the insurer offers 50% reimbursement in cases of partial disabilities such as physical injuries, the loss of one leg, or the loss of one eye.
• Personal accident coverage can be purchased separately for the pillion rider.
• Two-wheeler driver’s PA or personal accident insurance of Rs. 15 lakh is required.

What is not covered by a Third-party two-wheeler Insurance Policy?

When making a claim, you must know what is and is not covered by your third-party bike insurance plan. The following are some common situations:

• Third-party bike insurance does not cover a policyholder’s insured bike in the event of loss or damage.
• A bike insurance policy wouldn’t cover you if you were driving drunk or without a valid license while riding your insured bike.
• It is not possible to claim for accidents that occur outside of the geographical boundaries of the cover.
• Contractual liability claims are not covered by third-party bike insurance.
• In addition, any claims arising from damage or loss caused by war or warlike conditions, or radioactive contaminants are not compensated by insurance companies.

What is the Third-party bike Insurance Plan compensation process?

Generally, third-party bike insurance plans compensate policyholders as follows:

• Nominees can claim 100% sum assured in the event of the insured’s demise. However, insurance companies may vary in the percentages offered for damage to body parts.
• A 50% compensation is offered if one eye or one limb is lost.
• It is possible to receive compensation of up to Rs. 1 lakh for damage to the property.
• Owner drivers or drivers who have valid RC or driving licenses will be offered compensation if they are driving the insured vehicle.

Conclusion

Having third-party two-wheeler insurance is essential because it will cover any legal and financial repercussions that may follow from third-party injury or damage in addition to safeguarding you from a third person being injured, killed, or having property damaged. Therefore, one should not consider it as an unnecessary expense. 

If you need more guidance and assistance with availing of third-party insurance, visit Piramal Finance. Check out their blogs for more information on insurance coverage or about products like personal loans, credit cards, EMIs, and more.