The Motor Vehicles Act, 1988 mandates that every vehicle should have insurance for driving on the road. While there are many types of insurance covers and add-on covers that you can take, third-party insurance cover is necessary. This post highlights some of the key advantages of this cover. Keep reading.
Third party insurance, also called liability insurance, is a risk cover whereby the insurance company pays for your legal liabilities in the case of an accident. The amount is paid to the third party (the injured) by the second party (the insurer), and not to the first party (the insured).
Third Party Insurance Vs Comprehensive Coverage
Comprehensive coverage includes any damage to your two-wheeler due to accidents, vandalism or natural disasters. Apart from covering the damages caused to your vehicle, it covers the emergency medical treatment of the first party as well. However, these extra provisions come at a price. People in India sometimes refrain from buying insurance for their two-wheeler due to the high costs involved. Sometimes, the vehicle is too old to add any extra expenses. In such circumstances where accidents are a common sight on the Indian roads, it is always better to go for at least a third party insurance instead of opting for none at all. Here we provide you with the benefits of a third-party two wheeler insurance.
Advantages of third-party two wheeler insurance
Fulfills Legal Requirements
According to the IMV Act of 1988, having a valid Third party Insurance is necessary if you want to ride your two-wheeler on public roads. Flouting this rule means becoming susceptible to inviting hefty penalties and even prosecution under various road safety laws.
Gives you a sense of security
Given that Indian roads are not very safe and accidents happen frequently, it gives you a sense of security that your insurance company would pay for the legal liabilities you owe to any third party that is involved. The definition of the third party involves persons as well as property.
Cheap and Affordable
As compared to the comprehensive coverage, the third party Insurance is cheaper and has a lower premium rate. This is because, in third-party insurance, the claims are much lesser than comprehensive coverage policies. The IRDA (Insurance Development Regulatory Authority) allows insurance companies to sell long-term Standalone Motor third-party Insurance for two-wheelers. It can extend up to a period of three years. There is no hike in the premium involved for these three years!
Since the vehicle is not insured in third-party insurance, the process of obtaining it is much easier. It requires less documentation. Let us look at the documents required enlisted below.
- Policyholder’s details such as name, occupation, address, date of birth and gender.
- Policyholder’s driving licence information.
- Vehicle registration number and registration certificate (RC) number.
- Credit/debit card/net banking details (for online payments).
For two wheeler, third party Insurance is very beneficial since it is easy on the pocket as well as provides safety in case of accidents. It is also mandated by the Indian law. So why take the risk of going uninsured?