Third-Party Bike Insurance
Third-party bike insurance means protecting the policyholder from legal and financial liabilities arising from damages caused to a third party. It involves covering financial and legal liabilities arising from vehicle damage, injuries, property damage, and accidental death of the third party. According to the Motor Two wheelers Act, 1988, every two wheeler must have valid third party two wheeler insurance.
What is Third Party Bike Insurance?
A third-party bike insurance plan is a type of motor insurance policy that covers third party legal liabilities if the insured two-wheelers are involved in an accident on the road. Moreover, it also covers financial liabilities arising from two wheeler damage, injuries, or accidental death of the third party by the insured two wheeler. For example, if the car hits a pedestrian walking on the road or another car.
The third-party bike insurance covers accidental damage and injury caused by the insured two wheelers to the third party. The third-party two wheeler insurance covers situations like:
- Property Damage
- Vehicle Damage
- Death of the 3rd Party
- Bodily Injuries caused to the 3rd party
However, third party two wheeler insurance does not cover any liabilities that arise if the driving is drunk while driving the insured two wheeler.
Apart from the third party, you can buy a comprehensive insurance policy that covers the financial losses arising from damages caused to your car due to natural and artificial calamities like fire, storm, etc.
Why Is Third Party Bike Insurance Important?
Apart from the fact that having third-party bike insurance is mandatory under the law, this type of insurance comes in handy when your two wheeler is involved in an accident. Calculating the damage caused due to an accident beforehand is quite tricky, and accidents sometimes cause death also. A third party two wheeler insurance plan will provide you protection against the financial losses that arise due to such situations. The victim can claim compensation, which the insurance company will provide on your behalf if you have a valid insurance policy.
How Does Third Party Bike Insurance Work?
As stated earlier, 3rd party bike insurance helps ease the financial burden on the first party that arises due to financial or legal claims filed by the third party. In this case, the first party refers to the person who owns the insured two wheeler. Second-party refers to the insurance company that will settle the claims on behalf of the first party. Third-party refers to the person who is filing the compensation claim.
Insurance companies offer two types of third party claims under this insurance- bodily injury liability and property damage claim.
Third-party bodily injury claims arise when the insured two wheeler causes bodily injury to the third party. The claim provides coverage for hospitalization, loss of income due to death or permanent disability, etc.
Third-party property damage claims arise when the insured two wheeler causes damage to the property of the third party. It includes claims arising from damaged landscapes, fencing, front lawn, mailboxes, etc., and replacement of loss of buildings like shops.
Features of Third Party Bike Insurance
There are some significant features of the third party two wheeler insurance that you must know about. These include:
- The injured third party and the insured are the beneficiaries in 3rd party bike insurance. But these are just the mentioned beneficiaries. In reality, the insurance money is directly credited to the insurance company, the third party, or the heir (in case of death).
- On these plans, the IDV of the insured two wheeler is not considered as it is considered a legal liability, and the value of legal liability cannot be decided beforehand.
- The injuries caused to the owner-driver are not covered under a third party plan unless you have opted for a personal accident for the owner-driver. It only covers the bodily injuries caused by the insured two wheeler to the rest of the world.
- The process of buying and renewing two wheeler insurance has become easy and seamless with the help of online methods. You can easily renew or buy an insurance policy by visiting the Renewbuy website.
- Third-party claims may involve taking help from lawyers.
Thus, these are the features of a 3rd party bike insurance plan that you must know about. Multiple companies offer these plans, so consider all the aspects and buy the best plan for yourself.
Benefits of Third Party Bike Insurance
A 3rd party bike insurance comes with many advantages. To know the importance of a third party cover, you must read the benefits that are mentioned below:
Offers Financial Protection and Legal Cover
Legal liabilities can lead to bankruptcy and financial burden if the two wheeler owner cannot pay for the damages caused to the third party. It can be financially draining and can lead to a dent in the savings. With a third party plan in place, your legal liabilities are taken care of by the insurance company so you can keep your savings for other purposes. This is one of the primary reasons why one should buy insurance cover.
Mandatory Under Law
Having third-party bike insurance is compulsory under the Motor Two wheelers Act, 1988. If you want to drive your car on the roads in India, then third-party bike insurance is required. In case you do not have a good insurance plan, you can face fines and punishment. Thus, as a law-abiding citizen of the country, you must have a third party insurance plan before driving your car in India.
Easy and Seamless Process
Buying third party insurance is an easy and convenient process that you can do from the comfort of your home. The IRDA has already fixed a price for third party insurance, so there will be o discrepancies. You can use your phone or laptop to buy a third party insurance policy online. You can also renew your policy online without any issues at all.
A third party two wheeler insurance is cost-effective for the premium you need to pay for the policy. You have to pay a lesser premium for a third party liability policy than a comprehensive insurance policy. This makes the policy highly cost-effective and affordable.
Peace of Mind
Third-party bike insurance helps the owner to drive the car without any stress. This is because they do not have to worry about arranging money if the two wheeler is involved in an accident on the road that causes injury or property damage to a third party. Thus, this protection from unforeseen third party liabilities helps the owner drive peacefully on the roads in the country.
These are some of the significant advantages of a third party insurance cover that you must know about. This will also help you understand why buying an insurance cover is beneficial for every two wheeler owner.
What is Covered Under a Third Party Bike Insurance Plan?
A third party two wheeler insurance covers damages or injuries caused to a third party by the insured two wheeler. The insurance policy also covers property damage up to a limit. To know what is covered under a third party bike insurance plan, read below:
Injuries Caused to a Third Party
A third party bike insurance plan covers Injuries caused to a third party by the insured two wheeler. The two wheeler owner is responsible for paying for the injuries, so the insurer pays for it in case of a third party two wheeler insurance. The insurance covers the costs of treatment in case of bodily injuries. In case of disability, the Motor Accidents Claims Tribunal will decide the amount to be paid after careful consideration. In the case of partial disability, the compensation amount is paid as decided by the MACT.
Damages to the Two wheeler of the 3rd party
If the insured accidentally hits the third party's two wheeler, then the cost of damages is covered under the third-party bike insurance plan. The insurance company pays for the damages on behalf of the insured two wheeler's owner.
Accidental Death of the Third Party
Suppose the insured two wheeler runs over the third party or causes fatal injuries to the third party that leads to an untimely demise. In that case, the compensation amount will be paid to the third party by the insurance company. The amount of compensation that needs to be paid is decided by the MACT. The insurance company pays the total compensation to the heir of the third party on behalf of the owner of the insured two wheeler.
The insurance policy covers the damages or loss of property caused by the insured two wheeler. If the insured two wheeler rams into a property of the third party, like a lawn or a boundary wall, the compensation will be paid by the insurance company on behalf of the two wheeler owner. The insurance company covers the damages up to Rs 7.5 lakhs.
Therefore, these are all the situations that are covered under a third party plan. These situations can lead to financial losses if you do not have a valid instance policy in place.
What is Not Covered Under a Third Party Bike Insurance Plan?
Like different insurance plans, some typical situations are not covered under a third party insurance plan. These include:
- It does not cover the damages sustained by the insured two wheeler due to any natural or artificial disasters like fire, storm, malicious activity, terrorist activity while in transit by rail, road, air, inland waterways/ lift elevator, landslide, or rockslide, etc.
- Gradual wear and tear of the car or its parts.
- Damage to tyres or tubes due to oil leakage.
- Any accidental loss or damage when the insured is under the influence of alcohol or drugs.
- Consequential loss or damage to the two wheeler
- If a private car is used for commercial purposes.
- Driver without a valid driving license.
- Damage to the car due to nuclear war, radiation, etc.
- Any loss or damage when the policy is not in force.
Along with these exclusions, there can be other exclusions depending upon the insurer, so you must read the terms and conditions mentioned in the policy to know all the exclusions.
Why Choose RenewBuy?
Renew offers you a chance to get all the information regarding different policies offered by different insurers on one platform. You can compare plans, calculate the premium, buy a policy, and even renew the policy from the website within a few minutes. The advantages of using the Renewbuy website are:
The listings that you will find on the website are relevant and can be sorted based on your requirements. It is a transparent system where all the information is provided to the customer. You will see the listings based on your filters, enabling you to make the right decision for yourself.
You will get all the updated information about the policies from the website. The information is updated from time to time so that the customers can stay up to date with the changes in the market.
The easy and convenient way of using the website helps you speed up your time to compare the insurances. You can compare multiple plans from different insurers seamlessly and choose the plan that you like.
The needs of the customers are catered to by the company. If there is any query that you might have, then you can contact the customer service team. All your questions will be answered, and the process of buying a policy will become easier for you.
Thus, choosing Renewbuy for your insurance needs is a wise decision, and you will get all the information you need to decide on this platform.
How to Buy a Third Party Bike Insurance Policy Online?
Two wheelers are an essential part of everyday life for so many people. Buying a new third party bike insurance online is not a complicated process; in fact, it is straightforward. Anyone can buy a policy online by entering a few details, making the payment, and you can get the policy instantly in a few clicks. To buy an insurance policy, all you need is a smartphone or a laptop with an internet connection.
Buying a policy online is one of the most convenient things due to advancements in technology. You need the below-listed documents to buy the third party two wheeler insurance:
Invoice of the vehicle
Valid Driving License
The steps for buying a third party two wheeler insurance online include:
Visit the Renewbuy website (www.renewbuy.com)
Fill in the make and model of the two wheeler
Fill in the purchase year of the two wheeler
Click on the Instant Quote Button
You can also customize the policy according to the add-on covers that you wish to buy.
Compare plans, select, and pay for your desired policy
Thus, with these simple steps, you will have the policy with you in a few minutes. The whole process is easy and does not require too much time or effort.
Renew Third-Party Bike Insurance
Renewing your third party bike insurance policy on time is essential so that you can enjoy the benefits of the policy. Also, driving your two wheeler on the road without a valid third-party liability insurance cover is illegal, and you might have to face punishment if you do that. So, always renew your third party two wheeler insurance policy on time.
Documents Required for Bike Insurance Renewal
When renewing a policy, you can compare different third party two wheeler insurance policies available in the market. You can check the plans offered by visiting the Renewbuy website and submitting all the needed information. Going online saves time and effort, and several facilities are being provided online for potential customers to understand the policy thoroughly. Comparing and evaluating these plans helps you make an informed decision on the most suitable plan for you.
The documents that you need for the renewal of your insurance plan are:
- Registration Certificate.
- Driving License
- Previous year insurance policy
- Previous year insurance policy
- Any other documents that the insurer might need
Note: To make the renewal process even swifter, one must keep the documents mentioned above ready. Having these documents handy will help fill out the details required for renewal and making the payment.
How to Claim Third Party Bike Insurance?
You need to take a few steps if you want to file a claim under third party insurance. These steps are:
In case of death, the victim or heir of the victim (in case of death) can apply against the owner of the insured two wheeler for compensation.
Lodge an FIR
Once the application is made, you have to file an FIR with the policy and furnish all the information required by the policy. For receiving the compensation, keep the details of the FIR handy and the costs that the victim had to endure to get treated.
Contact the Motor Accidents Claims Tribunal
After the FIR is filed, the case needs to be taken to the MACT.
There is no limit to the compensation for claims under a third party two wheeler insurance policy. The insurer pays the compensation amount decided by the MACT. However, in the case of property damages, the upper limit of the claim amount is Rs 7.5 lakhs.
Therefore, this is the process that you need to follow if you wish to file a claim under a third party two wheeler insurance plan.
Documents Required to File a Claim
- Claim form (filled and signed)
- Original Driving License
- Registration Certificate of the Commercial Two wheeler
- Copy of FIR
- Receipt of the Tax Paid]
- Copy of identity proof like Aadhar Card
- Insurance Documents
How To Compare Insurance Policies Using Renewbuy?
The process of comparing policies on the Renewbuy website is simple. All you need to do is:
Go online and log on to the RenewBuy website (www.renewbuy.com).
Select your city and details about the commercial two-wheeler like its year of manufacturing, make, model, and variant.
Check the claim settlement history of the provider.
Select one of the providers that offer value for money pricing based on your preferences
The process is simple, and you will get the results in a few minutes. You can check the list of policies and decide the policy that suits your requirements.
A third party two wheeler insurance policy is essential if you want to drive your two wheeler on the road as it is mandatory under the Motor Two wheelers Act, 1988. It is essential to ensure that you have a valid insurance policy before driving your car so that you do not have to face a challan while you are on the road. Before buying a policy, it is essential to consider all the policy aspects and ensure that it suits all your needs. Moreover, you must check the inclusions and exclusions under your policy. Read the terms and conditions carefully so that you do not face any issues when filing a claim.