Third-party bike insurance is the most economical insurance plan. It covers the policyholder against damages caused to the third-party property. If you are planning to buy a bike, then read this article to find out how you can purchase third-party insurance.
Third-party bike insurance is a policy that provides financial assistance to cover the damages caused to the third-party property in case of an accident. Apart from being must-have insurance policy for all bike owners, third-party insurance is a mandatory requirement by law. As per the Motor Vehicles Act, it is also illegal to drive a bike without valid third-party insurance, and it is a punishable offence.
With that in mind, here are a few benefits that third-party insurance offers-
- Covers Third-party Liabilities
If an insured person collides with another property or vehicle, then the insurer will pay for the third-party property damages. However, there is a limit on the coverage amount (to the extent of the sum assured of the policy minus the deduction). If a third-party gets injured, then this policy also covers his/her medical treatment.
- Lower Premiums
As compared to a comprehensive policy, the cost of third-party insurance for two-wheeler is much cheaper. This is one of the main reasons why many bike drivers prefer buying a third-party insurance plan.
The Process to Buy Third-party Insurance
The process to purchase a third-party bike insurance plan is easy. Follow the below steps to complete the purchase-
- Compare Policies
Many insurance companies offer third-party bike insurance plans. Hence, you must review different policies before buying one. Selecting a plan without comparing multiple policies can prove costly in the future.
- Select the Most Affordable Policy
Once you compare a variety of policies, you will get to know about the most affordable plans. Hence, you can select a policy that fits in your budget.
- Submit Necessary Documents
The next step to purchasing third-party bike insurance is to submit the essential documents. To ensure a hassle-free experience, make sure all the documents are authentic.
- Pay the Premium
The final step of this process is paying the premium. You need to select a payment mode and enter all the necessary details.
The Cost of Third-party Insurance for Two-wheeler
Most insurance companies consider the vehicle CC (cubic capacity) as one of the important factors to determine third-party insurance premium rate.
|Bike’s Engine Capacity||Premium Rates|
|Below 75CC||Rs. 482|
|Between 75CC and 150CC||Rs. 752|
|Between 150CC and 350CC||Rs. 1,193|
|Above 350CC||Rs. 2,323|
Note – The cost listed above is only for illustration purpose. The premium rate may differ from insurer to insurer.
Documents Required to Purchase or Renew Third-party Insurance
- Registration Certificate of the Two-wheeler
- Current Policy Number (In case of policy renewal)
- Engine Number
- Chassis Number
- Bike’s Manufacturing Date
- City and Date of Purchase
- Address and Contact Information
Make sure these documents are authentic. If not, then you may not be able to purchase a third-party insurance policy for your bike.
The Exclusions of Third-party Insurance
- The insurer will not provide cover if any individual other than the owner was driving the bike.
- Any liability caused by radioactive contamination or a nuclear weapon will not be covered.
- Damage, liability, or loss caused due to war, invasion, or warlike operations will not be covered.
- If the driver rides without a valid driving license, then the insurance company will not offer any cover for the damages.