As per Section 146 of the Motor Vehicles Act of 1988, it is indispensable to get a third-party two-wheeler insurance for driving on Indian Roads. This provides safety for two-wheelers and helps in avoiding the risks associated with driving. Spending on the damages and injuries caused due to accidents can be financially cumbersome. You not only need to pay for your damages but also for the third-party property damage and injuries. This is when third party bike insurance comes handy.
Third party two-wheeler insurance covers the owner/driver of the vehicle against liabilities, property damages, and injuries/death caused to a third party due to the vehicle. The amount for the injuries/damages is paid by the second party (insurer) to the third party (injured). The first party (insured) need not pay for any legal liabilities or damages caused to the third party due to the accident.
Key Advantages of Third-Party Two-Wheeler Insurance Policy
Affordability
Compared to comprehensive two-wheeler insurance, third party bike insurance is more affordable. Also, the premium rates are comparatively lower as the insurance provides basic cover to the insured. The maximum tenor for third party two wheeler insurance plans is three years as per the IRDA (Insurance Development Regulatory Authority) guidelines. The policy premium cannot be increased during this three-year tenor.
Minimal Documentation
Since third party two-wheeler insurance does not cover the damages induced to your vehicle, there is minimal documentation process.
Quick Policy Purchase/Renewal
Third party insurance policies can be purchased as well as renewed easily using the online application/renewal procedure. Although if the insured vehicle is damaged outside the geographical barriers, you cannot claim for a third-party liability cover.
Security
You can get security for the damages caused by the uncertainties of the future. You will not be troubled by the legal liabilities, property damages, and injuries incurred to a third party as a result of some unfortunate incidents.
No Claim Bonus (NCB)
You are eligible to get the no claim bonus is you have not made any claim for one year. You can claim for your no claim bonus during the renewal of your policy. The insurer will offer you discounts on the policy premiums while renewing your policy. The NCB rate increases with every consecutive no-claim year. The maximum possible discounts provided with NCB is 50%.
Quick Claim Settlement
With one of the principal Non-Banking Financial Companies (NBFCs), Bajaj Finance, you get to enjoy quick cashless claim settlement through the network garages spread across India. The settlement period is minimized to give you a hassle-free experience. Also, you will receive a 24/7 assistance to update you about the status of your insurance claim. When you buy bike insurance online, you can track the claim procedure along with assistance from the company’s call centers.
Comprehensive Packages
You can also choose for comprehensive insurance packages. With this, you can opt for third-party two-wheeler insurance along with cover for the damages incurred to your vehicle. You can also enhance your comprehensive insurance package by choosing add-on covers. Some of the add-on covers are:
No Claim Bonus Retention
With an NCB retention cover, you can shield the NCB benefits even after making claims. Although, the number of claims you can make is limited.
Roadside Assistance
You can call your insurer for roadside assistance when you are stranded in some unknown place due to vehicle break down. Your insurer will help pick and drop you by the nearest garage.
Personal Accident Cover
With this cover, the owner/driver of the vehicle can get insurance claim of up to Rs. 1 lakh for the injuries/disability/death caused at the incident.
While browsing for the best bike insurance policy, make sure to check the advantages mentioned above and choose the one that gives you the desired benefits. Also, do not pay for the things you do not need, i.e., if you opt comprehensive covers, buy only those add-ons that you need.
