Home » Beyond Accidents: Understanding Third-Party Liability Insurance For Bikes

Beyond Accidents: Understanding Third-Party Liability Insurance For Bikes

by Jocelyn

As a responsible rider or owner of a two-wheeler, ensuring the safety of yourself and others on the road is paramount. In adherence to the Motor Vehicle Act 1988, every bike owner must maintain a current third-party bike liability insurance policy. Riding without valid insurance can lead to heavy fines and potential jail time.

Defining Third-Party:

In bike insurance, the insurance company is the first party, the policyholder is the second party, and the third party can be anyone or anything, including pedestrians, bicyclists, drivers, commercial vehicles, passengers, or property owners. This distinction is crucial as it forms the basis of third-party bike insurance online.

Third-Party Bike Insurance Coverage:

Third-party bike insurance is designed to cover any harm or damage caused to a third party in the event of an accident. The coverage is governed by terms and conditions that vary among policies and insurance providers. Importantly, it does not cover any harm to the policyholder or their vehicle. *

Coverage Details:

The coverage under third-party bike insurance includes:

  • Demise or bodily harm to a third party.
  • Damage to another person’s property.
  • The untimelydemise of the insured vehicle’s owner or driver (if the policy includes a personal accident component). Claims are subject to terms and conditions set forth under the motor insurance policy.

However, the amount of compensation may vary based on the circumstances and the chosen insurance company. The insurer will only pay if the rider has valid online bike insurance, a proper driving license, and adhere to fundamental traffic laws; otherwise, the claim may be denied.

Exclusions From Coverage:

There are specific exclusions commonly found in third-party policies, such as:

  • Harm to the policyholder’s vehicle.
  • Damages occurring outside the policy’s geographic parameters.
  • Damage or loss caused by nuclear weapons, radioactive contamination, or war.

Understanding these exclusions is essential for a comprehensive grasp of the coverage limitations.

Premium Calculation:

The premium for third-party bike insurance is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). It primarily depends on the two-wheeler’s engine capacity. Notably, a recent Supreme Court ruling mandates long-term third-party insurance, requiring a minimum validity of five years for first-time customers, replacing the previous one-year policy option. #

Acquiring And Renewing Third-Party Bike Insurance:

The process of obtaining and renewing third-party bike insurance can be done online or offline, depending on the chosen insurer. Online transactions are known for their simplicity and speed. To purchase or renew, necessary details such as name, age, birthdate, profession, gender, and relevant documents like driver’s license and registration certificate are required. Bike insurance renewal involves providing information about the existing policy and the previous insurer if switching to a new one. Make sure you carry out the process of Bajaj Allianz’s third-party two-wheeler insurance renewal on time. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Riders can confidently acquire the necessary coverage if they comprehensively understand third-party bike insurance. Regardless of the chosen policy, selecting a reputable insurer and thoroughly reviewing all inclusions and exclusions before finalising the transaction is crucial. This proactive approach ensures responsible and secure riding practices while fulfilling legal obligations.

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*Standard T&C Apply

#Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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