Two wheeler insurance protects you and your bike against losses and injuries brought on by any unfavorable occurrence on the road. On the other hand, you could disregard the significance of a third-party bike insurance plan that is affordable for you. A third-Party bike Insurance policy is designed to protect you against damages (including injury or death, bodily harm, and damage to property) to a third-party person/vehicle/property.
The Motor Vehicles Act of 1988 mandates that all two-wheeler owners carry at least third-party bike insurance. If you don’t, you risk receiving a traffic ticket. Heavy fines and even imprisonment could result from riding without current insurance. You should make an effort to comprehend what third-party two-wheeler insurance is and how it operates if you are purchasing it for the first time.
Benefits of a Third-Party Bike Insurance
Here is the list of the benefits of choosing a third-party bike insurance policy.
#1: Financial Assistance
One of the biggest benefits of choosing the right third-party bike insurance policy is that you won’t face any financial burden. You are shielded from third-party liability when you insure your two-wheeler with third-party bike insurance. The full cost of the damages need not come out of your pocket. Additionally, the insurance will support you if third-party losses result in legal repercussions.
#2: Peace of Mind
Accidents can occur at any time and cause trauma, particularly if a third party suffers a loss and you are compelled to pay the associated costs. As a result, you are relieved of mental stress when you have third-party insurance because the insurance company will take care of all the financial obligations to the third party instead of you.
#3: Adherence to the Law
According to The Motor Vehicles Act of 1988, all vehicle owners are required to carry at least 2-wheeler third-party insurance, and failing to do so would result in penalties. You abide by the law by using this plan to insure your scooter or bike. On Indian highways, operating a two-wheeler without insurance is a crime that carries fines of up to Rs. 2,000 for a first offense and up to Rs. 4,000 and/or up-to 3 months in jail for a second or subsequent offence. However, you may quickly cover your bike if you want to renew your Third-Party Two-Wheeler Insurance online.
#4: Quick Paperwork
Your bike is not covered by the bike cover from a third party. As a result, there is less paperwork to complete, which happens quickly. You only need to wait a short while and spend a good number of hours doing the formalities. Therefore, the method also saves you a ton of time and work.
If you think, buying third-party two-wheeler insurance may cost you more, then you are probably mistaken! Third-party bike insurance offers the greatest benefit at the lowest price. Since IRDAI regulates all third-party insurance premiums, the premium rates are both alluring and reasonable.
Difference Between Comprehensive and Third-Party Bike Insurance
|Basis of Comparison||Comprehensive Bike Insurance Policy||Third-Party Bike Insurance Policy|
|Definition||A comprehensive two-wheeler insurance plan that covers both your own bike’s damage and third-party damage to other people’s property, vehicles, or other moving objects.||A fundamental bike insurance plan that addresses the monetary and legal obligations resulting from third-party property damage caused by your insured bike.|
|Coverage Details||The legal and financial third-party responsibilities, bike damage, and personal accident coverage for the owner-driver are all covered by comprehensive bike insurance.||A third-party bike insurance policy protects against bodily harm to or death of a third-party individual, as well as damage to their property or vehicle.|
|Add-on Covers||With add-ons, the complete insurance coverage can be improved.||A third-party bike insurance coverage cannot include add-ons.|
|Premium Amount||Due to the substantial coverage they provide and the value of the add-on covers, comprehensive bike insurance premiums are costly.||Since the IRDAI sets and standardises the rates, the cost of third-party two-wheeler insurance is minimal.|
|Costs||The third-party premium (which is set by IRDAI) and the own damage premium make up the premium for a comprehensive insurance policy. Its premium is more expensive than third-party insurance due to the increased coverage.||Third-party insurance is less expensive. The cost of third-party bike insurance plans is set by the insurance regulator, IRDAI.|
|Suitability||This policy provides more complete protection.||This policy provides only basic protection.|
How Does Two-Wheeler Third Party Insurance Work?
A third-party two-wheeler insurance coverage offers the first party financial and legal defense against losses incurred by a third-party person or property as a result of the insured bike.
Let’s understand it with an example!
A man, named Rohit, who owns an Apache RTR 180cc bike is riding a bike on the road and while going to the market, a person crossing the road (third-party) gets injured caused by the insured person.
If Rohit owns third-party bike insurance, then his policy will cover the costs of all the medical expenses and hospitalization bills arising therefrom. Also, the policy also covers the disability claims resulting from the injuries caused to a third-party person as well as the claims associated with their death (if it happens) in the said accident.
It is advised to purchase third-party insurance for your two-wheeler online because it is legally required to have a current third-party bike insurance policy.
Base Premium of Third-party Bike Insurance Policy
As per the new guidelines laid down by the government, the third-party bike insurance rates per year for more than three-year-old cars and five-year-old two-wheelers are:
Not exceeding 75cc – Rs 482
Exceeding 75cc but not exceeding 150cc – Rs 752
Exceeding 150cc but not exceeding 350cc – Rs 1,193
Exceeding 350cc – Rs 2,323
Factors That Affect the Third-party Bike Insurance premium
The following are the factors that may significantly impact the premium of your third-party bike insurance.
- Bike Type and Price
The cost of each two-insurance wheeler varies, just as the cost of each vehicle. One of the elements taken into account by insurance firms when determining insurance premiums is the vehicle’s cubic capacity (cc). The insurance rate will be higher the more powerful the engine.
The Indian markets provide a wide selection of expensive bikes. The high-end motorcycles cost more than any other bike on average.
- Devices to Prevent Theft
Installing security devices that have received certification from the Automotive Research Association of India might result in reductions from several insurance companies (ARAI). It suggests that your bike insurance rate will be lower if it has approved safety equipment because contemporary technology reduces the likelihood of bike theft and loss, lessening insurance companies’ obligation to pay out compensation.
- The Bike’s age
The age of a bike is also taken into account when determining the cost of insurance. This is the reason that every insurance portal asks you to enter the age of your bike when you purchase a bike insurance plan in order to provide policy pricing. A new bike will have a higher premium than an old bike because the former has a higher market value than the latter.
- Rider Particulars:
The premium amount is also influenced by the rider’s age, riding background, and gender. A male applicant with five or more years of riding experience will pay a lesser rate than a male applicant with only one year of experience since insurers favor stability and security.
- Add-on Covers:
The amount of additional coverage you decide to get will affect the premium you must pay. Although add-on covers give you protection from situations that your standard insurance does not cover, they are not free. Reduce your premium ceiling by carefully selecting the add-on coverage to make sure you only pay for what you need.