Third-party liability bike insurance is required for bike owners. Let’s define “third-party liability insurance” in this article. We’ll also examine its benefits.
Definition of third-party insurance
Third-party insurance covers financial losses from injuries to other people, vehicles, or property. The Motor Vehicles Act 1988 requires all vehicle owners to have third-party liability insurance. This and two-wheeler insurance in India are covered on our other blog.
Third-party liability insurance benefits
Experts recommend comprehensive bike insurance, but third-party liability insurance has its advantages.
- If your bike crashes, this policy covers third-party passing away and injuries
- Because it doesn’t require much paperwork, buying third-party insurance is easy. The main reason is that this policy does not cover vehicle losses (damage or theft)
- An exclusive third-party bike insurance costs much less than comprehensive insurance
- Because third-party liability liabilities are uncertain and unlimited, buying a policy gives you peace of mind. Thus, you can concentrate on your ride without worrying about the police or the possibility of causing third-party damage
What’s Covered By Third-Party Liability Insurance?
This policy is called “Act only.” It addresses the following.
Passing away or bodily injury to a third party
An accident can permanently disable the victim. It can cause the untimely passing away of the third party. This policy covers the victim’s medical expenses. Since the victim cannot work, they can claim loss of income expenses. The insurer pays.
This policy covers damage to third-party property
Third-party property damages are limited to Rs 1 lakh.
Passing away of the owner/driver
If “owner-driver PA cover” was taken (a separate but cost-effective insurance policy), the dependents of the insured vehicle’s owner/driver receive compensation if they pass away in a two-wheeler accident.
The owner-driver PA cover compensation formula is as follows
If you pass away or lose both eyes or two limbs, you get 100% of the sum assured.
The claim is 50% if you lose one limb or eye.
It requires a valid driving licence and RC registration.
What doesn’t third-party liability insurance cover?
This bike insurance does not cover the following events.
- Your bike’s damage
- Activities outside the policy’s geographical area that cause harm or liability
- Claims for contractual liability
- Loss from war, warlike situations, nuclear weapons, and radioactive contamination
Third-party liability insurance: what are its benefits?
Third-party property and life damage coverage
If the owner/driver PA cover is purchased separately, it covers the owner/driver’s disability or passing away.
Low premium compared to other policies
Easy documentation because it doesn’t require owner’s insurance
What are the drawbacks of third-party liability insurance?
Not liable for vehicle damage or theft
If a vehicle is damaged, the owner must pay for repairs
There’s no room for extra coverage.
How much is third-party liability insurance?
Two-wheeler third-party motor insurance premiums changed on April 1, 2018. Premiums vary by engine size.
Vehicles up to 75 cc – Rs 427
Vehicles up to 75–150 cc – Rs 720
Vehicles up to 150–350 cc – Rs 985
Vehicles above 350 cc – Rs 2323
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.