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Two Wheeler Bike Insurance April 23, 2020
Third party insurance policy provides protection to the owner of the two-wheeler from the legal liability arising to any third party because of an accident which may lead to death, whole or partial disability, injury or property damage of any third party. The Motor Vehicles Act, 1988 mandatorily requires every vehicle owner to buy a third party liability insurance plan for covering any liability arising to the third person. It is legally not allowed to drive a two-wheeler without a valid third party insurance plan.
The insurance provider pays the damages and the liability arising due to an accident under third party insurance. Hence, the policyholder is financially shielded by the insurance company when any third party liability arises. The insurance companies offering third party insurance offer it to be brought as well as renew online for ease of the customers. The third party insurance for two-wheeler can be purchased and renewed from the official website of the insurance company.
Table of Contents
Coverage of Third Party Insurance
Third party insurance policy mainly covers all the liability arising to the third party legal liability and it also covers any damages caused to third party property as well as a cover of the owner’s personal accident. The insurance company has unlimited liability under the third party insurance arising to the third party due to an accident which may result in death, injury or disability of the third party. The insurance provider also pay damages to the third party in case of any damaged caused to the property of the third party but here the liability is limited.
Features of Third Party Insurance plan
Third party insurance plan mainly provides coverage to any third party involved in an accident with you. Third party insurance plan has the following key features:
- The premium to be paid for third party insurance plans is determined according to the capacity of the engine of the two-wheeler.
- The premium on the third party insurance will be higher if the cubic capacity of the two-wheeler is higher.
- For two-wheeler brought before 1st of September, 2018 the term of the third insurance plan is one year and for two-wheelers brought on or after 1st of September, 2018 the term of the third party insurance plan is five years.
- The third party insurance plan does not provide coverage or damages caused to the two-wheeler of the policyholder.
- Third party insurance is very easily available both offline as well as online. It can be purchased or renewed anytime from anywhere with ease.
Benefits of Third Party Insurance
You have to get third party insurance as it is mandatory by law. However a third party insurance plan has numerous benefits to offer. The benefits of the policy are stated below:
- The legal mandate of the Motor Vehicle Act is fulfilled by buying third party insurance plan. You will also not have to worry for any police fines, penalties or charges if you are caught.
- The premiums to be paid on third party insurance plans are fixed by the Insurance Regulatory Development Authority of India (IRDA) and are very low and affordable. Third-party insurance is the cheapest insurance plan you can buy. The premium as it is fixed by the IRDA is fixed and same for all the insurance companies.
- Third party insurance is a liability only insurance plan that provides you with peace of mind as it makes you from the financial stress and burden arising to the third party.
- The third party insurance saves you from the implications of finance when any third party damages or liability arises by paying the damages to the concerned third party thereby saving you from the trouble of finance and acting as a financial pillar.
Insurance Regulatory Development Authority of India (IRDA) fixes the premium amount to be paid for the third party insurance plans which are stated as follows. The premium amounts of two wheeler stated is in effect from 19th June 2019.
| Cubic Capacity of Two Wheeler | One year premium amount (for two wheelers brought before 1st September, 2018) | Five year premium amount (for two wheelers brought on or after 1st September, 2018) |
|---|---|---|
| Not Exceeding 75cc | Rs 482 | Rs 1,045 |
| Exceeding 75cc but not exceeding 150cc | Rs 752 | Rs 3,285 |
| Exceeding 150cc but not exceeding 350cc | Rs 1,193 | Rs 5,453 |
| Exceeding 350cc | Rs 2323 | Rs 13,034 |
Conclusion
Third Party Insurance online for two-wheeler can be brought from the insurance companies’ official website. Accidents can take care of anytime and it may give rise to high liability and damages to the property of the third person or to the third person himself. In such a case, you will have a huge financial outflow. Then you will save the financial problem through your third party insurance plan and will be free from the liability.