Is Third-Party Two-Wheeler Insurance Really Useful?
Choosing the right bike insurance for your two-wheeler is crucial given the number of accidents that take place in the country. In India, it is mandatory to own third-party insurance, but, how useful and effective is this type of policy? Read further to understand this in detail
What is Third-Party Bike Insurance?
As the name suggests third-party insurance is a policy that covers third-party injuries or death and damage to property. This insurance cover is also a mandatory requirement as per Indian law. Not having valid third-party insurance can lead to heavy penalties or imprisonment of up to 3 months
Third-party insurance will help the policyholder pay compensation for the loss caused to the third party. The cost of compensation is decided by the Motor Accident Claim Tribunal (MACT) in case of death or injuries. The compensation for property damage can be up to Rs.1 lakh. If one has insurance, they need not pay from their pocket and secure their savings
Benefits of Third-Party Insurance
As per the Motor Vehicle’s Act, 1988, it is mandatory for all vehicle owners to have third-party insurance. Apart from being mandatory by law and meeting financial requirements, third-party insurance is useful for the following reasons:
In case of an accident, the policyholder would have to pay for the damages caused to the third party, pay for the legal fees along with the compensation. This can work out to be very expensive and one may not be able to cover this. Insurance companies make sure that one does not have to shell out from their pocket. Those with third-party insurance will be covered of legal liabilities towards third parties
Death or Disability
If a person involved in an accident causes death or permanent disability to a third party, it can be a shock for their family. One must pay fair compensation to the third party’s family to help them regain control over their life. The compensation in such cases can be very high but, third-party insurance will help one cover such costs
Accidents can cause major damage to the vehicle and serious injuries to people involved in the accident. The third-party damages caused due to an insured bike will be borne by the insurance company
Is Third-Party Bike Insurance Really Useful?
While third-party insurance covers the policyholder from liabilities towards third-party people, it does not cover expenses for the policyholder or the first party. In an accident, both parties involved will suffer damages and it is important to have a policy that covers both third-party liabilities as well as personal damages. Comprehensive insurance is a policy that meets both these requirements. Though third-party insurance has its advantages, it is not complete
While buying bike insurance, one must weigh their requirements and decide what type of policy they need. If one owns an old bike or if they do not use it regularly, third-party bike insurance will suffice. On the other hand, if one owns a comparatively newer bike and depends on that vehicle for daily commute, it makes more sense to buy comprehensive bike insurance. To know more about the types of insurance policies available, click here!