The IRDAI rules and regulations in the country are precise and extensive. All the two-wheeler insurance plans extended by the reputed insurance providers must adhere to IRDAI rules. If an individual owns two bikes, he or she must purchase two separate insurance policies for both bikes.
Since purchasing a third-party insurance policy is mandatory for riding bikes in the country, one must own such a policy on time to avoid hefty fines or imprisonment. Read on to know about third-party bike insurance in detail.
Why is it Essential to Purchase a Third Party Bike Insurance?
As per MV Act 1988, third-party insurance is a mandatory and effective insurance plan that extends necessary financial assistance for damages caused to any third-party vehicle or person. However, such policies will not provide financial support if the vehicle is damaged or stolen. In this regard, one can choose a comprehensive insurance plan as an alternative option offering coverage for own bike damage along with third-party damage.
Therefore, intending policy buyers must compare plans online and select the most affordable one that suits their requirements.
Inclusions of Third-Party Bike Insurance
Here are some of the inclusions of the third-party bike insurance plan:
- In case of any accident or damage caused to the third-party property or individual by the insured vehicle, the insurance company will provide approximately Rs. 7.5 lakh compensation to the injured individual.
- If you don’t own a personal accident cover, it can be added to a third-party bike insurance plan, thereby protecting you from the damages and losses incurred if you face physical injury/disability or death.
Exclusions of Third-Party Bike Insurance
Here are some of the exclusions of third-party bike insurance policies:
- This plan does not cover damages or losses incurred due to accidents, man-made natural disasters, theft, etc.
- In case of a drive and drive situation, this policy will not cover the damages caused to third party property or individuals. Moreover, policyholders can’t raise a third-party insurance claim if they do not have an authentic insurance claim.
Factors Impacting Third-Party Insurance Premium
The following factors play a significant role in determining third-party bike insurance premiums:
Age of the bike
The market value of the two-wheeler decreases as it gets older with time. Therefore, if the bike gets older, payable premium becomes less.
IDV is primarily a financial compensation paid by an insurer for any loss or damage that occurs to the insured vehicle. The IDV value is set based on the vehicle's current market value. However, if the IDV is higher, the premium will be higher.
If your bike insurance is not renewed on time, you can lose renewable discounts like NCB. This can significantly increase the payable premium. Therefore, it is always to renew bike insurance before it gets expires.
Performance enhancing modifications
Some bike owners modify their vehicles to improve their engine performance. These additional accessories or modifications may be expensive. Therefore, considering the cost of these additional components, the premium will be higher.
No claim bonus (NCB)
Just like the name, NCB is a discount provided by the insurer to the customers who do not make any claims during the policy tenure. By not raising claims and accumulating NCB, policyholders use this discount during policy renewal and pay lower premium.
How to Purchase Third-Party Two-Wheeler Insurance?
Digital transformation has made everything convenient and simple. If you are willing to purchase third-party bike insurance, you can do it within seconds. By visiting various online platforms, one can explore and compare different standard policies offered by reputed insurance providers.
Here are some of the simple steps to purchase it:
Step 1: Visit a credible website of an insurance provider
Step 2: Fill in the details by inputting the two-wheeler registration number and contact details
Step 3: Select ‘get quote’ option
Step 4: Key in essential information and select a bike insurance policy that suits your requirements
Step 5: Check third-party bike insurance price
Step 6: Pay premium amount
Your bike insurance policy will be purchased within a few hours. All necessary details regarding the purchase will be provided to your email ID. One can also renew their policies by inputting existing policy number, and following the same steps mentioned above.
The third-party bike insurance plan keeps one protected against all third-party liabilities. Therefore, if you own two or three bikes, you must purchase separate third-party insurances for the bikes as per legal mandate to secure your finances from third-party damages caused by the insured vehicle.