The Essential Guide To Third Party Insurance For Bikes

Two-wheelers are popular in India due to their convenience, low maintenance expenses and affordability. However, there are millions of road accidents that occur each year in the country.

Thankfully, the regulatory authorities have made it compulsory for bike owners to avail of third-party two-wheeler insurance. You must have brought the insurance coverage when you purchased the bike. However, do you know about the inclusions, exclusions, limit of the liabilities and the claim process?

Here is a complete guide on third party insurance for bike.

The first party to the policy is you (the owner) and the second party is the insurer. The third-party may be any individual who files a claim for the liability arising due to an accident involving your bike.

As the owner, you are liable for injuries or damages to third parties or their properties caused in an accident involving your bike. Similarly, if you or your property suffers from any damages or loss due to another individual, you may file a claim against his insurance service provider.

Coverage under third-party insurance :

• Bodily Injury

• In case of bodily injuries to a third-party, he may file a claim to cover medical costs or loss of earnings if you are unable to work due to these injuries. The injured may also claim compensation for physical disfigurements.

• Damages To Third-party Property

• If there is any damage to property, a surveyor needs to submit his report along with the inspection report to determine the value of the loss. Additionally, you need to submit all original bills from an authorised centre. Once all these are received, the insurance company will process the claim.

• Owner/Rider Death

• In case of death of any individual due to the accident, the deceased's dependents may file for compensation arising due to loss of income. In case, the person incurred medical expenses to treat his injuries prior to his demise, a claim may also be filed. Third-party insurance also covers liability arising due to the permanent total disability of the owner or the rider.

Exclusions of third-party cover

Third-party bike insurance does not cover the following:

• Regular wear and tear
• Damages resulting from an accident occurring when the rider does not own a valid license or is under the influence of alcohol or drugs
• Mechanical or electrical breakdown
• Burglary or theft of accessories if the bike is not stolen
• Liability arising due to riding the bike for any reason other than the intended purpose
• Wear and tear of consumables such as tubes and tyres

Premium calculation

The premium is standard for all third-party bike insurance because it is fixed by the regulatory authority. The difference in the premium may be due to the engine capacity, which means you pay more for a bike with higher capacity and vice-versa. You may check the premium using a bike insurance calculator.

Claim procedure and requirements

The entire procedure to file a claim under the insurance policy is hassle-free and quick. If you are involved in an accident, you would like to avoid a long and tedious process for filing the claim and ensure you do not have to go through a lengthy documentation requirement.

You may either opt for a cashless facility or may file a claim through phone assistance. The entire procedure is completed in four quick and simple steps as listed under:

• Register the First Information Report (FIR)at the closest police station
• Inform your insurer
• Click pictures for future use and get the details of witnesses, if any
• Send your bike for repairs
• Submit the following documents for claim settlement
  • FIR copy
  • Insurance proof
  • Duly completed claim form
  • Driving license
  • Estimated repairs costs
  • Registration book and tax receipt copies
  • Repair bills post completion of the repairs

You must provide all the relevant factual details to ensure your claim is not rejected due to false information.

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