All About Third Party Bike Insurance

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All About Third Party Bike Insurance
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Introduction

• Section 146 of the Motor Vehicles Act, 1988 makes
  the third party insurance is mandatory by law in
  India.
• In a third party insurance, first party is the
  vehicle owner/insured. The second party is the
  company.
• The third party is any person who can claim
  compensation for the damages caused by your bike.

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Coverage Under Third Party bike insurance

• Death or bodily injury to the third party
• A third party bike insurance provides coverage
  for medical expenses in case of bodily injury.
• Provides compensation in case of death or
  physical disfigurement.
• Third party can also claim for loss of income in
  case if he/she is not able to work due to the
  sustained injuries.

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• Third Party Property Damage
• A third party two wheeler insurance covers
  property damages up to 1 lakh.
• Death of the owner or driver of the insured bike
• If the third party owner/driver dies due to an
  accident caused by your bike, then the dependents
  would be eligible to claim compensation for the
  sudden income loss.

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• Permanent total disability of the insured vehicle
  owner or driver
• If the owner/driver sustains permanent or total
  disability then they would be eligible to claim
  compensation for the same.

Type of disability of capital sum insured
Death, Loss of Two Limbs or sight of both eyes or one limb and sight of one eye 100
Loss of one Limb or sight of one eye 50
Permanent Total Disablement from injuries other than named above 100
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• Note Theres a limit on liability paid to the
  third party.
• The cover for third party property (usually the
  third party's bike or car) damage is capped at
  Rs. 2 lakh.
• Any cost that exceeds this limit is to be paid by
  the policyholder.
• There is no limit on liability for injury or
  death of the third party.

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How is Third Party Premium Calculated?

• The below insurance premium rates are
  standardized by IRDA with effect 1st April, 2017.

CONDITION RELATING TO ENGINE CAPACITY APPLICABLE PREMIUM RATE
Up to 75 cc Rs. 569
75- 150 cc Rs. 720
150- 350 cc Rs. 880
Above 350 cc Rs. 1,0191
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What is Not Covered in Third Party Insurance?

• A third party bike insurance does not provide
  coverage for the following
• Any damage to your own vehicle
• Accidental damage/loss/liability caused outside
  the prescribed geographical area
• Contractual liability claims
• Damages caused due to consequential loss
• Loss, damage, liability caused due to war or
  invasion
• Any liability caused directly or indirectly due
  to radioactive contamination or nuclear weapons.

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Process of Third Party Insurance for Bike Claims

• First call the police and inform them about the
  accident.
• File an FIR as it is a mandatory document to
  support your third party bike insurance claim
• Inform your insurance company about it between
  24-48 hours.
• Note down the names and numbers of the witnesses
  who are willing to support your claim.
• Collect photographic evidence, if possible.
• Collect the insurance details of the other
  parties involved.
• Register the case with the special Motor Accident
  Claims Tribunal court with jurisdiction over the
  area where the accident took place.

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Documents Required to Support Your Claim

• Original copy of the FIR.
• Copy of third partys policy documents or cover
  note as proof of insurance.
• Duly filled and signed claim form.
• Copy of driving license.
• Estimate for repairs from the service centre
  where the vehicle is to be repaired.
• Copy of the vehicles Registration Book (RC) and
  Tax Receipt.
• Repair bills and payment receipts after the job
  is completed.

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How to renew third party two wheeler insurance?

• You can renew third party two wheeler insurance
  online.
• It saves time, is convenient and the policy is
  delivered right in your inbox.
• Recommended Read Third Party Two Wheeler
  Insurance