In India, third-party bike insurance is a requirement by law. To be able to drive a vehicle on Indian roads without inviting legal repercussions, all vehicle owners must have insurance coverage for their vehicle. One may be severely penalised if caught driving without a valid third-party insurance policy. But will third-party insurance be enough? Discover the benefits and drawbacks of this policy by reading about it.
What Are The Advantages Of Third-Party Insurance?
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Comply With The Law
As per the Motor Vehicles Act of 1988, third-party insurance is a requirement. To guarantee that they comply with the relevant local laws, all vehicle owners must have third-party insurance. If one is found driving without third-party insurance, they may be subject to jail time or hefty fines.
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Legal Liability
Third-party liability two-wheeler insurance shields a rider from financial responsibility for any harm done to a third party involving their scooter or bike. This policy will cover the liabilities of accidental property damage or third-party injury.
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Relief From Stress
One might experience stress after an unexpected accident because of financial loss and liabilities towards the third party. Third-party bike insurance provides mental peace by removing the financial burden of covering the damages you cause to a third party.
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Online Process
Insurance is also possible today, where almost anything can be purchased online. Third-party bike insurance can be easily bought online through websites or apps. The Bajaj Allianz two-wheeler insurance renewal of third-party insurance is also simple. *
Advantages Of Third-Party Bike Insurance
This policy covers the following events, also known as an “Act Only” policy, for the policyholder:
- Covers the policyholder for third-party damage, including third-party injury or passing away
- Protects a third party’s property from damage
- Comparatively speaking, third-party insurance is less expensive than comprehensive
- Less documentation and paperwork are needed because it is for a third party. Claims are subject to terms and conditions set forth under the two-wheeler insurance policy. *
Drawbacks Of Third-Party Bike Insurance
While third-party bike insurance online has many advantages, there are also some drawbacks. The following are some disadvantages of only having third-party insurance:
- Bike insurance for third parties only covers losses or damages to their people or property. This policy does not cover any losses or damages the policyholder or their vehicle suffered.
- The policyholder will be responsible for paying for covering personal repairs and damages in the event of an accident.
- This policy provides limited
- It does not cover for the possibility of the policyholder’s bike being stolen.
- The Insured Declared Value cannot be customised because it is set by the Insurance Regulatory and Development Authority of India (IRDAI). #
- No additional riders are available to improve the insurance contract.
- The law requires third-party insurance to help with legal liabilities, but this policy does not cover the policyholder’s damages. Comprehensive bike insurance is one such policy that addresses both third-party liabilities and personal losses. This policy is all-inclusive and offers the necessary level of coverage.
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* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
