Advantages of Third party two wheeler insurance

For all those people who own a two wheeler, they are aware that it is mandatory to own a third party two wheeler insurance policy as well as per the Motor Vehicles Act, 1988. For many the phrase ‘third party’ is new and they do not understand it. Let us first talk about, what exactly is third part insurance in your two wheeler insurance. It is known that accidents do not come announced and can happen at any place and at any time. When an accident happens, it can cause loss or damage a third party person or property. This arises liability for the vehicle owner and in these situations, third party two wheeler insurance takes care of all the liabilities.

Difference between Comprehensive and Third party Insurance Policies

There are many who do not understand that comprehensive insurance is not the same as third party. The former takes care of third party claims along with own damage thus, covering any liability to third party and damage to the vehicle unlike the latter. It is always recommended to take a comprehensive insurance as that takes care of the cost of repairs and replacement of vehicle in times of an accident. However, comprehensive insurance for your two wheeler is not mandatory and thus, each vehicle owner has a choice to take it or not. On the other hand, as mentioned above, third party insurance is compulsory.

Advantages of Third party two wheeler insurance

Though it is recommended to have a comprehensive insurance, there are many advantages of having third party two wheeler insurance as well. Let us talk about some of them:

1. Reduces Financial Stress

If there is any injury or death to a third party in an accident in which the two wheeler is involved, the policy takes care of the liability and provides protection.

2. Easy to Buy

There is not much paper work involved when buying third party insurance and thus, buying the policy is very easy and hassle free. As the policy does not cover any loss or damage to the two wheeler, there is minimal documentation needed.

3. Affordable

The premium that the insurance company charges for a third party two wheeler insurance is drastically less when compared to comprehensive insurance.

4. Peace of Mind

There is no certainty when it comes to assess the liability involved towards a third party in case of an accident. Thus, when you have a valid third party insurance, you can ride your two wheeler with complete peace of mind.

Coverage of Third party Two wheeler Insurance

Under the following conditions, a third party two wheeler insurance policy comes in to force:

1. Bodily Injury or Death to Third party

If at any time, any third person meets with an accident and the two wheeler is involved in the same, he has the right to claim for the medical expenses for treatment of his injury if they are not in a position to work and there is loss of income. Also, if there is any physical disability, it is the liability of the two wheeler owner to compensate for the same. All these liabilities and expenses are covered by a third party two wheeler insurance policy.

2. Property Damage to Third party

If there is any damage to a third party due to your two wheeler it can be a very exhausting process, both financially and mentally. As per the rules of the Insurance Regulatory Authority of India, damages of up to Rs.1 lakh are covered for any property damage of a third party.

3. Death of the Driver or Owner

If there is an accident which causes death of the owner of the two wheeler or the person riding the bike, there will be a sudden loss of income. The insurance company in such a case provides compensation and the dependents get the amount they are eligible for.

4. Permanent and Total Disability

The driver or the owner of the two wheeler can sustain permanent total disability in an accident and in these times they are eligible to claim for compensation under the two wheeler insurance policy.

In the above two cases, death or loss of both eyes, both limbs or one eye and one limb, gives a compensation of 100% of the sum insured. Loss of one limb or loss of sight of one eye gives 50% compensation. 100% compensation is given in case there is a permanent total disability for any reason not mentioned above.

Third party insurance for your two wheeler will not cover any damage or loss to the car. It will also not cover any accident outside the geographical area covered under the policy. If there is any contractual liability and a claim arises due to the same, it will not be covered under the third party insurance. Also if there is a loss due to a warlike situation or a war, radioactive contamination and nuclear weapons, there is no coverage under the third party two wheeler insurance policy.

Why to buy a two wheeler insurance policy?

There are many people who do not like to buy two wheeler insurance but the consequences of not having it are scary and can cause a huge problem. If there is any financial constraint it is affordable to have third party two wheeler insurance and this is a policy that every two wheeler owner must have.

Third party two wheeler insurance is a must but it must be kept in mind that if there is any accident outside the geographical limit mentioned in the policy, the insurance policy becomes invalid. All insurance companies provide insurance for two wheelers and with umpteen choices available, everyone must have a policy. Rates for the third party insurance have been set by the government and thus, there is no question of different companies charging different premiums.

Advantages of a two wheeler insurance plan

There are many advantages of third party two wheeler insurance though, it is always advisable to have a comprehensive insurance for the vehicle as that takes care of all losses and damages. However, having a third party insurance is essential and comes in very handy at the time of an accident which causes damage or loss to the third party. Ensuring that there is a valid insurance for the two wheeler at all times is essential and thus, utmost care must be taken to ensure that there is an active policy and it is renewed from time to time.

Hi this is Somesh from Mumbai. I am working with the one of the leading online insurance broking firm as a customer relationship manager. I like to discuss with customer to solve their problem and queries. More Peoples still unaware about insurance