Here’s why 3rd party bike insurance is mandatory for your two-wheeler

Here's why 3rd party bike insurance is mandatory for your two-wheeler

Third-party insurance covers the liabilities of the third party if the insured is accountable for the third party damages. This insurance protects the insured from the legitimate obligations raised by the third party.

The 3rd party bike insurance doesn’t cover any personal liabilities of an insured. However, it provides you with financial assistance for all those damages caused by your two-wheeler to the aggrieved party’s vehicle, property, or any physical damage. It differs from the comprehensive insurance policy, where it covers the liability of both the vehicles of the insurer and the third party.

Adhering to Section 146 of the Motor Vehicles Act (MVA), 1988, the government has made it mandatory to purchase 3rd party bike insurance. If the parameters set by the insurer are not sufficient to cover the actual loss of the third party, then additional expenses would be borrowed by the insured. For knowing the other information regarding 3rd party bike insurance policy, you can also click on https://www.turtlemint.com/two-wheeler-insurance/third-party-bike-insurance.

Reasons for making 3rd party bike insurance mandatory

The steps were taken by the government based on the following reasons:

To compensate permanent total disability of insured two wheeler’s driver/owner: Under third party insurance, the insured gets the coverage for the driver or owner of that two wheeler’s medical claim. If they face any permanent disability due to an accident, the insured can ask the insurer to compensate for their losses.

Reimbursement of property damage to the third party: As per IRDA rules, if any damage occurs to the third party’s property by the insurer, compensation up to Rs. 1lakh would be given, provided, the damage is caused by the insurer.

Bodily injuries or third party death: If any injury or death causes loss of income to the third party, this liability would be faced by the insurance company. Whether it’s a medical expense or a loss of income due to death or physical disability, both will be tried to get compensated under this insurance if this trouble is caused due to the insurer’s fault.

Liabilities that are not covered under third party bike insurance policy:

  • If the damage is caused due to warfare or due to any radioactive contamination.
  • Any application for the liabilities which are not covered under the policy.
  • A loss to the insurer vehicle.
  • Any damage caused out of the geographical area, which is not mentioned in the policy contract.

Documents required for third party bike insurance renewal

  • Online payments like net banking, debit card options are available.
  • For reference, you need to provide existing policy documents.
  • Your bike registration certificate will be required.

The third-party two-wheeler policy was made compulsory on the recommendation of the Supreme Court. On the basis of road safety, the court amended the rule to pay an extra premium for the third party for five years by the insured as it was evaluated in the year 2018 that approximately one lakh people were dying every year in a road accident. It was a matter of concern that only some vehicles were insured under third party two-wheeler insurance. Due to this, most of the road accident victims were not getting compensation for their medication. In case of death, the aggrieved party’s nominee didn’t get any indemnity for their loss of income. These incidents helped form a committee, which later on formed the regulation to help the citizens be safe and responsible.

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