What is 3rd party in bike insurance


24 Jul 2023

3rd party bike insurance and how this feature can benefit your two wheeler

The Motor Vehicle Act, under the direction of the Government of India, enforces compulsory motor insurance for all vehicle owners. You are legally obligated to have third-party insurance coverage if you own a bike or any other two-wheeler. This is a crucial method to safeguard citizens against financial & physical damages that may occur to persons as well as their vehicles in case of an unanticipated road accident or other adversaries such as theft.

Making this method of protection more beneficial, motor insurance policies come with the feature of covering 1st, 2nd, and 3rd parties that may be involved in a road accident. Here, we shall introduce you to 3rd party bike insurance and how this feature can benefit you.

While driving on the road, one is liable for their own as well as others’ safety. Third-party insurance cover is offered as a part of a two-wheeler insurance policy to support you with such liability. This is a very basic type of bike insurance policy that protects you against financial losses and damages that could be caused to a third party involved in an accident with your bike/two-wheeler.

For example, imagine that you are on a bike ride, and your vehicle accidentally collides with a pedestrian. The accident causes damage to your bike along with injuring you and the other person. Now, this person may demand compensation for any losses he may suffer due to the collision.

This is the kind of situation where third-party insurance can save you. Under third-party bike insurance, any financial claims that the injured person shall raise will be covered, protecting you from the stress of any financial burdens.

Important facts about third-party insurance cover

Firstly, it must be noted that third-party insurance is compulsory to have as per the Motor Vehicles Act of 1988.

Third-party bike insurance covers you against the third party facing any physical injuries, property damage, or death. The medical and hospital charges for the third party’s treatment shall be covered under this insurance policy. However, the amount that is compensated under this policy varies according to the situations and terms of different insurance providers.

Expenses due to any legal implications that the third party may raise against the policyholder shall also be covered under a third-party insurance policy.

Third-party insurance cover shall only be provided by the insurance provider if the bike owner has a valid bike insurance policy, a valid driver’s license, and was not breaking any traffic rules before the accident took place.

Third-party bike insurance shall not cover the following:

• Damages caused to the policyholder’s vehicle

• Damages caused to a vehicle that is outside the policy’s geographical limit

• Damages caused due to nuclear weapons, radioactive contamination, or war

However, these features may also differ among various insurance providers. You can discuss with your provider about benefits that their third-party insurance policies provide. Make sure to have one before you get your vehicle on the road!

Visit Kotak General Insurance for More Information

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.