Can A Third-Party Bike Insurance Policy Provide Sufficient Coverage?

Written by Kelsey Lacey

Insurance is a vital tool for reducing financial liabilities that may arise if your bike sustains damage or is involved in an unfortunate accident. However, as necessary as having a bike insurance policy is, having the right amount of bike insurance coverage is also essential.

The compensation you are eligible to receive under your bike insurance policy is determined by the bike insurance coverage selected at the time of plan purchase. Let’s first understand the different bike insurance types. The two types of two-wheeler insurance in India are listed below:

  • Third-party bike insurance: When riding a two-wheeler on Indian roads, you must have a third-party policy that provides the bare minimum of protection. It protects you from third party liabilities resulting from a third party person being injured or having their property damaged while you are riding the bike.
  • Comprehensive bike insurance: The comprehensive bike insurance policy extends protection. It protects your motorcycle from third-party liabilities as well as damage caused by accidents, man-made liabilities, riots, theft, and natural disasters.

* Standard T&C Apply

What exactly is third-party bike insurance?

Third-party coverage may be one of the most fundamental types of two-wheeler insurance. Its design protects you from any third-party obligations caused by accidents involving your bike. Third-party two-wheeler insurance is required for all two-wheeler owners in India to comply with the Indian Motor Vehicles Act of 1988.

Suppose you accidentally collide with another bike. In that case, your third-party bike insurance coverage may pay for the third party’s losses. It may not, however, cover losses or damages to your bike. When it comes to personal safety, third-party insurance may not cover your injuries. Furthermore, third-party insurance does not cover damage that occurs outside the policy’s geographical boundaries or as a result of war.

Purchasing third-party insurance and supplementing it with a personal accident policy could be the best way to ensure your safety. Keep them in mind when purchasing a new bike insurance policy. The personal accident cover ensures your safety, not the safety of your bike. Suppose you sustain severe injuries in an accident. In that case, you may be compensated under the terms of a personal accident policy. If something unfortunate were to happen to you in an accident, then your nominee may receive a compensation amount. * Standard T&C Apply

Is the premium for third-party insurance coverage expensive?

Usually, the cost of third-party motorcycle insurance could be less than that of a comprehensive policy. It may be high if you ride a bike with a higher capacity motor. The motorcycle’s engine capacity (CC) significantly affects the insurance rate. * Standard T&C Apply

Is Third-Party Coverage Enough?

If you are purchasing a new motorcycle, it would be preferable to protect it with comprehensive insurance coverage rather than third-party coverage. If your bike is damaged in any way, you can file a claim and have it repaired for a reasonable price. However, if your bike is more than five years old, it would be best to choose third-party coverage. The IDV of a motorcycle depreciates by 50% in the first 4-5 years. * Standard T&C Apply

Third-party bike insurance is available both online and offline. It is now preferable to purchase from a digital-only insurer online. They have the potential to reduce the cost of your insurance coverage significantly. In our experience with Bajaj Allianz two wheeler insurance, third party claims are hassle-free and customer friendly.

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.

About the author

Kelsey Lacey