Breaking Down Insurance Terms: Third-party Bike Insurance

The government has made it mandatory for all bike owners to purchase a third-party bike insurance policy. So if you already own a bike and want to know what this Third-Party insurance means and what exactly does it include, then continue reading.

Any party who can file a claim for compensation for injury and damage caused by your bike is considered a third party. The actual beneficiary of a third-party insurance claim is the third party in question.

Coverage of third-party bike insurance

Third-party bodily injury: If you are injured, you can seek compensation for medical expenses, or lost wages if you cannot return to work following the incident, and even physical disfigurement.

Third-party property damage: The process takes a little longer if property damage occurs. To compute the value of the loss, you must have the surveyor submit their report along with the bike inspection report.

Injury or fatality: If someone passes away due to the incident, the dependents of this person may be entitled to compensation based on the income lost. Medical expenses for treatment of the injury that caused it can also be claimed.

* Standard T&C Apply

What is the liability limit of the company?

The coverage for third-party property damage (usually the third party’s bike or car) may depend on your insurer. The policyholder or insured party must pay for any damage that exceeds this upper limit. 

Because there may be no limit on liability for personal injury or passing away, compensation is determined on a case-by-case basis. This will vary across cases, depending on what your policy has to offer.

In our experience with Bajaj Allianz two wheeler insurance, third party claims are hassle-free and customer-friendly. Keep them in mind when purchasing a new bike insurance policy. 

* Standard T&C Apply

Premium

The premium rate for third-party motorcycle insurance may be set by the insurer and could be uniform. The difference may be due to the engine capacity of your motorcycle.

Third-party insurance process for bike claims

Following are the general steps one has to follow when applying for an insurance claim:

1. Call the cops: An FIR is required to support your bike insurance claim and any third-party insurance claims.
2. Inform your insurance provider: Most insurance companies require notification within 24-48 hours of the accident. It is ideal to  notify them as soon as possible.
3. Photographic evidence collection: Remember to note down the names and phone numbers of witnesses willing to testify in support of your insurance claim and the insurance information of the other parties involved in the accident.
4. File a claim: You may also need to file a claim with the special Motor Accident Claims Tribunal court that has jurisdiction over the accident site.
5. Collect all of the documents listed below:

1. The original copy of the FIR
2. Policy documents from the third party
3. The completed and signed claim form
4. A duplicate copy of the driver’s license
5. Repair estimate from the service centre that will repair the vehicle
6. A copy of the vehicle’s registration book, as well as the tax receipt

* Standard T&C Apply

Word of advice

It should go without saying that being truthful with the insurance company may be the best policy. Failure to be honest can work against you, invalidating your bike insurance policy or even causing your claim to be rejected.

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.