If you own a motorcycle, you are required to carry third-party liability insurance, and a two wheeler insurance app can help. Let us define ‘third-party liability insurance’ in this article. We will also consider the benefits of having such a policy. Accidents can happen at any time and in any place. Any accident involving your bike can result in death or property damage to third parties. Such liabilities can be covered by third-party insurance.
Definition of Third-Party Insurance
This is a required policy that covers the financial losses you incur as a result of injuries to another person, vehicle, or property. The Motor Vehicles Act of 1988 requires all vehicle owners to carry third-party liability insurance. More information about this, as well as how to buy motorcycle insurance.
Third-party liability insurance’s key features
Though experts usually recommend comprehensive insurance for motorcycles, third-party liability insurance has its advantages. Third party bike insurance covers:
- This policy protects you against third-party death or injury in the event of an accident involving your motorcycle.
- Purchasing third-party insurance is simple because it does not necessitate much documentation. The main reason is that this policy does not cover losses to your insured vehicle (damage or theft).
- The premium for an exclusive third-party liability cover is very low in comparison to the premium for comprehensive insurance cover.
- When you purchase a third-party liability policy, you gain peace of mind because the liabilities are uncertain and unlimited when it comes to injuries or death to third parties.
What does third-party liability insurance cover?
This policy is also referred to as the “Act only” policy. It covers the events listed below, and more information can be sought on the bajaj allianz bike insurance app.
- Unfortunate demise or bodily harm to a third party – An accident can leave the victim paralysed. It may also lead to the death of a third party. This policy covers the victim’s medical expenses. The victim is also entitled to claim expenses for lost income because he or she will be unable to return to work. The claim is paid by the insurance company.
- Third-party property damage – This policy covers third-party vehicle damage. The amount payable as third-party property damages is limited to Rs 7.5 lakhs.
- The unfortunate demise of the owner / driver – If ‘owner-driver PA cover’ was purchased, the dependents of the insured vehicle receive compensation in the event of his / her death as a result of an accident involving a two-wheeler.
- The compensation formula for the owner-driver PA cover is as follows.
- In the event of an unfortunate demise, loss of sight in both eyes, or loss of two limbs, the compensation is 100% of the sum assured.
- The claim is limited to 50% if you lose one limb or sight in one eye.
- This is subject to the owner having a valid and current driver’s licence and being the registered owner, according to the RC.
What is excluded from the third-party liability insurance policy?
This insurance policy does not cover the following events:
- Your own vehicle has been damaged.
- Any damage or liability resulting from activities outside the policy’s geographical area.
- Any claim based on contractual liability
- Losses incurred as a result of war, a warlike situation, nuclear weapons, or radioactive contamination.
What are the advantages of having third-party liability insurance?
- Covers third-party bodily harm and property damage.
- If owner / driver PA cover is obtained, it covers the owner’s or driver’s disability or death.
- In comparison to other insurance policies, the premium is low.
- It is simple to document because it does not require the owner’s vehicle insurance. This can be done through the two wheeler insurance app.
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.