Want To Claim Third-Party Insurance For Your Bike? Read This!
Updated On May 24, 2021
This article will guide you through the pros and cons of purchasing third-party insurance for your bike. Read the article to get detailed information on third-party insurance.
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Third-party insurance or the ‘act only insurance’ is the basic and obligatory insurance cover that every bike owner must have to legally ride on the road as per the motor act. The bike insurance protects the third-party vehicles and their owners in case of an accident. The policy does not insure the policyholder.
Features Of Third-Party Bike Insurance
The following are few basic features of third-party bike insurance-
There are three subjects when it comes to third-party bike insurance. Namely-first party, second party, and third party. First-party refers to the policyholder while the second party refers to the insurer or the insurance company. Third-party refers to the owner of the vehicle who is involved in an accident with the first party. A third party bike insurance plan provides coverage for all third party liabilities such as death, bodily injury, permanent or temporary disability as well as property damage of up to Rs. 7.5 Lakh incurred by a third party.
As per the Indian Motor Tariff, every bike owner in India is mandatorily required to have at least a third party bike insurance. Moreover, all new bike owners are compulsorily required to have a long-term third party bike insurance which is valid for 5 years. The absence of a third party bike insurance is punishable under law and can attract a fine of up to Rs. 2,000 and/or imprisonment of up to 3 months.
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How To Claim Third Party Bike Insurance?
Claiming bike insurance may seem like a complicated process, but is simple if the policyholder adheres to the terms and conditions of the policy. There are the steps that you must follow to claim your bike insurance-
- When an accident takes place, the policyholder must inform the bike insurance company at the earliest.
- The policyholder must file an FIR at the nearest police station and get a copy of it.
- File for a claim with the lender and compile the necessary documents.
- The insurance company will send a survey team to verify the situation and calculate the estimated cost post which the survey team files a report.
- The claim is settled based on the report.
Common Rejection Reasons For Third Party Bike Insurance Claim
Your bike insurance claim is likely to get rejected if the insurance company finds that the policyholder was involved in any unlawful activity during the accident. Driving while under the influence of any intoxicant or without a valid license.
Another very common reason for the rejection of a third-party bike insurance claim is if the claim is made post the deadline mentioned in the policy. Ensure that you claim your third-party bike insurance within the stipulated duration to avoid rejection of the claim.
Third-party insurance is not just an obligatory document, but also a necessity. Make sure to claim your third-party bike insurance on time and be honest with your insurance providers. Having third-party insurance doesn’t prevent accidents, but offers you financial cover to compensate for the loss of the third party. Ensure that you know your premises before claiming your bike insurance and drive safe!