Third-party insurance is an insurance policy purchased for protection against the claims of another. This is the minimum and compulsory cover that you need to take as per the motor law in India. Third-party offers coverage against claims of damages and losses incurred by a driver who is not the insured, the principal, and is therefore not covered under the insurance policy. This policy covers the liability arising out of an injury, damage or death of the third party, where the insured vehicle is at fault. The Third Party insurance prices of third party Third Party insurance are quite affordable, and Under this policy, the prime beneficiary of the policy is neither the original insured nor the insurance company, but a pretentious third party.
What are the Benefits of Third-Party Insurance?
Though experts usually recommend the comprehensive insurance policy for bikes, the third party liability insurance cover has its benefits.
- This policy provides protection against death or injury to third person in case of an accident involving your bike.
- Buying a third party insurance cover is very easy because it does not require much documentation. The main reason is that this policy does not cover losses (damage or theft) to your insured vehicle.
- In comparison to the comprehensive insurance cover, the premium for an exclusive third party liability cover is very low.
- You get peace of mind when you buy a third party liability policy because the liabilities are uncertain and unlimited when it comes to injuries or death to third parties.
This policy is also known as the ‘Act only’ policy. It covers the following events.
Third-party Liability Cover
A third-party insurance plan includes the mandatory aspect associated with a insurance policy. It provides coverage to all your liabilities related to medical needs of a third party.
Third Party Property Damage
Did you accidentally collide with another person's vehicle or property? If yes, do not worry as we cover up to Rs. 7.5 lacks towards third party property damages.
Personal Accident Cover
Recently, this component of a Two-Wheeler insurance policy was revised and the cover was increased from Rs. 2 lakhs to Rs. 15 lakhs. What this means, in case you are injured due to an accident involving your insured Two-Wheeler, the insurance company will take Two-Wheeler of medical expenses up to Rs. 15 lakhs as per the terms and conditions of the policy.
What does the third party liability insurance policy not cover?
Any claim due to or arising out of pre-existing condition/ailment, whether declared or undeclared, is not covered under the policy. Your policy will also not include the following :
Drink and Drive
Damages caused to the Third Party if you or anyone else was caught driving under the influence of alcohol at the time of accident.
Deliberate accidental loss is not covered. If it is proven that the accident was entirely staged, the claim would be rejected.
Driving on the wrong side of the road or without a valid license, or if the Third Party's driven by an underage person.
An expired policy, consequential damages, electrical and mechanical failure, regular wear and tear, and driving outside geographical limits are other reasons for claim rejection.
Driving your private vehicle for commercial purpose and vice versa.
- Normal wear and tear and general ageing of the vehicle
- Depreciation or any consequential loss
- Damage to/by a person driving any vehicles or Third Party’s without a valid license
- Damage to/by a person driving the vehicle under the influence of drugs or liquor
- Mechanical/ electrical breakdown
- Loss/ damage due to war, mutiny or nuclear risk
- Vehicles including Third Party’s being used otherwise than in accordance with limitations as to use
- Wear and tear
- Damage to tyres and tubes unless the vehicle is damaged at the same time, in which case the liability of the company shall be limited to 50% of the cost of replacement
- Driving the vehicle against the limitations as to use
- It’s always a good idea to be aware of what is excluded from your policy, so that you are not disappointed by extra expenses later. So make sure you go through the Third Party Insurance Policy Wordings Third Partyefully.
It’s always a good idea to be aware of what is excluded from your policy, so that you are not disappointed by extra expenses later. So make sure you go through the Third Party Insurance Policy Wordings Third Partyefully.
How can you choose your IDV?
The vehicles are insured at a fixed value called the Insured’s Declared Value (IDV). IDV is calculated on the basis of the manufacturer’s listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the erstwhile Indian Motor Tariff. IDV i.e., Insured Declared Value is the current market value of the vehicle that starts depreciating by the time it came out of the showroom. In, case your Third Party undergoes total loss or theft, IDV is the amount offered you to compensate. You can obtain IDV by deducting depreciation from the market selling price of the vehicle.
How is IDV calculated ?
The calculation of the Insured Declared Value is based on the manufacturer’s selling price of the vehicle including the listed price of the accessories. And, the depreciation value gets deducted as per the scheduled provided by the Indian Motor Tariff.
It is: “The market value of vehicle – The depreciation value = Insured Declared Value (IDV)”
How does Premium Get calculated?
The insurance premium of your Two Wheeler is chargeable in one go. Our Premium Rating depends upon the following factors:
- Cubic capacity
- Geographical zone
- Age of the vehicle
- Add on Covers
Explore Our Simple & Hassle-Free Claim Process
1. Inform Insurer immediately and keep the following details on hand:
- Policy Details
- Contact Details
- Loss Details
2. Please refrain from dismantling or repairing the vehicle before survey is completed.
3. Survey will be arranged on receipt of claim intimation and submission of detailed estimate of repairs from the repairer.
4. Documents must be provided to the repairer/surveyor prior to survey.
5. Duly filled and signed claim form. Please note that it is mandatory to update Aadhaar and PAN details. For company owned vehicles, signature of authorized signatory along with company seal is required.
6. Registration Certificate of the vehicle along with photocopy. Original to be verified and returned.
7. Driving License of the driver at the time of accident along with photocopy. Original to be verified and returned.
8. FIR from police station if third party death/ injury or property damage.
9. If the claim amount exceeds Rs. 1,00,000, we require a copy of your PAN Third Party along with a recent passport size photo.
10. Other documents may be requested based on the requirements of the claim.
11. If all documents are found to be in order, we will arrange for cashless facility. You may collect the vehicle after completing a satisfaction voucher and paying any amount as required.
12. For Non cashless claims (reimbursement claims), original cash bill or Invoice with cash receipt is required for settlement of claim.