One Stop Guide to Liability-Only Bike Insurance Plans

If you own a bike, having insurance is a must for you. At the very least, you need to have third-party liability insurance in place. However, it is smarter to know what something is before you make the purchase. Hence, you need to know what ‘Third Party Liability Insurance’ means and then understand all the benefits that it offers you.

Accidents can happen anywhere, anytime. Any accident related to your bike may result in loss of life or damage to third-party property. Since you are liable to pay for these injuries or damages, third-party insurance may take care of such liabilities. Third-party liability insurance cover is mandatory for every vehicle owner under the Motor Vehicles Act 1988.

How is third-party insurance different from a comprehensive insurance policy?

As there is a certain level of overlap between the coverage of the two policies, many people confuse a third-party liability policy with a comprehensive insurance policy. However, apart from a few similarities, both these policies are fundamentally different. A comprehensive two wheeler insurance policy is a combination of third-party insurance and own damage cover. Therefore, it covers liability for damages to both your vehicle as well as any damages to third parties. A third-party liability insurance policy provides coverage for injuries and damages to a third party only.

Key features of third-party liability insurance

Although experts generally recommend a comprehensive insurance policy for bikes, third-party liability insurance cover has its advantages.

  • This policy provides protection against death or injury to a third party in the event of an accident with your bike.
  • Buying a third-party insurance cover is easy because it does not require much documentation. The main reason is that this policy does not cover damage, loss, or theft of your insured vehicle.
  • Compared to comprehensive insurance cover, the premium for a third-party liability cover is much lower.
  • Liabilities in the event of injury or death to a third party can be uncertain and unlimited. Hence, you will have a great deal of mental peace when you purchase a third party bike insurance policy. That way you can focus on your ride and not worry about trouble with the authorities or any liabilities with a third party.

* Standard T&C Apply

What does a third-party liability insurance policy cover?

The coverage of a third-party bike insurance policy include:

  • Injury to the third-party 

An accident that you get into may result in a grave injury to the third party. This policy covers the medical expenses of the third party. The third party is also entitled to claim compensation for the loss of income as they will most likely not be able to work. *

  • Damage to third-party property 

This policy covers damage to a third-party vehicle or property. There is a limit on the value of the third-party property the policy will cover. *

  • Owner/driver death 

If the ‘owner-driver PA cover’ is taken at the time of buying the policy, the dependents of the insured vehicle’s owner will be entitled to compensation in the event of accidental death by a two-wheeler accident. *

* Standard T&C Apply

While a third-party policy is the cheapest two-wheeler insurance option, there are many factors that go into determining the premium of the policy. To be aware of how much you should be charged for your coverage, you can use a two wheeler insurance premium calculator. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.