Having a bike comes with its own set of responsibilities, and one of the most important ones is to get your vehicle insured with third party insurance. Bike Insurance is a legal requirement in India as per the Motor Vehicle Act 1988. To ensure that all bikers are adequately covered, the Insurance Regulatory and Development Authority of India (IRDAI) has put forth certain new rules for renewing third party bike insurance policies.
This article explains these rules in detail so you can be aware of the process while renewing your bike insurance policy. So, let’s get started.
An Overview of Third Party Bike Insurance
Third party bike insurance is a type of policy that offers cover for those riding a bike in the event they cause injury or damage to another person, their vehicle, and property. It does not provide coverage for damages incurred to your own bike or any medical expenses related to an accident.
When taking out third party bike insurance, it’s important to understand that you are only covered if you are found liable for an accident or incident. If someone else is at fault, they will need to purchase their own policy to cover any damage caused.
Generali is widely recognised as one of the best two wheeler insurance providers, offering comprehensive and affordable policies to suit various needs. With Generali, you can be sure that you are getting quality coverage at an affordable rate.
What all things Does Third Party Insurance Policy Cover?
The two wheeler insurance policy covers third-party liabilities of the insured during a bike accident. It provides coverage to events such as injury, death or property damage caused by your vehicle to a third-party. Some of the key coverage features of third party insurance for bike include:
- Coverage for the legal liabilities arising from accidents caused by your bike to third parties.
- Insurance cover against any permanent disability or death of a third person due to an accident with your two wheeler.
- Compensation in case of damage caused by your vehicle to property belonging to a third party.
- Cover against legal costs and expenses that you may incur due to an accident involving your bike.
It is important to understand what all things are covered under third party bike insurance to make a wise choice while buying or renewing bike insurance online.
Advantages of Getting Third Party Bike Insurance
Mentioned below are the significant advantages of opting for third party bike insurance:
- Legally Compliant: It is mandatory by law to get your bike insured to keep it running on Indian roads. Without third party bike insurance, you can face legal consequences like hefty fines and even a jail term in some cases.
- Lower Premiums: The premium for third party bike insurance is lower than that of comprehensive bike insurance plans, making them more economical and pocket-friendly.
- Online Availability:Bike insurance online is available 24X7 and can be purchased or renewed at any time. You don’t have to worry about long queues and wait times as you can buy the insurance policy with just a few clicks.
➔ Financial Obligation: Getting third party bike insurance not only helps to protect your bike and its rider, but it also provides financial security when dealing with legal obligations. In the event of an accident, third-party bike insurance can help you pay for any damage caused to another person’s property or injury sustained by them.
IRDAI Rules For Two Wheeler Insurance
Two wheeler third party insuranceis a must for all bike owners in India as per the rules of the Insurance Regulatory and Development Authority of India (IRDAI). The main rules as per IRDAI are as follows:
1. Premium
Bike insurance premium is fixed for five years when you buy a new two-wheeler. This means that you will be immune to any annual increase in premiums during your policy period, thus saving money on overall premium payments. With bike insurance online, you can easily renew your existing policy or purchase a fresh third party bike insurance after every five years. Renewing your bike insurance is also easy and can be done online within a few minutes.
2. No Claim Bonus
No Claim Bonus (NCB) is a reward given by the insurance company to the policyholder for not making any claims during the policy period. The NCB can be availed during bike insurance renewal and helps reduce your premium amount. When you buy a two wheeler insurance online, you must mention all previous policies with their respective NCB details.
3. Refund
If you cancel your two-wheeler insurance policy before its term expires, you are entitled to refund the unutilised part of it. This applies to situations such as theft or total loss of your bike. Bike insurance online renewal and third-party bike insurance policies are both eligible for refunds on cancellation. You must check with your insurer about their refund policy before purchasing a policy for complete clarity on the applicable terms and conditions.
4. It isn’t Important to Renew Third Party Bike Insurance
It is essential to understand that third party bike insurance is mandatory in India, as per the Insurance Regulatory and Development Authority of India (IRDAI) rules. However, when it comes to renewing such a policy, riders don’t need to do so every year. Third party bike insurance provides coverage for personal injury, death or damage caused by the insured vehicle to another person/property – but it doesn’t offer protection against any personal injury/damage suffered by the owner of the vehicle.
The Bottom Line
The IRDAI’s new rules have made bike insurance renewal much easier and smoother. Third party bike insurance is now available for two years at a time, allowing riders to avoid the hassle of frequently renewing their policy. This means that bikers can enjoy a stress-free ride with the assurance that their third party bike insurance is up-to-date.
With more companies offering bike insurance online options, riders can easily find an insurer that meets all their requirements. The IRDAI’s new regulations are definitely a welcome change for bikers looking to renew third party bike insurance!