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A two-wheeler is one of the best types of vehicles one can own. It costs a few thousands, easily fits into budgets and can be purchased by taking out an instant loan. It also offers great fuel economy. Moreover, the compact size of the vehicle makes it easy for one to navigate through the traffic despite rushed traffic hours. But, whether you own a motor-cycle without gear (scooter) or a geared bike, it is essential that you purchase bike insurance. Let’s find out what is third party insurance for bike, what is covered and why it is essential.
Third party insurance, also referred to as third party liability cover is a type of vehicle insurance that is mandatory for all vehicle owners. If you own a two-wheeler, it is compulsory for you to invest in a third party bike insurance policy as per the Motor Vehicle Act of 1988.
The third party insurance policy offers you financial and legal protection in case your two-wheeler is in any sort of accident that causes injury, or death of an individual. The policy covers the medical expenses of the injured party and even offers compensation in case of death due to the accident. Moreover, it also offers protection against the damages caused to the individual’s property or vehicle. This policy can be purchased separately or as a part of a comprehensive bike insurance policy that offers all-round coverage and protection.
Now that we know third party bike insurance meaning, let’s also find out what is covered under this policy. As the name suggests, a third-party insurance policy is one in which the beneficiary is the third party individual injured or dead in the accident; not the policy holder or the insurance provider. An all-encompassing policy, it offers coverage against factors such as
Just knowing third party two-wheeler insurance meaning and the coverage offered is not enough. It is important to understand why it is essential to purchase this policy.
It offers you legal protection: As you know, a roadside accident quickly becomes a legal matter. If one is found driving without a valid insurance policy, he/she could be penalised up to ₹10,000 and could even be looking at imprisonment for a period of 3 months or more, depending upon the severity of the circumstances. The third party insurance cover offers some sort of respite during such trying circumstances.
It offers financial protection: If one is severely injured in an accident, the party causing the accident is held accountable for bearing all the medical expenses, including hospitalisation and surgery fees. However, with a valid third party two-wheeler insurance policy in hand, these expenses are borne by the insurance provider. The policy also covers the cost of damaged caused on the vehicle or the property of the injured party, if any. As such, the policy holder does not have to worry about these expenses.
It gives you a sense of security: Any road side accident can be a cause of a great deal of stress and tension. There is always a lot of paperwork to be filled out and a lot of formalities to be completed. In such a case, your insurance provider comes to your aid and offers you the necessary help required during such trying times. Irrespective of the situation, the policy holder can take respite in the fact that the legal and financial complications will be handled and both, the policy holder and the injured party can focus on coping with the accident instead of worrying about dealing with the situation at hand.
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