Thursday 30 May 2024

Exclusions Under Third Party Bike Insurance Policy You Must Be Aware Of

The Motor Vehicles Act of 1988 has made it compulsory for all bike owners to have either a general two-wheeler insurance policy or a third-party two-wheeler insurance policy. The objective behind such directive measures of the Government of India is to ensure safety of the bike-rider, pedestrians, and other individuals availing road transports. Insurance Regulatory and Development Authority of India (IRDAI) is the nodal agency which regulates and watches over the insurance sector.

Two-wheeler insurance schemes provide the owners with a cover against any legal complications arising out of any unforeseen, unpleasant incident. Third party bike insurance policies, also known as two-wheeler insurance plan or motorcycle insurance plan, are generally of 2 types-

  • Liability-only insurance policy- This plan provides insurance cover for financial liabilities arising out of accidental damage caused by the bike-owner to a third-party. The damage can be of a vehicle or person (injury or even death). However, it does not extend financial cover for the losses incurred due to damage or injury of the insured vehicle or its rider.
  • Comprehensive policy for bike insurance – Unlike a liability-only insurance scheme, comprehensive vehicle insurance policies provide coverage against the damage caused to the rider as well as the third party. Also, in case of any harm caused to the insured vehicle due to an accident, fire, theft, explosion, terrorist attack or any other natural disaster, the company would provide compensation.

However, before availing the third-party two-wheeler insurance, it is important to know thoroughly about the policies, terms and conditions of the insurance scheme.

Exclusions under a third-party two-wheeler insurance policy:

A third party bike insurance covers all damages caused at any circumstances, except for a few instances. A brief list of exclusions to these plans is listed here-

  • Any minor/major injury or damage caused due to over-speeding.
  • Any loss or damage arising from drunk-driving or reckless driving.
  • Damage occurring to the vehicle out of the specified geographical area.
  • Loss or damage of any kind caused to the bike by an under-age or unauthorised rider.

Other than the handful of exceptions, a bike insurance policy covers almost all damages possible.

Covers provided under a third-party insurance policy for a bike –

While availing an insurance scheme for your two-wheeler, you must look for the best bike insurance policy that would cover maximum damages of your vehicle. The covers included in a comprehensive third-party two-wheeler insurance plan are-

  1. Injury or death of third-party individual

If an individual is harmed or injured by your two-wheeler, the insurance-providing company will provide medical expenses for his/her recovery. In case of the third-party’s death, compensation would be provided to his/her family for the unprecedented loss of income.

  1. Property damage caused to the third party

As directed by IRDA, a cover amount of up to Rs. 1 Lakh is to be provided by the insurance company if the insurance-holder accidentally causes damage to the property of a third party.

  1. Death of the insurance-holder

If the owner or the rider of the insured bike ends up losing his/her life due to a road accident, the two wheeler insurance policy provider will extend a compensation amount to his/her family.

  1. Permanent disability of the rider

Any permanent disability caused to the insurance-holder due to an accident would also mean a loss of income for his/her family. A third-party two-wheeler insurance scheme compensates for such instances as well.

According to a report, the total count of fatal road accidents in India increased to nearly 1.4 lakh in 2018. Considering the rampant rise in road accidents in India, it is a wise option to avail an insurance policy for your two-wheeler vehicle. Reliable insurance policies from likes of Bajaj FinServ can be a great option.