We all know that India’s roads are not safe. The bad condition of roads is a big problem. You must be aware of the facts that the situation becoming horrifying and scary day by day. Every year there are more than 4 lakh accidents on Indian roads. Despite all motor vehicles running on the road, almost 35 percent of cars and 70 percent of two-wheelers do not have any motor insurance. That’s why the Indian Government made it mandatory to purchase at least the third party insurance for bike and car.
Source :- bajajallianz . com
What Does Third Party Insurance Mean?
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A standard motor insurance policy mainly provides two types of protection: the first, the loss of itself is on the cover and the other; the third party (TP) i.e. the other side is covered. In the road accident, your vehicle gives an on-the-air cover for breakage.
On the other hand, Third Party Insurance covers you against legal liabilities against another person, including losses to death, injury, vehicle or any other property.
The third party is the only insurance, which is mandatory under the Motor Vehicles Act. This is the reason why insurance companies sell a third party insurance policy apart from being part of a comprehensive policy.
The role of three parties in respect of insurance is:
- First Party: The party (person or institution) that buys insurance (taxpayer)
- Second Party: The party (insurance company) that sells the insurance policy.
- Third Party: Any person or goods other than the above-mentioned two sides will get the benefit of the third party insurance (such as goods or machine gets damaged due to an accident with the vehicle.
What Is New Premium Of Third Party Insurance For Bike?
In the case of the 5 year Third Party insurance for bike, the cost will be less than:
- INR 427/- for 75 cc engine power
- INR 720/- for 75-150 cc engine power
- INR 985/- for 150-350 cc engine power and
- INR 2323/- for more than 350 cc engine power
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Source :- gethow . org
What Are The Benefits Of Third Insurance For Bike?
Third Party Insurance does not get the money from the insurer, but it protects the insured from the liabilities that he has to pay for the damaged person or property in the event of an accident. These expenses also include legal and hospital expenses.
In case of an accident with the third person or any vehicle, the third party insurance for bike works as a shield for you. The responsibility of paying such damages is on the insurance company of the third party insurance for bike.
In this way, you can suddenly escape from the losses and damages as well as of a huge debt.
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What Are The Liability Of The Third Party Insurance For Bike?
According to the law, it is mandatory for the driver to pay a minimal amount for the loss to someone’s physical or property in an accident. These minimum liabilities can vary according to the severity of the case. Its rules are made by the government.
Vehicle third-party liability coverage involves two things-
- Liability for physical damage (bodily injury liability)
- Liability for property damage (property damage liability)
Liability For Physical Damage (Bodily Injury Liability)
In this case, the damage done to the physically damaged person from the vehicle is compensated by the insurance company. It includes hospital expenses, loss of income earned, and other expenses.
The compensation given to the victim depends on the policyholder’s ability to earn or economic status.
This is the reason why those people are also advised to file income tax returns, who do not have to pay tax.
Liability For Property Damage (Property Damage Liability)
In this case, damages to the property of someone else from the vehicle are compensated by the insurance company. Third party insurance helps you in financial loss suffered from the accident.
The third party insurance for bike does not defend against your crime on legal grounds.
Third Party Insurance for bike is mandatory under the Motor Vehicles Act. Under the third party insurance for bike, including vehicle theft, loss, and the option of buying the insurance for the buyer for 3 years or for 5 years is mandatory.
IRDA has said that due to this policy, now the policyholder does not have to renew the policy every year. Apart from this, the premium rates will also be stabilized, which will also reduce the frequent increase in vehicle policy premiums.
Since third party insurance is mandatory for vehicle owners, all non-life insurance companies (such as General Insurance Companies) provide such insurance protection.