Third-Party Bike Insurance Starter Guide

Posted on: Aug 11, 2023 | | Written by:

Third-Party Bike Insurance Starter Guide

Published on August 08, 2023. EST READ TIME: 3 minutes

Third-party bike insurance, a legal obligation for riders, provides vital coverage against liabilities from accidents. From safeguarding you against financial burdens to compensating affected third parties, this insurance is the safety net that ensures peace of mind on every ride.

Explore the essential coverage that keeps you and others protected on the road.

What is Third Party Bike Insurance?

Third party bike insurance is a type of insurance coverage that provides financial protection to the policyholder against liabilities arising from accidents involving their two-wheeler. It is often a legal requirement in many countries, including India.

The primary purpose of third-party bike insurance is to cover the policyholder's legal liabilities for causing injury, death, or property damage to a third party. In the event of an accident, this insurance policy offers coverage for damages caused to the third party's vehicle or property, medical expenses for injuries sustained, and compensation for disability or death resulting from the accident.

Features and Benefits of Third-Party Bike Insurance

Here are the key features and benefits of third-party bike insurance:

• Legal Compliance

Third-party bike insurance ensures compliance with legal requirements in many countries, allowing you to ride your bike on public roads legally.

• Liability Coverage

It covers the policyholder's legal liabilities towards third parties for injuries, death, or property damage caused by the insured bike.

• Compensation for Third Parties

In the event of an accident, third-party insurance covers the expenses and compensation claims filed by affected third parties, protecting you from potential financial burdens.

• Legal Defence

The policy often includes coverage for legal expenses incurred in defending against claims filed by third parties.

• Affordability

Third-party bike insurance is usually more affordable than comprehensive insurance, making it a cost-effective option for riders seeking basic coverage. HDFC ERGO's third-party two-wheeler insurance premium policy, for instance, starts at Rs. 538 only.

• Peace of Mind

By having third-party insurance, you can ride with peace of mind, knowing that you are financially protected in case of accidents and fulfilling your legal obligations.

• Easy to Buy

Purchasing third-party bike insurance online is a simple and convenient process that can be completed with just a few clicks.

How Does the Third-Party Cover Work?

Third-party bike insurance involves three parties:

1. The two-wheeler owner (first party),

2. The insurer (second party), and

3. The individual who suffers damages from the insured person's vehicle (third party).

Here's how it typically works:

If the insured person accidentally causes injuries or death to a third party while riding their bike, the insurance company will provide coverage for medical expenses, rehabilitation costs, or compensation to the affected party. Similarly, if the insured person's bike damages a third party's property, such as their car, the insurer will pay for the repair costs or provide compensation for the property damage.

Inclusions and Exclusions of Third-Party Cover

Here’s what is covered (inclusions) and not-covered (exclusions) in HDFC ERGO third-party two-wheeler insurance.

Inclusions of Third-Party Cover

• Personal Accident Coverage

HDFC ERGO's third-party bike insurance policy includes a Compulsory Personal Accident (CPA) policy worth INR 15 lakhs. This coverage provides protection against medical emergencies.

• Third-Party Property Damage

The insurer will pay for expenses related to any third-party property damage involving the insured person's vehicle.

• Injury to a Third Party

In case a third party faces injury or even death due to an insured person's vehicle, HDFC ERGO will provide coverage for medical treatment or other losses.

Exclusions of Third-Party Cover

• Depreciation

Prolonged exposure to roads results in gradual wear and tear of your two-wheeler. However, such zero depreciation bike insurance is not covered by third-party cover.

• Contractual Liabilities

HDFC ERGO's third-party bike insurance policy does not cover liabilities arising from contractual obligations.

• War and Nuclear Risk

Damages to a third-party person and property arising out of war, nuclear risks, and radioactive contaminants remain uncovered in third-party bike insurance.

• Illegal Driving

Claims arising from accidents caused while driving without a valid licence or under the influence of alcohol or drugs are not covered.

• Electrical or Mechanical Breakdown

Damages resulting from mechanical or electrical breakdown, including engine seizures due to negligence, are not covered.

• Limitations

The policy does not cover accidents that occur during dexterity trials, organised racing, or speed testing.

How to File Third-Party Online Insurance for a Two-Wheeler?

Filing a claim is a simple, hassle-free process. If you wish to opt for HDFC ERGO third-party bike insurance, follow these 4 simple steps:

• Step 1

Visit the official website of HDFC ERGO by navigating to HDFCErgo.com or calling our helpline number to get in touch with the claim team. Once connected, an agent will provide you with a link to upload the required documents online.

• Step 2

You have the option to choose either a self-inspection or an app-enabled digital inspection by a surveyor or workshop partner.

• Step 3

Keep track of your claim status through our convenient claim tracker tool to stay updated on the progress of your claim and any additional information required.

• Step 4

Once your claim is approved, you will receive a notification via message.

Upon completion of the necessary procedures, the insurer will provide compensation for the damages as approved by the judgement.

FAQs

1. Is third-party bike insurance mandatory?

Yes, as per the Motor Vehicles Act, having at least third-party insurance coverage for your two-wheeler is mandatory in most countries.

2. How long does third-party two-wheeler insurance coverage last?

As per IRDAI (Insurance Regulatory and Development Authority of India), third-party bike insurance should be offered for a period of 5 years for two-wheelers.

3. Can I enhance my coverage with add-ons?

No, third-party bike insurance provides coverage only for third-party liabilities and no add-ons can be opted for. However, if you wish to have comprehensive coverage, buy HDFC ERGO Comprehensive Bike Insurance to avail of additional benefits, such as zero depreciation bike insurance coverage and emergency assistance coverage.

Conclusion

Third-party two-wheeler insurance provides essential coverage and financial protection against liabilities arising from damages or injuries caused to third parties by your two-wheeler. It is mandatory in many countries to ensure that third parties are safeguarded in the case of accidents.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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