Will a Third Party Claim Affect My Bike Insurance?

Posted on: Oct 10, 2022 | | Written by:

Will a Third Party Claim Affect My Bike Insurance?

Published on October 03, 2022. EST READ TIME: 3 minutes

The moment you ride your bike out of the showroom, it is mandatory to buy third party bike insurance. It not only gives you the legal clearance to ride your bike but also protects it from any unforeseen events. However, a third-party claim can be a bit time-consuming and needs some additional effort. Here is everything that you need to know about it.

Key Aspect of Third Party Insurance Claim

When you consider a third party liability only insurance, the policyholder is classified as the first party. The insurance company involved is the second party. The third party usually refers to any other individual or property, or vehicle that can claim compensation due to any injury or damages caused by your bike.

Simply put, when there is a claim under a third party liability insurance, it is primarily against the first party or the policyholder and the second party or the insurance provider. In the event of an accident that involves the vehicle of the policyholder, and causes injury/demise or damage to the property or vehicle of the third party, then the policyholder is legally liable for the damages.

As a policyholder, you must carry all the essential documents related to your third party bike insurance during your commute.

Third Party Bike Insurance Coverage

The following are the different coverages that you get access to when you purchase third party two-wheeler insurance.

1. Death Of a Bike Owner or Driver:

In the unfortunate event of an accident that results in the death of a third party bike owner or driver, their dependents can file a claim for compensation on the grounds of loss of income for the family. Expenses related to medical treatment of the injured third party, even if it leads to demise, can be claimed as a part of the policy.

2. Injuries Incurred During the Accident:

If the accident results in the bodily injury of the third party individual, they can claim compensation for medical treatment. Should the injury be grave enough to prevent the third party from working, they can claim the same under loss of income. The policy also offers coverage for any sort of physical disfigurement.

3. Property Damage of a Third Party:

Should there be any damages to a property due to an accident, the same can be claimed as a part of third party liability policy? In such events, the insurance provider will send a surveyor to access the damages to the property along with the damages that your bike incurred during the accident.

It is essential that you provide all the necessary bills that are original, and the repairs must be carried out at an authorized service centre only. If there is any deviation from the process, there is a possibility of the claim being rejected.

4. Permanent or Total Disability of Rider or Bike Owner:

During an accident, if the third party is at the receiving end of permanent or total disability, the policy provides compensation for the same.

Issues With Third Party Insurance Claim:

There are lots of instances where people do not opt to claim third party bike insurance, even if their vehicle is damaged due to another bike. Quite a number of people who do opt for a third-party claim drop the claim midway, as the process can become a bit complicated and time-consuming.

The first and foremost thing that you need to keep in mind during third party liability insurance is that you need a lot of patience. And there are a lot of possibilities of errors during the process, which can make the already complicated process, furthermore difficult.

Here are a few things that you can keep in your mind to ensure that your third-party bike insurance claim goes rather smoothly.

1. If there is an accident or mishap, the first thing that you need to do is inform the police about the incident. This step is essential, even from a legal perspective. Make it a point to file an FIR and to do it at the earliest, without any sort of delays. When you approach your insurance provider for a claim during an accident, this is one of the first documents that they will look for.

2. The next and even more important step is to inform your insurance provider about the incident at the earliest. If you have purchased your policy with the help of an insurance agent, you can inform them as well, as they can help you out with the process. Insurance providers usually have a window of 48 hours, within which you must inform them about an accident or mishap.

o Failing to do so in that window, might result in a lot of unwanted complications or even in claim rejection. You can check your policy documents or reach out to your insurance provider to know the window within which you must inform them about the incident.

3. It is pertinent that you always provide accurate information about the incident to your insurance provider. The inaccurate information can lead to claim rejection and, even worse, even cancellation of a policy as well.

4. During a claim, you must keep track of all the bills and receipts as a part of the repair. You must keep all the receipts, till the final settlement is done. It is easy to misplace the bills during the repair. Thus, it is advisable to create a folder and keep all the receipts together.

5. In the event of an accident, make sure that you capture pictures and videos of damages or injuries to your bike or yourself as well as to the third party due to the accident. Taking photographic evidence will help you in the long run. Also, you must note down the contact details of anyone willing to be a witness to the incident. Though it is not mandatory, it can help you in the claim process.

Precautions For Third Party Bike Insurance

The following are some precautions that you must take while filing for third party two-wheeler insurance.

● If there is an accident, do not use either your bike or the bike of the third party. Also, do not run away from the accident scene.

● Do not ever ride your bike under the influence of alcohol or any other intoxicating substances.

● Do not ever ride your bike without a valid driving license.

● You must not use your private bike for any commercial purposes.

Conclusion

Claiming third party bike insurance can be a lengthy and complicated process. Keeping the above points in mind will help you avoid some of the most common mistakes, which usually lead to claim rejections or complications. Following the above steps and keeping all documents intact will help you get through third party two-wheeler insurance claims without too many issues.

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

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