Importance of taking a third party two wheeler insurance Considering the high incidence of motor accidents in India, IRDA has mandated the third party two-wheeler insurance cover for all two-wheeler owners. Hence, you are required by law to buy an insurance policy covering third party damages if you own a two-wheeler. However, due to lack of awareness, many either do not buy insurance, or do not renew the policy after the initial mandated purchase. But, it is important to have a third party cover, as it protects you from major financial losses in case of any accident. For an insurance policy, the first party is you (policy-holder), the second party is the insurer (insurance company), and the third party is anybody else who is affected by an accident involving your two-wheeler. The main purpose of taking this insurance cover is to protect you against all claims made by any such third party for the injury caused to them or the damages to their property. Your insurance company pays for such damages; saving you from major financial obligation.
Inclusions The third party insurance normally covers the following: •
Death or permanent disability of the owner or driver of the insured two-wheeler. This includes you or anyone with a valid driving license driving your bike with your consent. It also covers hospitalization expenses prior to death.
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In case of an accident with your two-wheeler, where another person’s property is damaged, your insurer pays for such damages after necessary inspection.
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If the third party is injured and needs treatment, or unfortunately dies, due to the accident caused by your two-wheeler; your insurance company takes care of all these expenses.
Exclusions •
Most policies have an upper limit on the damage to property. Any amount beyond this has to be paid by the insured person. Moreover, if the person driving your two-wheeler is under the influence of alcohol, drugs or any other intoxicating substance; or is suffering from a condition that prohibits him or her to drive. Then your insurance company does not pay for those damages and you have to bear the expenses yourself.
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One single accident can change your life forever. With IRDA’s mandated third party
insurance, you can at least be assured of minimizing your financial loss. Hence, do not forget to renew your policy every year. •
[Source: https://www.bigdecisions.com/article/importance-of-taking-a-third-party-two-
wheeler-insurance]