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Best third party insurance for your two-wheeler

Did you know that a third party policy is mandatory by law for your two-wheeler? Rahul didn’t, and he ended up paying a hefty fine when a traffic policeman caught him without a valid insurance cover. That was when he asked his best friend, who informed him about a third party liability only policy. Let’s see what Rahul found out –


Third party insurance cover is mandatory

As per the Motor Vehicles Act, 1988, every vehicle which is registered in India must have a valid third party liability insurance cover.

What does the policy cover?

A third party policy covers your financial liabilities against third parties. Third party represents any individual or property apart from you and your two-wheeler. The plan covers your financial liabilities and compensations incurred due to the following contingencies –

·         Bodily injury caused to a third party because of your two-wheeler
·         Death of the third party due to your two-wheeler
·         Damage caused to a third party property due to your two-wheeler
·         A personal accident cover is also available in some plans which pays a benefit in case of accidental death or disability

What about the premiums?

Surprisingly, third party policies have very low premiums. The premiums are fixed by the Insurance Regulatory and Development Authority of India (IRDAI) and depends on the engine capacity of your bike. The premium rate is updated by IRDAI at regular intervals. Effective from 1st April, 2017, here are the premium rates for your two-wheeler –

Engine capacity of your bike
Applicable rate of premium
Up to 75 cc
Rs.569
More than 75 cc but below 150 cc
Rs.720
More than 150cc but below 350 cc
Rs.887
350 cc and above
Rs.1019

How long does the policy run?

Earlier, two-wheeler insurance plans came with one year policy tenure. However, with recent IRDAI changes, third party two-wheeler insurance plans can now be taken for 1, 2 or 3 years. This long-term tenure is beneficial as you don’t have to renew your policy every year and you can cut down on the hassles of online renewals.

Benefits of third party insurance plans

Third party policies provide you many benefits which include the following –
·         They are easy to buy and require minimal paperwork
·         They give you financial security in case you hurt anyone or damage any third party property
·         It saves you from legal complications which arise when you violate the requirement of an insurance policy
·         It is very affordable as the premiums are very low
·         You can buy the policy for up to 3 years thereby reducing the burden of annual renewals.

Third party plans available in the market

Almost every insurance company which sells a two-wheeler insurance plan offers a third party liability insurance policy too. Thus, you can buy a plan from the various choices available in the market.

Which is the best third party insurance plan?

 Since the coverage is similar across all plans, it is difficult to point out the best third party policy in the market. Here are, instead, five popular insurance companies with their third party policies. You can choose a plan from any of these companies –

Name of the company
Name of the policy
Advantages
Bajaj Allianz
Liability Only – Motor Insurance Policy
You also get a personal accident cover against accidental deaths and disablements
New India
Liability Only Policy
Policy term of up to 3 years is available under the plan
HDFC Ergo
Multiyear Two wheeler insurance third party liability policy
Also includes a personal accident cover for up to Rs.1 lakh and can be taken for a longer tenure
Bharti AXA
Third Party Liability Coverage
24*7 claim assistance and easy purchasing process
United India
Liability Only Policy
You get an additional personal accident cover under the plan


Rahul understood everything about a third party liability policy and got one immediately to avoid future penalties and legal complications. He was also happy with the coverage against his financial liabilities to third parties. So, if you are also looking for a two wheeler insurance plan for covering your financial liabilities towards third party, buy a third party liability policy today. 
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