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Does the Third-Party insurance claim affect my bike insurance?

According to the Motor Vehicles Act, Third-Party insurance is mandatory by law. This means that when you purchase your bike, it is obligatory to buy a Third-Party insurance policy. This insurance policy covers damage to other persons and property for which you take responsibility for.

What does this policy cover?

The policy does not offer coverage for you or your bike but provides compensation for your legal liabilities. When you take the insurance policy, you become the first person, the insurance provider is the second person, and the party to whom you are liable is the third party. The third-party claim only covers your liability to a third party in the event of damage to their life or property.

Say you got into an accident on the road where you collided with another rider, and the rider sustained injuries because of it. You become liable to the other person as you are responsible for the injuries they sustained. Third-Party insurance takes care of this liability by covering their medical expenses. So this insurance policy doesn’t extend to you, but only covers the damages that the third party sustained.

What the third-party liability insurance covers

  1. It covers the medical cost if any injuries are sustained by the other person
  2. It offers coverage for any permanent disabilities or death of the third party.
  3. It covers the loss of income due to disability
  4. It covers any damage to the property of the third party.

How is the third-party compensated?

When you get third-party insurance, you will have to pay a particular price as premium. The rate of the premium depends on the engine capacity of your bike, and these rates are fixed by the IRDAI and revised accordingly.

When the third party sustains any injuries or damage to property for which you are responsible, they are compensated by either a part or full amount of sum assured depending on the extent of the damage.

  • The damage to property will be covered up to the extent of Rs.1 lakh, as stated by the IRDAI.
  • Medical bills for injuries sustained by the third party will be covered.
  • In case of sudden and accidental death of the third party, 100% of the sum assured will be given.
  • In case the third party sustains a permanent disability, they will receive 100% of the sum assured.
  • If the injuries extend to the loss of both limbs, or sight in both eyes, or the loss of one limb and sight in one eye, the third party will receive 100% of the sum assured.
  • In the case of loss of one limb, or of sight in one eye, they will receive 50% of the sum assured.

So when this insurance is claimed, how will it affect your bike insurance?

Since the Third-Party insurance policy is separate from the Own Damage policy, it will not affect the sum your bike is insured for. Under this policy, there is no limit to the liability coverage for injuries and death, but there is a limit to the coverage for damage to property, which can extend to Rs.7.5 lakhs.

At Chola MS, we make the claiming process quick and hassle-free to ensure that our customers are given the best service possible. Also you can contact us for best two-wheeler insurance policy.

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