If you own a two-wheeler vehicle, it is mandatory to have bike insurance as per the Motor Vehicles Act. There are mainly two types of bike insurance policies – third-party bike insurance and comprehensive bike insurance. Out of the two, third-party bike insurance is the most basic one that covers damages or losses caused to a third party due to your bike. While it may seem like an unnecessary expenditure to some, there are many benefits of third-party bike insurance that you need to know. Here are the top five benefits of third-party bike insurance.
1. Legal Compliance
The first and foremost benefit of having third party bike insurance is that it makes you legally compliant. The Motor Vehicles Act, of 1988 mandates all two-wheeler owners to have at least third-party bike insurance. If the authorities catch you riding without insurance, you can get a penalty and the official can seize your bike. Having third-party bike insurance ensures that you can avoid the legal troubles that come with not having insurance and ride your bike worry-free.
2. Financial Protection
The financial protection that is provided by third-party bike insurance is yet another big advantage of having such coverage. You will be responsible for making restitution to the third party. But only in the event that you are also responsible for an accident that results in the third party suffering damage or injury. In addition to having the potential to have a substantial influence on your finances, the compensation sum may be extravagant. The compensation amount, on the other hand, will be handled by your insurance provider if you have third-party bike insurance. This means that you will not be responsible for bearing the financial burden.
3. Peace of Mind
The piece of mind that comes with having third-party bike insurance allows you to ride your bike without any worries. You are safeguarded against any monetary loss that may be incurred as a result of the injury or damage to property that may be sustained by a third party. Therefore, you are free to ride your bicycle without being concerned about the financial repercussions that may result from an accident. There are also certain third-party bike insurance policies that offer add-ons that provide additional coverage, such as personal accident cover and bike accessory cover. These add-ons give you even more peace of mind than you already had.
4. Covers Legal Liabilities
Third-party bike insurance covers all your legal liabilities if you are at fault in an accident that involves a third party. The insurance policy will cover all expenses resulting from injury or the death of a third party. Additionally, in case of any damage to third-party property, the policy covers the cost for repair or replacement of the same. This means that third-party bike insurance not only provides financial security to you but also takes care of any third-party financial liabilities that you may incur.
5. Cost-Effective
The cost of third-party bike insurance is significantly lower when compared to the cost of comprehensive bike insurance. On the other hand, the fact that it is more reasonably priced does not mean that it provides less coverage. As a result of offering full coverage for the most important feature of bike insurance. Third-party insurance policies cover any damages or losses to a third party as a result of an accident. If you are searching for a method of insuring your bicycle that is both affordable and comprehensive. Then you should consider purchasing third-party bike insurance.
Conclusion
Third-party bike insurance, mandated by Parivahan law, is a crucial requirement for all bike owners, offering a range of benefits. These advantages encompass financial security, adherence to legal regulations, peace of mind, coverage of legal responsibilities, and economical solutions. Familiarizing yourself with the perks of third-party bike insurance is vital. Because it ensures you invest in a policy tailored to your requirements. Always bear in mind that unforeseen accidents can lead to substantial financial burdens, making proactive preparation essential.
