Everything you want to know about Third-Party Insurance

In India, insurance companies offer two types of insurance policies. Bike owners can choose whichever policy as per their suitability. One such policy is the Third-Party Bike Insurance.

Third Party Bike Insurance:

This is also called Liability insurance. The Government of India has made it mandatory to buy a third-party insurance policy after one has bought a new vehicle. This is the most basic insurance policy and it is not very costly in comparison to other policies in the market. It is referred to as Third Party cover as it provides financial aid to the third party and not the policy holder himself.

According to this policy, if you meet with an accident and another vehicle is damaged because of you, then that person can claim compensation from you for the damages caused to his vehicle or himself. You will not pay the compensation from your own pocket, but it will be paid by the insurance company from whom you would have bought the policy. Thus, it will not burn a hole in your pocket in case of any unforeseen incident.  The maximum amount covered in this policy is Rs. 7.5 lakh.

Third party insurance can be procured for both, commercial as well as private vehicles.

To sum it up, third party insurance is the insurance policy purchased by the owner of the vehicle from the insurance company to protect himself against the claims of the third party for any damages inflicted upon him or his vehicle due to accidents, whether big or small. However, under this policy, financial aid will not be provided to the policy holder (vehicle owner) himself.

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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.