Motor insurance in India is mandatory by law for all vehicles registered and plying on Indian roads. This rule also applies for two wheelers. Non compliance can lead to enforcement of legal punishments which includes hefty fines and prosecution under various road safety laws such as provisions under the Motor Vehicle Act. Having an insurance also provides a sense of security as riding two wheelers are more risky.
Cover for third party liability involving the insured two wheeler is compulsory, which simply means that damage or loss caused to a third party person/property must be covered by motor insurance. To understand this subject better, we must first uncover the two commonly terms used in the insurance parlance. Third party and Comprehensive cover. Whilst the former only insures third party liability, the latter not only covers third party, but also damage/loss caused to the insured vehicle.
Advantages of Third Party Liability Insurance
- Referred to as the “Act Only” cover, this type of insurance cover fulfills the statutory requirement of having a cover for third party person/property damages.
- Premiums are economical compared to its counterpart. Can be easily affordable.
- Third party cover can be procured in easy steps with minimal documentation and checks as it does not involve cover for the insured two wheeler.
Disadvantages of Third Party Liability Insurance
- As stated earlier in this article, the main drawback is that it does not provide monetary cover for the insured vehicle or its occupants.
- In case of a mishap that causes major damage to the insured vehicle, the owner will have to shell out the repair and replacement expenses from his own pocket.
- Unlike Comprehensive coverage, very little rider and flexible options are available, limiting the enhancements.
What Should You Choose?
A Comprehensive cover is highly recommended. However, the onus to choose the best one is on you. If you think the riding conditions in your locality is safe and not prone to accidents and mishaps, a Third Party Cover would suffice. The only major aspect that can hold you back from availing a comprehensive policy is the premium amount. Considering the steady rise in road accidents in India owing to multiple factors, a Comprehensive insurance will cover you against all possible liabilities and expenses.
How Do I Buy a Third Party Two Wheeler Insurance
The insurance cover will be provided by the dealer during the handover process if you’re buying a new two wheeler. Otherwise, just before expiration of the policy term, you can renew the Third party cover on the web portal of the insurer under the relevant section. Ensure the renewal is done before the actual expiry date to avoid inspection charges.
A highly recommended homework before renewal is to get online on a neutral policy comparison website, compare plans and avail an insurance that best suits your requirements. You not only benefit from multiple offers, but also have the advantage of receiving discounts.
Documents You Must Keep Handy During Insurance Renewal
- Existing policy for reference
- Registration Certificate of your Two Wheeler
- Debit Card/Net Banking details for payment