The Motor Vehicles Act of 1988 makes it compulsory for all motorists to have at least third-party insurance for their vehicles in order to legally operate them on Indian roads. This mandate extends to bike owners as well. Having third-party bike insurance is the most basic form of coverage that keeps you financially and legally secure in case of a mishap while riding.
Now, since third-party bike insurance is the most basic form of coverage, it does have a lot of limitations. It is important to be aware of these limitations while purchasing coverage so that you can make a proper decision as to whether you want third-party insurance only or would rather go for the comprehensive alternative. To help you, this article lists out the main exclusions of third-party bike insurance that you should be aware of.
- Own damages in a mishap
The coverage of third-party bike insurance is evident from the policy name – it covers only third-party liabilities. If your own two-wheeler has sustained any damages, you would need to pay for these on your own.
- Coverage for natural disasters
If your bike sustained any damages due to natural disasters, your third-party insurance policy will not offer you any kind of coverage for these. Natural disasters include but are not limited to flooding, cyclones, earthquakes, tsunamis, hurricanes, and typhoons.
- Coverage for man-made calamities
Man-made calamities like riots and theft do not get covered in a basic third-party bike insurance plan. If you feel you might ever need to make a claim for man-made calamities, you would be better off with a comprehensive bike insurance policy.
- Claims for damages due to war
Any claims for damages sustained by your vehicle due to war, nuclear incidents, and radioactive contamination too are not covered under a third-party insurance policy.
- Damages outside the geographical limits
If any damage happens to your bike outside the geographical limits of your policy coverage, you cannot raise a claim.
- Coverage mount limits
There is also a limit to the coverage that you get for third-party liability. For any damages sustained by the third-party to their property, you receive liability coverage up to Rs 7.5 lakhs. However, there is no such limit placed on the loss of life caused to a third party. The compensation to be paid by the insurer for third-party loss of life is decided by the Motor Accident Claims Tribunal.
- Driving while intoxicated
No claims will be paid out if the insured policyholder was found to be driving under the influence of any intoxicating substances like drugs or alcohol.
Also do bear in mind that no claims will be paid out on a policy that has expired. So, always keep your third-party bike insurance policy active. This way, you will be legally compliant and financially protected while out on the roads.
We hope that this article has helped improve your understanding of the limitations of third-party bike insurance.
Always wear a helmet and ride safely.
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