Importance of taking a third party two wheeler insurancePosted by sanjay on June 27th, 2017 Considering the high incidence of motor accidents in India, IRDA has mandated the third party two-wheeler insurance cover for all two-wheeler owners. Hence, you are required by law to buy an insurance policy covering third party damages if you own a two-wheeler. However, due to lack of awareness, many either do not buy insurance, or do not renew the policy after the initial mandated purchase. But, it is important to have a third party cover, as it protects you from major financial losses in case of any accident. For an insurance policy, the first party is you (policy-holder), the second party is the insurer (insurance company), and the third party is anybody else who is affected by an accident involving your two-wheeler. The main purpose of taking this insurance cover is to protect you against all claims made by any such third party for the injury caused to them or the damages to their property. Your insurance company pays for such damages; saving you from major financial obligation. Inclusions The third party insurance normally covers the following:
Exclusions Most policies have an upper limit on the damage to property. Any amount beyond this has to be paid by the insured person. Moreover, if the person driving your two-wheeler is under the influence of alcohol, drugs or any other intoxicating substance; or is suffering from a condition that prohibits him or her to drive. Then your insurance company does not pay for those damages and you have to bear the expenses yourself. One single accident can change your life forever. With IRDA’s mandated third party insurance, you can at least be assured of minimizing your financial loss. Hence, do not forget to renew your policy every year. [Source: https://www.bigdecisions.com/article/importance-of-taking-a-third-party-two-wheeler-insurance] Like it? Share it!More by this author |