Bike insurance is a must-have for all bike owners. It not only provides financial assistance in case of accidents but also protects against theft or damage caused by natural calamities such as floods, earthquakes, and storms. In India, it is mandatory to have at least third-party (TP) insurance before you take your bike out on the road. However, many people are not aware of what exactly the TP policy entails and how it works. In this article, we will delve into the details of the TP policy in bike insurance.
What is Third-Party Insurance?
Before we dive into the specifics of the TP policy, let’s understand what third-party (TP) insurance is. In simple terms, a TP policy is basic insurance that covers damages caused by your bike to a third party’s property or person. For instance, if you accidentally hit another vehicle or hurt someone while riding, your TP insurance will cover the damages caused to the third party.
What Does the TP Policy Cover?
The TP policy covers damages caused to a third party’s life, limb, or property. In case of an accident, if you are found liable for causing harm to another person or their property, your TP policy will cover the damages up to a certain limit. The TP policy does not cover any damage caused to your own bike or injuries sustained by you.
Importance of TP Policy
As mentioned earlier, it is mandatory to have at least TP insurance before taking your bike on the road in India. The Motor Vehicles Act, 1988, makes it compulsory for all bike owners to have a valid third-party insurance policy. Failing to abide by this rule can result in hefty fines or even imprisonment. Additionally, having TP insurance protects you from legal liabilities in case of an accident.
Limitations of TP Policy
While TP insurance is mandatory, it has its limitations. The coverage provided by a TP policy is limited to damages caused to a third party’s life, limb, or property. Therefore, if you are involved in an accident and your bike sustains any damage, or if you suffer from any injuries, the TP policy will not cover it. For this reason, it is recommended that you opt for comprehensive insurance, which provides coverage for both third-party liabilities as well as own damage.
TP Policy Premium
The premium for TP insurance varies depending on several factors such as the make and model of your bike, age of the bike, engine capacity, and geographical location. Typically, TP insurance premiums are lower than those for comprehensive insurance, as they provide limited coverage. However, the premium rates for TP insurance have been increasing over the years due to rising inflation and the increasing cost of third-party claims.
Conclusion
To conclude, the TP policy in bike insurance is mandatory and provides coverage for damages caused by your bike to a third party’s life, limb, or property. It is important to note that TP insurance does not cover any damages caused to your own bike or injuries sustained by you. While TP insurance is essential, it is advisable to opt for comprehensive insurance, which provides coverage for both third-party liabilities as well as own damage. Before purchasing a bike insurance policy, it is recommended that you read the terms and conditions carefully and compare the premiums and coverage provided by different insurance providers to make an informed decision.
