THIRD PARTY BIKE INSURANCE

The third party bike insurance policy refers to a plan that provides insurance coverage for any other person other than the bike owner himself. Most often, your bike gets involved in an accident injuring an innocent third party who may raise a claim against you. This can be for causing injury or damages or losses to their property or life in an accident.

In some countries such as India, all Bike Insurance Policies must cover third party covers and without Third Party Insurance, one cannot buy two- wheeler Insurance Policy in India.

This policy is very important because when we ride our bikes in Public places and by peradventure anything happens to the Public and you are not able to pay for the damages out of your pocket, the insurance company will now step in to indemnify the third parties. Thus, if you are not able to pay the compensation it will create problems.

Benefits and otherwise of Third-Party Bike Insurance

There are several benefits with third party bike insurance policy. In some jurisdictions, the policy is compulsory and having the policy will be in obedience to the law. In these countries, all bike owners must have this insurance policy to legally ride their bikes on the roads. Therefore, one might face huge penalties if caught riding bikes without appropriate third-party insurance policy. The reason behind this is owing to the increasing rate of road accidents which most often affects innocent third parties and passersby leading to heavy injuries. However, with third-party insurance in place, such occurrences will receive adequate attention. Now we shall take us through the benefits of the third party bike insurance policy.

 Compliance with the Law

In the countries where third-party bike insurance is mandatory, buying the policy will mean complying with the provision of the law. Therefore, in those localities, it is important that all bike owners have third-party insurance to ensure they comply with the law of their countries. So, if one does not have the third-party insurance, they will have to pay huge fines or will even have to face legal prosecution with possible terms of imprisonment

Legal Liability

Another benefit of third-party bike insurance coverage is that it frees the policyholder from financial liabilities for the damages to the third parties. In case of accidental damage to property or injury of the third party, this policy will cover the liabilities by the provision of monies to cater for them.

Peace of mind.

Buying a third party bike insurance policy provides the policyholder with peace of mind. This level of peace of mind comes from the certainty mind that your future is guaranteed in the circumstances where the insured perils happen to you.

Financial Stability

Third party bike insurance policies guarantee financial stability for a policyholder — monies that could have been expended by a policyholder due to loss is taken care of by the insurer

Insurance companies play significant roles in the stability of financial systems. This is as a result of their huge investments in the financial markets. Insurance companies broker links between the Policyholders and the banks. And as well ensure the financial stability of the homes through the insurance of their risks. Needless saying that the financial stability of the homes culminates to that of the larger economy.

Cheapness as a benefits of third party bike insurance

The Third-party insurance is cheaper when compared to other category f insurance policy such as the comprehensive insurance policy. It also requires less documentation and paperwork since it is for a third party.

Disadvantages of Third-Party Bike Insurance

While third-party bike insurance is beneficial in a lot of ways, it however still has some certain disadvantages. Some of these disadvantages include:

1. The policy only provides coverage for loss or damage to a third-party person or property. Thus, the policy will not cover any damages or loss affecting the policyholder and/or their bike.

1. The policy will have to pay out of his own pocket for damages to the bike and as well as the medical bills for injuries to his person. This is for the sole reason that the insurance policy is only beneficial to third parties.
2. This policy only provides a very limited insurance coverage
3. It does not also offer compensation for the loss, theft or damage of the policyholder’s bike
4. There are no provisions for additional riders or add-ons to compliment or to enhance the insurance policy’s coverage.

Conclusion

In conclusion, it is important to note that while the third-party insurance helps cover legal liabilities and complies with the law as well as other damages listed above, this policy, however, does not provide any cover for the policyholder’s personal damages when an accident occurs but to the third parties only. Consequently, it is very important to have an insurance policy that covers loss for both parties. An example of such policy that covers both third-party liabilities and as well as personal loss is comprehensive bike insurance. It is an all-inclusive policy that provides adequate cover that the prospective policyholder desires.