Renewing Two-Wheeler Insurance Online? Why Third-Party Cover Might Still Be Enough

While renewing your two-wheeler insurance, you generally get two options: third-party and comprehensive insurance. Even though it seems that a comprehensive insurance policy is a better option to secure your bike properly, it may not always be the case.

Third-party two-wheeler insurance is a mandatory requirement under the Motor Vehicles Act 1988. However, if you’re using your two-wheeler less or in a low-risk scenario, a third-party insurance may be enough.Keep reading to understand why a third-party plan can be enough during two wheeler insurance renewal online.

Is Third-Party Insurance Enough for a Two-Wheeler?

When one renews two-wheeler insurance online, most riders are curious if third-party cover is enough. According to the Motor Vehicles Act, third-party insurance is compulsory and covers financial liability in case of injury, death, or damage to someone else’s property.

It is generally cheaper, with a premium rate starting from about ₹538. So it is ideal for those on a low budget or having old bikes of low market value. However, it does not cover damage, theft, or loss of your own vehicle in case of natural disasters. Thus, if your riding frequency is low and your bike’s repair or replacement value is low, third-party cover may still be sufficient. But make sure to evaluate your risk prior to renewal.

Why Renew Two-Wheeler Insurance Online?

Renewing insurance online for two-wheelers is simple and quick, but why is it useful? Let’s discover.

• Time Saving: The Online renewal process takes a mere 2-3 minutes, allowing you to handle the renewal anytime and anywhere without making a physical visit to the branch.
• Instant Issuance of Policy: After you make the payment, you get the policy immediately by post. This keeps you protected with no delay.
• Affordable Premiums: There are no middlemen involved in online platforms, reducing the premium amount. For instance, digital insurers offer 70% discounts on premiums.
• No Claim Bonus Discount: The No Claim Bonus is a reward for a claim-free year. So, as and when you renew the policy, you can avail the NCB discount up to 50%.
• No Inspection: If your policy lapses, you can renew online without any inspection due to the availability of a grace period of 15-30 days.
• Include Add-ons: Customising your policy is possible with add-ons such as zero depreciation and roadside assistance with a few clicks.
• No Paperwork: No further documents are needed for online renewal. Input your policy information and two-wheeler vehicle number, and renew with ease.
• Reminders: Online portals send renewal reminders promptly to prevent missing the due date.

4 Key Exclusions in Third-Party Two-Wheeler Insurance

Third-party insurance is generally affordable since it covers only third-party liabilities. Hence, if you plan to go for this scheme, it is essential that you’re aware of the exclusions. Here is the list:

1.     Own Damage

Any damage caused to your own two-wheeler due to an accident is not covered. For instance, if your bike meets with an accident, damaging the fuel tank and front wheel, your third-party insurance will not be responsible for paying the repair costs.

2.     Drinking and Driving

Third party two wheeler insurance does not include damages or losses to third parties if the insured is found drinking and driving the insured vehicle. It has been observed that, on average, in the 10 years from 2014 to 2023, nearly 11,000 individuals lost their lives annually in drunken-driving accidents.

3.    Riding With No Valid Documents

If you have no valid driving licence and drive a two-wheeler vehicle, the insurance company will then reject your claim in case of any accidents. Following Section 3 of the Motor Vehicles Act, driving a two-wheeler vehicle without a licence currently imposes a fine of ₹5,000. 

4.    Damage from Natural Disasters

Accidents resulting from events like floods, earthquakes, cyclones, or landslides that have caused loss to your two-wheeler are not covered. Natural calamity damage is covered only for third-party liability and hence requires additional own-damage cover.

Final Words

Choosing the right insurance for your two-wheeler is essential to cover your vehicle from various damages. If you have an old two-wheeler vehicle or ride occasionally, opting for a third-party cover is enough. The online renewal process is smoother and faster if followed accurately.

Moreover, you can also prevent vehicle inspection and tedious paperwork. A third-party plan might not provide damage coverage for your bike, but it is still a smart choice for riders with budget constraints.