Riding a two-wheeler is popular in the country and preferred by many for its economical nature and ease of commute to zip past through traffic. However, riding a two-wheeler has some risks. For such reason, wearing appropriate protective gear is mandatory. 

A bike insurance policy is compulsory for all two-wheeler riders. When buying one, there are two alternatives, a third-party policy or a comprehensive one. A third-party policy is one that offers coverage for injuries to third persons or property damage. While a third-party cover has limited scope, a comprehensive policy is one that includes coverage for its own damage. 

Insurance companies traditionally took the third party to mean a person who is not the rider or the pillion. Any liabilities due to either of these persons were excluded under a third-party cover. For third-party and comprehensive policies, an optional add-on cover was offered to include such pillion riders in its coverage thereby increasing the bike insurance price. It meant if no coverage was obtained, then pillion riders remained uninsured. 

Third-party cover for pillion riders

When it comes to pillion riders, they are at a higher risk since there is lack of awareness to wear protective gear. Moreover, these pillion riders were earlier not covered under third-party policies but now things have changed. If a pillion rider faces any injury in the event the two-wheeler meets with an accident, a claim can be made under third-party policy too. 

The Insurance Board (IB) has of late made it imperative that pillion riders should be covered under the third-party insurance cover. A third-party policy is one where coverage is offered by the insurance company to a person outside the contract of insurance. As per this new rule, any injured pillion rider is also covered by a third-party insurance policy wherein financial assistance can be sought for up to ₹5 lakhs in the event of death of the pillion. For any injuries sustained, this amount is limited up to ₹3 lakhs. An amount of ₹10,000 shall be covered for carrying such injured persons to the hospital and includes ambulances too. The details may differ as per selected coverage and Insurance board norms. 

Situations when no coverage for pillion riders is available

If a person other than the rider and pillion suffers injuries during a collision or an accident, then no benefits can be availed by the rider as well as the pillion under third-party coverage. Also, no damage to the insured vehicle is covered under a third-party policy. Further, theft is another event where no coverage is offered under third-party insurance. 

This is how pillion riders are now covered by third-party insurance plans too. While you may consider riding with a pillion as risky, but once you know the available compensation for pillion riders, you are well equipped to handle these unfortunate accidents. Remember to check for such terms at the time of your two wheeler insurance renewal and purchase. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.