Does third party insurance cover rear passengers?

Does third party insurance cover rear passengers?

 The Motor Vehicles Act states that all two-wheeler owners must have a third-party liability insurance policy.  The policy covers damage caused to a third party, person or property in the event of a collision or road accident.  However, IRDAI has made it mandatory to cover pillion riders in a third-party insurance policy that will cover injury or death to the pillion rider.

 Laws related to pillion riders in India

 In India, the Motor Vehicles Act 1988 sets rules for both drivers and pillion riders, which are as follows:

• Only two people (including the driver) can ride on a two-wheeler.

 • The passenger behind the driver should take safety precautions.

 • Under Section 129 of the Motor Vehicles Act, all riders on a two-wheeler are required to wear a helmet as authorized by the Central Government standards.

 Earlier, rear seat occupants were not covered under third party liability insurance, but Section 147 now covers them for compensation in case of injury or death in a road accident.

Features of Pillion Rider Insurance

 According to IRDA, the following rules are proposed for pillion riders in case of accidents:

 • If the pillion rider dies, their immediate family member can claim up to ₹5 lakh.

 In case of injury due to a road accident, the surviving pillion can claim up to ₹3 lakh.

 • No compensation if the driver injures or kills another party;  Priority goes to the third party victim.

 Only one rear seat occupant is eligible for compensation.

• In case of accidental death or injury to a child aged 1-5 years, the occupant gets 50% of the total policy amount.  However, compensation in case of accidental death or injury will be 25% of the policy amount if the child sitting rear is less than one year of age.

 • The policy provides coverage up to ₹10,000 for vehicles carrying injured persons to the hospital in the event of an accident, including ambulances.