Two Wheeler Insurance: Third Party vs Comprehensive Plans

Most people in India prefer purchasing a bike because it gets easy to ride it through the narrow lanes, and is better in handling the heavy traffic in our country. With the many benefits that a bike has, it’s also more prone to road accidents. Due to these mishaps, vehicles get damaged and so many lives fall into danger.

However, getting a bike insurance policy can solve your problem. Now, the major concern is the type of insurance policy one must choose- third-party or comprehensive. Keep reading, to end your confusion and make an informed decision.

  • Third-party Insurance Policy

Third-party insurance for bike is mandatory as per the Motor Vehicles Act, 1988. The policy provides coverage against damages caused to third-party property or injuries to a person from the third party. Legal liabilities that arise in case of death or injuries caused to the other party, is also taken care of by the insurance provider. This is a basic form of two-wheeler insurance and is customized to ensure the safety of the third-parties as well as their property. However, third party insurance for bike will not provide coverage for your personal expenses, in case your vehicle gets damaged or you get injured.

  • Comprehensive Insurance

A comprehensive two-wheeler insurance policy is more extensive and covers own damage as well as third-party risks. If you get injured while using your insured bike, or damage is caused to your bike, comprehensive bike insurance cover will take care of it and reduce your financial burden.

Under this policy, losses occurring as a result of natural calamities as well as man-made calamities such as floods, earthquakes, vandalism, riots, etc. are also covered. If you opt for a comprehensive plan, you have an added benefit of personal loss during road mishaps.

Considering the Cost Factor

In comparison to a comprehensive insurance policy, third-party cover costs less. The reason being, this cover is compulsory and only covers third-party liability. On the other hand, a comprehensive cover costs more, but it is wider and saves you from spending from your pocket in case an accident damages your bike.

Additional Covers

If you’ve opted for comprehensive coverage, you can choose from the various add-ons available such as Zero Depreciation Cover, Lock & Key Replacement Cover, 24×7 Roadside Assistance, Engine Protector, Consumables Expenses, Accident Shield, etc. These covers help enhance your existing plan and make sure you’re not left underinsured. However, if you purchase these add-ons, your premium amount will increase slightly. To make sure you’re not purchasing unnecessary add-ons, and to keep a track on your premium payable, you can use the two wheeler insurance premium calculator to check the quote online before purchasing.

Lastly, which policy is the best for you?

Now, because it is compulsory by law for one to have a third-party policy, and not having one will lead to penalties, etc. therefore many people end up buying it without looking at the coverage it has to offer. Whereas, to have a comprehensive two-wheeler insurance policy is not a statutory requirement, but offers you with vast coverage and can be modified as per your needs. To know what type of motor insurance policy is best suited for you, analyze and note down your requirements and usage of your bike.

For example, if you’re someone who often hit the roads for long bike rides, you must consider opting for a 24×7 roadside assistance add-on, as it will be helpful in case you get stranded somewhere. However, if you don’t use your bike much and it is always parked in your garage, third-party coverage should be enough for you.