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Comparison between the third party and comprehensive bike insurance plans

23rd September 2022

Choosing which two-wheeler insurance plan to purchase can seem daunting. Should you get only the third-party coverage you legally require or pay for comprehensive bike insurance? Let’s first understand these types of policies.

What Is Third-Party Bike Insurance?

A third-party policy only covers third-party individuals and their property. The coverage does not extend to you or your two-wheeler. Say you meet with an accident while on your bike. Another vehicle also gets damaged in the collision. Your insurance policy will help pay for the other vehicle’s repairs but not for repairs to your two-wheeler.

Benefits of Third-Party Bike Insurance

Your third-party policy offers two crucial benefits:

1. It Covers Third-Party Liabilities

The policy helps with your financial obligations to third-party liabilities after an accident. It helps safeguard your finances to some extent.

2. It Meets Legal Requirements

India made third-party insurance mandatory. The policy ensures you stay on the right side of the law and avoid unnecessary fines.

What Is Comprehensive Two-Wheeler Insurance?

A comprehensive plan provides coverage for your vehicle and third-party liabilities. It will help you pay to replace or repair your bike after an accident or natural calamity. You can choose to enhance your comprehensive policy with add-ons.

Benefits of Comprehensive Bike Insurance

Your comprehensive bike policy helps:

1. Cover Damages to Your Bike

A comprehensive policy includes own damage cover, which means it helps take care of repairs to your vehicle after an incident.

2. Protect You from Third-Party Liabilities

Comprehensive plans include third-party coverage, which looks after your legal insurance requirements.

3. Protect Your Two-Wheeler After Natural Calamities

The plan will help you repair your vehicle after a calamity like flooding or a cyclone causes damage. In case your two-wheeler gets damaged beyond repair, your policy will help with the cost of replacing it.

4. Compensate You for Theft

If somebody steals or damages your bike while attempting to steal it, your comprehensive policy will help.

Comprehensive vs. Third-Party Two-Wheeler Insurance

Let’s look at the difference between comprehensive and third-party two-wheeler insurance plans:

Coverage

Third-party liability plans offer limited coverage. They cover damages caused by your vehicle to a third party and their property.
Comprehensive plans provide extensive coverage and protect your finances against damages and losses caused by accidents, natural calamities or malicious acts. The policy also takes care of your third-party liabilities.

Add-Ons

Third-party policies only offer personal accident cover as an add-on. Comprehensive bike insurance policies allow you to customise the plan with multiple add-on options, including zero-depreciation cover, return to the invoice amount, and roadside assistance.

Premiums

The IRDAI decides the cost of third-party plans based on the bike’s engine capacity. Each insurer offers a price based on a risk assessment and the add-ons you choose for comprehensive plans. You can look for competitive prices and get higher coverage at pocket-friendly prices.

As a bike owner, you can choose between two types of online bike insurance – third-party plans and comprehensive policies. When the time comes to decide, you must carefully evaluate your options and compare two-wheeler insurance online. Third-party plans might be affordable, but they offer fewer benefits than comprehensive ones. Once you purchase a policy, you must complete your  two-wheeler insurance renewal online on time. Remember, renewing your policy ensures you enjoy uninterrupted coverage.

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