Is a Third-party Bike Insurance Mandatory in India?

An individual usually prefers a two-wheeler/bike as a commute mode to avoid traffic on Indian roads. Regardless of what mode of transportation you choose, ensure to abide by the laws and follow traffic rules. If you are a two-wheeler owner, have suitable bike insurance coverage. As per the Motor Vehicles Act, third-party bike insurance is a mandate. However, it is always recommended to choose a comprehensive motor insurance plan. In this article, we have covered a comparison between a third-party and comprehensive cover under bike insurance.

Importance of Two wheeler Insurance in India

Purchasing an insurance plan that fulfills your requirements and remains cost-effective is essential for every two-wheeler owner. Before you zero down a plan, be careful and assess your requirements about the coverage that you would need. Bike insurance is important as it offers financial cover against incurred loss/damage and legal implication in case of adversity. When buying two wheeler insurance various factors affect the insurance premium such as the Insured Declared Value, the age of the bike, geographical location, and so forth. Before you make a final purchasing decision, look out for bike insurance online. Compare the various features, benefits, insurance premiums, etc. to make an informed decision.

Types of Bike Insurance Policies in India

In India, there are mainly two types of bike insurance policies:

1. Third-party Bike Insurance Policy: This policy is a mandate before plying on Indian roads. It offers protection against any third-party liabilities to anyone or for damage to their property while riding the two-wheeler.
2. Comprehensive Bike Insurance Policy: As the name suggests, it offers wider coverage to the two-wheeler. It offers protection against loss/damage due to any man-made or natural calamity, etc. Besides, it offers the option to extend the coverage beyond the basic benefits with an array of add-on covers.

*Standard T&C apply The key difference between a third-party liability cover and a comprehensive bike insurance cover is that of the coverage benefits. Choosing suitable bike insurance coverage is crucial given the risks associated with driving on Indian roads.

Third-Party Bike Insurance vs Comprehensive Bike Insurance

To help you make the right decision, we have made a grid below that will help you understand the benefits and limitations of each of it:

Parameters	Third-party Bike Insurance	Comprehensive Bike Insurance
Definition	It is a mandatory policy that takes care of the damages incurred to any third party as per the Motor Vehicles Act, 1988	This insurance policy offers the combination of both own damage cover and third-party liability and gives full coverage against all possible odds
Coverage	Compared to a comprehensive plan, the coverage offered is limited. It provides protection only against loss or damage to the third party	It offers protection against loss, damage, or theft in case of an unforeseen event. Besides it also offers a cover against all damages caused to the insured bike as well as a third party, their vehicle, and property
Add-ons	This policy offers no add-on cover option	You have the option to make your plan more enhanced by choosing various add-on covers such as Zero Depreciation, Engine Protection, 24x7 Roadside Assistance, etc.
Premium	Pocket-friendly when compared to a comprehensive insurance plan. The third-party premium rate is fixed by the insurance regulator, IRDAI	Higher when compared to a third-party insurance policy
Depreciation Rate	Bike insurance premium doesn’t get affected by the depreciation rate	Bike insurance premium does get affected by the depreciation rate

Note: The features may vary from insurer to insurer *Standard T&C apply

Wrapping It Up

No matter which insurance policy you buy, ensure to renew bike insurance timely to enjoy the benefits and ride worry-free. Follow road safety rules and keep the bike insurance documents to handy. You can also use the bike insurance calculator online to get a quote for the policy. Choose a comprehensive bike insurance plan for complete protection. Drive Responsibly and Remain Safe!     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.