Comprehensive vs Third Party Bike Insurance

Two-wheeler vehicles are a major source of daily commute for a large segment of people of India. Though bikes provide quick mobility and better traffic handling, they are more prone to accidents than four-wheeled vehicles. Hence, it is crucial for you to have your bike insured so that in case of an undesired event, you can get full benefits from your insurer. Besides, getting insurance for your bike will help you stay on the side of the law. Indian Motor Law mandates you to hold at least a third party insurance cover for your vehicle, failing which, you can be penalised. An insurance policy is a significant option that protects you against financial risks such as calamities, accidents, and theft. However, people are always confused, which type of insurance is best for bike? Majorly, there are two insurance types, and this article will cover the major aspects of both the insurance policies so that you can come to an efficient decision for yourself. Let us begin!

What is Comprehensive Bike Insurance?

Comprehensive bike insurance is an all-encompassing policy that offers complete protection for your bike against a wide range of risks. Unlike third-party insurance, which only covers damage or injury caused to others, comprehensive coverage protects your own vehicle as well. This type of insurance covers damages to your bike caused by accidents, fire, theft, natural calamities, vandalism, or any unforeseen events. It also includes third-party liability coverage for any injury or damage caused to others in case of an accident. Additionally, comprehensive bike insurance often provides benefits like personal accident cover, coverage for pillion riders, and optional add-ons such as roadside assistance or engine protection. This policy is a valuable choice for bike owners looking for extensive coverage and financial security in the event of an unfortunate situation, ensuring both their bike and their wallet are well-protected.

What is Third-Party Bike Insurance?

Third-party bike insurance is the most basic and legally required form of bike insurance. It covers the damages or injuries caused to third parties in an accident involving your bike. This includes bodily injuries or death, as well as damage to property belonging to others. However, third-party bike insurance does not cover any damages to your own bike or injuries to the rider. In India, third-party insurance is mandatory for all vehicles, ensuring that riders are financially responsible for any harm caused to others. While it provides essential protection against legal liabilities, it offers limited coverage compared to comprehensive insurance, which also includes protection for your own bike and personal injuries.

Comprehensive vs Third-Party Bike Insurance

The fundamental difference between a comprehensive and third-party two wheeler insurance is that of coverage benefits. While third-party insurance covers only the liabilities of a third-party, comprehensive insurance is more inclusive and covers third-party liabilities along with any damage to your bike. Comprehensive insurance also offers a range of add-on benefits that can help you save a large sum of money in an accidental case. The below-given table will provide you with a broad understanding of which insurance is best for bike comprehensive or third party?

	Third-Party Bike Insurance	Comprehensive Bike Insurance
What is it?	This insurance policy only covers the damages caused to a third-party vehicle.	This insurance policy provides own-damage cover and third-party liabilities.
What does it cover?	It has limited coverage. In it, the insurer will only cover the damage caused by you to the third-party vehicle in case of an accidental event.	This is a more extensive insurance plan. It will cover your vehicle against damage, loss, and theft. The insurer will pay for all damages caused to both the parties involved in the accident.
Add-Ons	Unfortunately, this policy only covers the costs of damage caused to the vehicle of a third-party.	This policy offers multiple add-ons such as return to invoice, zero-depreciation, and roadside assistance.
Pricing	The premium cost for this policy is low.	The premium cost for this policy is always higher than third-party insurance.
Which one to buy?	You should opt for this one if your bike is old and you rarely ride the bike.	This is a highly functional policy, and you must go for it if you have bought a new bike. Also, you can opt for it if you regularly commute and spend a large time riding your bike.

Advantages and Disadvantages Comprehensive Bike Insurance

It is quite obvious that comprehensive bike insurance is more valuable than third-party insurance. Still, the costs involved might keep your mind in the struggle of which type of insurance is best for bike and is it profitable to spend more money on comprehensive bike insurance? Let us uncover that by listing some of the merits and demerits of both the policies.

Merits of Comprehensive Bike Insurance

• It covers the damages of your bike.
• It protects you from any third-party liabilities.
• It offers you the option to customise your Insured Declared Value (IDV) that is the current market value of your bike.
• It provides protection against damage caused by natural calamities.
• You can claim last-invoiced value for your bike along with costs spent on road tax in case your bike gets stolen, provided you have a Return to Invoice cover.
• You can get money for any personal damage caused by an accident to you.

Demerits of Comprehensive Bike Insurance

• It costs significantly more than the third-party two wheeler insurance.
• It doesn’t cover regular wear and tear of the bike.
• The policy does not protect from yearly depreciation of your bike.

Advantages and Disadvantages Third-Party Bike Insurance

Merits of Third-Party Bike Insurance

• This policy will protect you from costs incurred from losses of a third-party vehicle in case of an accident.
• As this insurance is mandatory by the law, you won’t have to bear any hefty bike insurance fine if you have this policy.

Demerits of Third-Party Bike Insurance

• This policy won’t cover for damages caused to your bike.
• You can not customise your IDV if you have this insurance.
• The policy won't compensate you in case your bike gets stolen.

Frequently Asked Questions

1. Do comprehensive insurance offer cashless repairs?

It depends on the insurance company from which you are buying the policy. Although, most insurers offer cashless options in their comprehensive insurance policy.

2. What conditions will void my insurance policy?

You won’t get any compensation from your policy if you are riding under the influence of alcohol, riding without a valid license, or have damages caused by your own negligence.

3. Which is more expensive: Third-Party or Comprehensive Insurance?

Comprehensive bike insurance is generally more expensive than third-party insurance due to its broader coverage, including both your bike and third-party damages.

4. How does Third-Party Insurance differ from Comprehensive Insurance?

Third-party insurance covers only third-party damage, while comprehensive insurance covers both third-party liabilities and damages to your own bike.

5. Can I skip buying Third-Party Bike Insurance in India?

No, third-party bike insurance is mandatory in India by law. It protects against damages to others in case of an accident.

6. Why do riders prefer Comprehensive Bike Insurance?

Riders prefer comprehensive bike insurance for its extensive coverage, including protection for their own bike, third-party liabilities, and optional add-ons.

7. Why is Comprehensive Bike Insurance costlier than Third-Party Insurance?

Comprehensive bike insurance is more expensive due to its wide coverage, including theft, natural disasters, and personal accident protection, unlike third-party insurance.

8. Is Comprehensive Bike Insurance mandatory?

No, comprehensive bike insurance is not mandatory by law. However, it offers more protection than the legally required third-party insurance.

9. Why is Third-Party Bike Insurance mandatory?

Third-party bike insurance is mandatory to ensure that riders are financially responsible for any damages or injuries caused to others in an accident.

Conclusion

To sum it up or answer in brief, which two wheeler insurance is best comprehensive or third party? Well, it entirely depends on your requirements. If you have just bought a new bike or are a full-time rider, comprehensive bike insurance is the recommended option. Conversely, if your bike is old-aged and you wish to spend the least money on the insurance, you can opt for third-party two wheeler insurance. *Standard T&C Apply 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.