Two-wheeler or bike insurance is the most effective way to safeguard your vehicle, as it provides financial support in the event of damage or accident.
The recent regulatory moves and the availability of more online bike insurance comparison alternatives are all promising indications. However, many customers still need help distinguishing between third-party and comprehensive bike insurance.
Thus, it is important to understand the benefits and limitations of each type of insurance so that an informed decision can be made.
What is Third-party Bike Insurance?
Third-party insurance for bikes is a basic insurance policy implemented in places like India. It covers any damage or injury you cause to another person or their property while using your bike. However, it doesn’t cover any damage to your own bike or injuries to you.
What is Covered in Third-party Bike Insurance?
- Injury to Others: This insurance will cover the costs in case you cause injury or death to someone else while you are riding your bike.
- Damage to Property: This insurance will pay for the repairs to someone else’s property, such as a vehicle or building.
- Legal Costs: If the third party takes legal action against you, this insurance will also cover the legal expenses.
What is Not Covered in Third-party Bike Insurance?
- Any kind of damage to your own bike will not be covered
- It will not cover injuries that you sustain while riding your bike.
- Any loss or damage to your items will not come under the policy.
- Unrelated accidents or incidents in which a third party is not involved, such as theft or natural disaster, will not be covered.
- Accidents happening while you’re under the influence of alcohol or drugs or engaging in illegal activities will not be taken into consideration.
What is Comprehensive Bike Insurance?
Comprehensive bike insurance provides broader coverage to customers. It incorporates everything covered by third-party insurance and protects you and your bike from a variety of dangers. It is not necessary but strongly recommended for complete protection.
What is Covered in Comprehensive Bike Insurance?
- Third-party Liabilities: It also covers injuries or damages to others, just like third-party insurance.
- Personal Damage: It covers damage coverage to your bike due to accidents, fire, theft, natural disasters, or vandalism.
- Damage During Transit: In case damage happens when it is being transported by road, rail, or air routes, it will be covered.
- Personal Accident Cover: It allows compensation for injuries or death of the rider.
- Add-ons: Optional extras include zero depreciation cover, engine protection, and roadside assistance.
What is Not Covered in Comprehensive Bike Insurance?
- Your bike’s normal wear and tear, depreciation, or breakdowns due to mechanical or electrical failures will not be covered.
- Accidents that take place while violating the law, engaging in illegal activities, or driving under the influence of alcohol or drugs are not considered.
- If you do not have a valid driving licence to claim bike two insurance, your claim will not be approved.
- Any damage due to careless riding is not covered.
- Also, damage caused by war or nuclear events is not covered by insurance.
Comprehensive vs Third-party Bike Insurance
Here are the parameters that distinguish between comprehensive and third-party bike insurance. It will provide you with the necessary information to pick the best insurance for your bike.
| Parameters | Third-party Bike Insurance | Comprehensive Bike Insurance |
| Legal Provisions | This policy is mandatory in India as per The Motor Vehicles Act of 1988.
This two-wheeler insurance offers limited coverage and it is recommended if you want a budget policy, if you rarely ride your bike or if your bike is already old. |
This policy is optional and it offers wider/exhaustive coverage.
It is more popular amongst riders as it offers complete coverage for your bike along with add-ons. |
| Add-ons | Third-party rules seldom include add-ons. The emphasis remains on providing the minimum legal cover for riding a bike on public roads. | With comprehensive bike insurance, you can customise it with add-ons for enhanced protection, such as zero depreciation, engine protection, roadside benefits, passenger cover, consumable cover, etc. |
| Premium Costs | Third-party bike insurance policy is less expensive, as the insurance regulator, IRDAI, fixes the rates of this policy. | The premium of a comprehensive bike insurance policy is higher than that of third-party insurance. |
| Claim Settlement | The bike insurance claim settlement process for third-party insurance focuses solely on repaying the third party for their damages. It is simpler than comprehensive coverage because it excludes claims for the insured’s own bike. | In comprehensive bike insurance, claim settlement includes compensation for third-party liabilities and bike damage. Insurers strive for efficient claim processing, often including surveys, documentation, and repair or replacement expenses. |
Comprehensive vs Third-party Bike Insurance – Which is Better for You?
If your priority is to protect your vehicle against a wide range of damage, injuries to passengers, vehicle theft, etc., then comprehensive insurance is the best option for you.
On the other hand, a third-party insurance policy is more limited and covers the damage caused to a third party. So, you can choose which one suits you the best.
Final Words
After understanding the differences, you can opt for the appropriate two-wheeler insurance online. Your insurance company will offer cashless repairs, smartphone-enabled self-inspection, swift claims, customised vehicle IDV, 24 7 support, and more.
You also have the option to upgrade fro