How is third party insurance for bike different than a normal bike insurance?
We all know how much Indians love and prefer riding two-wheelers over any other commutation options. India is known for its traffic-jammed streets, busy markets, and narrow lanes, and it requires a vehicle that is not just speedy but also flexible enough. Hence, two-wheelers make a perfect choice for the Indian roads. But the more you use a vehicle, the more the cost is required to maintain it. This cost of maintenance doubles when your vehicle is not insured. As you know, streets are always prone to accidents no matter how safely you ride. For this reason, you need two-wheeler insurance which will cover you against various types of damages.
A two-wheeler insurance policy typically covers two-wheeler vehicles like bike, scooter, etc. against the damage caused to a third-party person or property. This is mandatory two-wheeler insurance that every two-wheeler owner has to buy. In case a person is caught riding a two-wheeler without the insurance papers, then he/she will have to face legal procedures. Other than the third-party insurance, the other option in two-wheeler insurance plans is a comprehensive plan. This plan provides the policyholder with cover against additional losses other than the third-party damage like loss, theft, damage of the insured vehicle, etc.
Insurance companies also sell two-wheeler insurance under specific categories like bike insurance or scooter insurance. If you want to select between third-party insurance for bike or a comprehensive cover, then read further to know the difference between both and their benefits.
Third-party insurance for bike is mandatory for every two-wheeler owner. It covers only the basic purpose of providing coverage for the loss caused to the third party due to your vehicle.
Comprehensive two-wheeler insurance – A comprehensive cover is a combination plan of both third-party insurance for bike and own damage insurance cover. This type of insurance plan will cover you for the third-party loss as well as damage caused to your own vehicle due to an accident, natural calamity, man-made event, etc. You can also get extra coverage for specific losses by opting add-ons. These are available by paying an additional premium. Having this insurance will cover you against damages related to third-party liabilities and save you from fines as it is legally mandated in India.
Third-party two-wheeler insurance – There are certain limitations of third-party insurance for bike. It doesn’t cover the cost of damage caused to your own vehicle. You are not offered any add-ons to cover other losses. Third-party insurance for two-wheeler doesn’t allow to customise IDV.
Comprehensive two-wheeler insurance – Comprehensive insurance for bike covers many major damage costs, yet it comes with some limitations. It does not cover your bike’s natural wear and tear. Also, it doesn’t cover timely depreciation or damage caused to fibre and rubber parts of the vehicle unless you opt for a specific add-on.
Third-party insurance for two-wheeler– The coverage provided by third-party insurance for bike is limited as it only covers you against loss or damage caused to a third party.
Comprehensive two-wheeler insurance – The comprehensive insurance for two-wheelers provides wide coverage against damages, theft, loss, etc. It covers both third-party liabilities as well as own damage.
Third-party insurance for two-wheeler – Third-party insurance has less expensive premiums as it comes with limited coverage.
Comprehensive two-wheeler insurance – Comprehensive insurance for two-wheelers is comparatively expensive but saves you against bigger losses when you claim.