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Third-Party vs. Comprehensive Bike Insurance: Which One Should You Choose?

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2 months ago

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Bike Insurance

Riding a bike without bike insurance can lead to legal action, as the law mandates it. That is important not just for the safety of others but also your own. However, before buying bike insurance, you must know the ins and outs of the bike insurance you are about to buy. Mainly, bike insurance is of two types: first is two-wheeler insurance for third parties, and second is comprehensive insurance for your own safety. In this article, we will explain both these types of bike insurance to help you choose.

What is Third-Party Bike Insurance

Third-party bike insurance coverage is coverage that is mandated by law. So, if you plan to ride a bike on Indian roads, you ought to have two-wheeler insurance with third-party coverage. This type of insurance offers coverage to a third party in case of some unfortunate event, such as property damage, death, or injury. It is important to note that it doesn’t cover any damage that may occur to you or your vehicle. So, third-party bike insurance excludes vehicle and personal damages. 

What is Comprehensive Bike Insurance?

Comprehensive bike insurance coverage is basically your own coverage, offering broader coverage than third-party bike insurance coverage. That means you are not only covered in case of a third-party injury but also any damage to you and your vehicle and much more. Comprehensive bike insurance is expensive as it offers comprehensive protection covering theft and personal damages.

Comprehensive vs Third-Party Bike Insurance: Key Difference 

Comprehensive vs Third-Party Bike InsuranceComprehensive Bike Insurance PolicyThird-Party Bike Insurance Policy
Coverage Comparison: What It CoversAs its name implies, a comprehensive bike insurance policy is comprehensive in nature and optional. It offers coverage for both third-party and own damages, almost covering against all odds.Two-wheeler insurance for third parties is mandatory by law and offers coverage for damage or loss to any third-party injury or damage.
Coverage Comparison: What is Not Covered?
To understand the exclusion of a comprehensive bike insurance policy, you need to read through the policy you are buying. In normal circumstances, damages that are consequential in nature after the accident are not covered unless you have an add-on covering it. Further mechanical or electrical breakdown (unless an add-on)or driving without a driving license is also excluded.Two-wheeler insurance for third parties does not coverOwn damagesInfluence of Intoxicating SubstanceViolation of traffic rules, etc.
Addons


Comprehensive bike insurance allows you to optimise your bike insurance policy with add-ons.The party bike insurance policy doesn’t offer any add-ons.
Cost Implication
The cost of the best comprehensive two-wheeler insurance in India depends on factors like your bike’s age, model, IDV, location, NCB, etc.The cost of a third-party bike insurance policy is decided by IRDA and fixed annually.
Legal Requirements in India
A comprehensive bike insurance policy is not mandated but is advised for broader coverage.Compulsory for any bike owner to ride bikes on Indian roads under the Motor Vehicle Act 1988.

Conclusion

It is important to understand your needs before choosing between third-party and comprehensive bike insurance. Then, based on your budget, choose between the two. For instance, if you buy a very expensive new bike to run 30km every day to your office in a metropolitan city, it is better to go for a comprehensive bike insurance policy. On the other hand, if you have an old bike that is on the verge of breaking down, a third party works best. Understand the difference and buy the best two-wheeler insurance in India accordingly.

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