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  • Wednesday, August, 2022| Today's Market | Current Time: 09:15:19
  • Without a doubt, a two-wheeler is the most preferred mode of transport by millions of Indians. It is considered an ideal way to commute through heavy traffic and is low on maintenance. A lot of people these days are consciously even opting for eco-friendly scooters to beat the rise in pollution and fuel price surge.   

    If a new bike launch has got you thinking about purchasing it? Then you sure need to know about the different two-wheeler insurance policies to protect your bike. With an increase in the number of road accidents, it has become imperative to safeguard yourself and your bike from any kind of damages.  

    To begin with there are two types of bike insurances:

    1. Third-Party Bike Insurance: 3rd party bike insurance is a mandate by law and it is the most basic type of two-wheeler insurance. This type of insurance covers any damage caused to a third party’s vehicle, property, or injuries to the third-party person due to your bike. 

    2. Comprehensive Bike Insurance: As the name suggests this type of insurance gives you and your bike complete coverage under many unforeseen events like accidents, vandalism, theft, natural disaster, etc.

    Now that you are familiar with the basic meanings of the above two insurances, let us also present you with a comparison between them so that next time around when you want to invest in two wheeler insurance online you know how to evaluate and choose a plan that suits your needs best.

    Third-Party Insurance
    It is a simple insurance plan that covers you financially if there is damage to a third person’s bike, property, or personal injuries caused due to collision of your bike.  
    Comprehensive Bike Insurance
    This insurance plan covers third-party damages, own bike damages due to an accident. This insurance also covers your bike against robbery, natural calamities like earthquake, fire accidents, damage due to riots, terrorism etc…

    Let’s use some parameters to draw the comparison.

    a. Coverage: Let see what are the events each of these insurances covers.

    b. Non-Coverage: let’s check what are events that are not covered by each of these insurances.

    Third-Party Insurance
    You are not covered for:Any damage to your bike due to an accident.Personal accident coverage is not provided.This policy doesn’t get active if the damage is caused because you were riding the bike under the influence of alcohol. If you don’t carry a valid driving license when the accident happens the policy doesn’t stand good.  
    Comprehensive Bike Insurance
    The policy is not active if you were riding the bike- Under the influence of alcohol.Not holding a valid driving license.Any normal wear and tear or mechanical problems.Self-inflicted damage to the bike.

    c. Add-ons: Let’s explore the various add-ons of these policies for maximum benefits.

    Third-Party Insurance
    You can only add a personal accident cover.
    Comprehensive Bike Insurance
    You can opt for several add ons to maximize the coverage benefits like roadside assistance add-on,  zero depreciation add-on, engine protection add-on, return to invoice add on to name a few. 

    d.  Premium Cost: let’s learn which of these insurance policies are easy on our pocket.

    Third-Party Insurance
    The insurance plan is very affordable and less expensive.  Insurance Regulatory and Development Authority of India (IRDAI) fixes the premium amount for this insurance. 
    Comprehensive Bike Insurance
    The premium is comparatively high because of all the additional coverage it provides to a bike owner. The premium is broken down into two components, one is the fixed premium of IRDAI for third-party insurance coverage and another component of the premium is for the own damage coverage and add-ons.

    Which Insurance is Better – Final Verdict

    Practically speaking third-party bike insurance is only essential to abide by the law. Two-wheeler companies include the mandatory insurance charges in the on-road price for the ease of the customers. But it makes sense to upgrade your insurance to comprehensive coverage so that you and your priced possession get holistic protection. You get third-party coverage, damage protection for your bike, and two-wheeler insurance add-ons that can extend several additional benefits. No matter what kind of insurance you may have, the key lies in the timely renewal of insurance to enjoy all the benefits it offers.

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