Difference Between Third-Party And Standalone Own-Damage Two-wheeler Insurance
Want to know the difference between third-party vs standalone own-damage two-wheeler insurance? Read along to know more.
What is a Third Party Insurance Policy for a Two-Wheeler?
A third party insurance policy is a mandatory requirement for every two-wheeler in India according to the Indian Motor Tariff. Riding a two-wheeler without one could lead to a fine of Rs. 2,000 and/or imprisonment for up to 3 months. This type of bike insurance policy helps cover damages caused to the third party such as bodily injuries, death and property damage in case of an accident. For two-wheelers, this type of policy compensates up to Rs. 1 lakh in case of property damage.
What is Not Covered By Third Party Two-Wheeler Insurance?
The following are the instance in which no claim is paid for by the third party insurance:
- Damages caused Due to Illegal Driving. This category includes underage driving, driving without a license, driving while under the influence of alcohol, drugs or any other intoxicating substances.
- Any form of consequential damages.
- Damages caused by natural disasters.
- Damages caused for using the two-wheeler beyond its prescribed limitations.
- Damages that occur due to accidents in locations outside the prescribed geographical limits of the insurance policy.
- Own-damages to the policyholder’s two-wheeler.
What is a Standalone Own-Damage Policy for Two-Wheelers?
A standalone own-damage policy is the one for you if you’re looking to protect your own two-wheeler. This type of policy is not mandatory, but it is a wise choice to purchase one along with the third-party insurance. In case of accidents, it will compensate for the damages to your two-wheeler. Own-damage covers that are standalone or part of comprehensive policies can avail the No Claim Bonus (NCB). This is the reward given to the policyholder for a claim-free year. Moreover, the bonus amount increases with every consecutive claim-free year from 20 to 25 per cent, going all the way up to 50%. Lastly, unlike third party covers, own-damage covers provide compensation for natural and manmade calamities, fires and theft.
Also Know: Two Wheeler Insurance Add-ons
What is Not Covered by a Standalone Own-Damage Policy for Two-Wheelers?
The following are the things that are not covered under standalone own-damage covers:
- Illegal Driving. Similar to third party insurance covers in cases where an accident happens due to underage driving, driving while intoxicated, driving without a license etc. no compensation is provided for the damages to the two-wheeler.
- Mishaps that occur outside the prescribed geographical limits, will not be compensated for.
- Damages that occur due to consequential losses are not covered.
- Non-accidental damages such as two-wheelers such as mechanical or electric failures, breakdowns and wear and tear will not be compensated for by the own-damage policy.
- Damages to the third party are not covered by the standalone own-damage covers.
Conclusion
In an overview, third-party insurance policies provide protection for third party liabilities in case of a mishap while a standalone own-damage policy covers costs for the policyholder’s two-wheeler. There are some circumstances under which compensation is not provided, such as illegal driving, accidents outside geographical limits or non-accidental damages etc. Lastly, some crucial aspects of insurance policies can be availed as add on to the policy to provide flexibility for individual needs.
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Zero Depreciation Two Wheeler Insurance
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
