How Is A Third Party Bike Insurance Different From A Comprehensive Bike Insurance?
Read to know how a third party bike insurance is different from a comprehensive bike insurance.
Table of Contents
Choosing ideal bike insurance is very important given the extent of risks associated with riding a bike. Moreover, new traffic regulations and fines imposed when caught riding a bike without valid bike insurance, one cannot afford to not have a bike insurance policy. People often opt for third-party or comprehensive bike insurance. The primary difference between third party bike insurance and comprehensive insurance is coverage benefits provided under the two types of insurance policies. While third party insurance covers only third party liabilities, comprehensive insurance covers third party liabilities and costs of own damages.
Below mentioned are some differences between a third party and comprehensive bike insurance, which will help you make an informed decision while purchasing a bike insurance policy.
How Is Third-Party Bike Insurance Different From Comprehensive Bike Insurance?
Following is the difference between the third party and comprehensive bike insurance:
|
Basis |
Third-Party Bike Insurance |
Comprehensive Bike Insurance |
|
What Is It? |
Third-party two-wheeler insurance policy is mandatory to have for every two-wheeler owner. This policy only covers third party liabilities. This policy has been made compulsory for every two-wheeler owner in India as per the Motor Vehicles Act, 1988. |
Comprehensive bike insurance provides maximum coverage as it covers third party liabilities and costs of own damages. This policy is not mandatory, but once bought there is no requirement to buy another type of insurance policy. |
|
Coverage |
This policy provides limited coverage. Under this type of bike insurance policy financial protection is provided against damage/loss towards the third party. |
This policy provides extensive coverage. Under this type of bike insurance, your two-wheeler is covered against theft, loss or damage. This policy provides monetary help for third party liabilities and own damages. |
|
Add-ons |
Third-party two-wheeler insurance offers a Personal Accident Cover add-on. |
Comprehensive two-wheeler insurance offers several add-on options such as Zero Depreciation Cover, Return to Invoice Cover, Roadside Assistance. |
|
Cost |
This type of two-wheeler insurance policy is quite affordable as it provides limited coverage. |
This type of two-wheeler insurance policy is expensive as compared to a third party insurance policy as it provides extensive coverage. |
Exclusions Under a Third Party Two-Wheeler Insurance Policy
Following are the aspects which are not covered under a Third Party Two-Wheeler Insurance policy:
- Two wheeler’s own damage
- Riding under the influence of alcohol/drugs/other intoxicants
- Riding without a valid license
Exclusions Under a Comprehensive Two-Wheeler Insurance Policy
Following are the aspects which are not covered under a comprehensive two-wheeler insurance policy:
- Riding under the influence of alcohol/drugs/other intoxicants
- Riding without a two-wheeler license
- Riding without a valid license
- Damages caused after an accident
- Contributory Negligence
To Conclude
Although it is mandatory to have a two-wheeler third party insurance policy while riding in India according to the Motor Vehicles Act, 1988 but when you purchase a comprehensive insurance policy, you need not purchase a third party insurance policy separately because a comprehensive insurance policy covers both third party liabilities and own damages. If you use your two-wheeler on a daily basis and want extensive coverage then you must consider a comprehensive two-wheeler insurance policy for your two-wheeler. In case you rarely use your two-wheeler then you must have a third party insurance policy.
Also Read:
Return To Invoice Bike Insurance Add-On Cover In Detail
Consumables Add On Cover In Bike Insurance And Its Benefits
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.
