What's the Difference Between Third-Party and Own Damage?
Published On Apr 27, 2022 10:00 AM By InsuranceDekho
The most basic sort of two-wheeler insurance plan accessible is third-party two-wheeler insurance.
Table of Contents
- Distinction Between Own-Damage vs. Third-Party Insurance
- The Benefits of Third-Party Bike Insurance
- Two-Wheeler Own Damage Insurance Benefits
- Take Away
The most basic sort of two-wheeler insurance plan accessible is third-party two-wheeler insurance. It covers any third-party liabilities (bodily injuries, death, and/or property damage) arising from a road accident or other catastrophe involving the insured's two-wheeler. While the amount of compensation in the case of third-party bodily injury or death is determined by a court of law, the amount of compensation for third-party property damage is limited to Rs. 1 lakh. A standalone own damage bike insurance is a type of two-wheeler insurance plan that protects the policyholder's insured bike against any losses or damages incurred due to an accident or mishap.
Distinction Between Own-Damage vs. Third-Party Insurance
The following is a breakdown of the differences between own damage and third party insurance:
Third-party liabilities, such as bodily injury, death, and property damage, are covered by this sort of insurance. According to the Motor Vehicles Act of 1988, it is required, whereas own damage insurance offers coverage for damage to the policyholder's vehicle. It is not required, but it gives more protection than third-party liability insurance.
Only third-party liabilities are covered, and in own-damage only expenses are covered.
It is mandatory to get third-party insurance, and failing to do so can result in hefty fines. Furthermore, if you have an accident, you will not be responsible for the costs; nonetheless, own-damage insurance covers a variety of costs associated with own-damage, including natural disasters, vandalism, accidents, total damage, and theft. Add-on covers are available for purchase and will earn you NCB.
Amount of Premium
It has a cheap rate for third-party insurance, but a higher premium for own damage insurance that reduces with time.
Rate of Depreciation
The depreciation rate does not affect third-party insurance, however, it does have an impact on personal damage insurance.
The Benefits of Third-Party Bike Insurance
The following are some of the benefits of having a third-party bike insurance policy:
This strategy has a simple documentation procedure that only requires a few formalities to complete. Because the motorcycle is not covered by this plan, fewer inspections and checks are necessary. You may also purchase this package whenever it is convenient for you.
Simple Online Procedure:
Almost all insurance firms now provide their services online, and you may buy an insurance plan with only a few mouse clicks. Purchasing an insurance plan becomes considerably easier and more convenient with an online buying procedure.
Two-Wheeler Own Damage Insurance Benefits
A solo own-damage two-wheeler insurance plan provides customers with the following benefits:
A Variety of Insurers to choose from
Bike insurance customers may now choose between third-party insurance and own-damage insurance from a variety of insurance providers, thanks to the introduction of standalone own-damage bike insurance policies.
Own Damage Plan Tenure Flexibility
Due to the constraint of maintaining a long-term third-party plan, new bike owners are no longer obligated to obtain a long-term comprehensive insurance policy. They can now have a 5-year long-term third-party insurance policy plus a one-year standalone own-damage policy that they can renew every year.
Third-Party Bike Insurance is a sort of bike insurance that only covers the bare minimum of Third-Party Liabilities losses and damages. Own Damage insurance protects you financially if your car is damaged in an accident, natural catastrophes, man-made calamities, fire, theft, or other circumstances. Read on to discover the advantages and restrictions of the Standalone Own Damage Two-Wheeler Insurance Policy, as well as how to acquire OD two-wheeler insurance online. As a result, you must cover your car at the very least with Third-Party Insurance, as required by The Motor Vehicles Act of 1988. While Own Damage Insurance is optional, it will provide your two-wheeler with superior coverage.
Also Read: Factors Affecting the Cost of Your Reliance Car Insurance Policy