DIFFERENCE BETWEEN COMPREHENSIVE AND THIRD PARTY BIKE INSURANCE

Two-wheeler or Bike insurance remains the most sought-after protector of your vehicle, offering timely financial relief during damages and accidents. Understandably, the country-wide coverage is slowly but surely moving beyond the dismal 25% mark. Multiple factors, including the growing awareness, revised traffic laws, increased non-compliance penalties, and better claim settlement ratios of up to 93%, are responsible for a considerable improvement.

The sheer relevance of bike insurance is beyond any doubt. Recent proactiveness from regulators and an expanding playing field for online aggregators are encouraging signs. However, while the customer outlook is evolving quickly, the lack of clarity in differentiating between third-party and comprehensive bike insurance covers is not helping matters.

Let's Decode and Simplify Two Distinct Bike Insurance Coverages Available in India!

Third-party Bike Insurance

Third-party liability two-wheeler or bike insurance is mandated by the Indian law and its Motor Vehicles act. As the name reflects, it provides basic coverage for financial losses, property damages, or injuries to third parties.

 

Advantages	Limitations
Addresses damages to third parties	No coverage for losses/damages to own vehicles
Preferred for less-than-frequent rides	Not wise for regular/everyday use of two-wheelers
Suitable for old bikes	Considered unreliable for new bikes
Costs less	Insufficient coverage/personal accident cover only
Saves you from hefty fines	No add-ons, or scope for customization
Satisfies the legal compulsion	No compensation for thefts
Gives you some peace of mind	Keeps you underinsured and vulnerable

 

The Comprehensive Cover

The optional yet more popular comprehensive bike insurance brings all-inclusive coverage. In addition to third-party insurance features, it also takes care of two-wheelers on-damages caused by accidents, malicious acts, vandalism, sabotage, riots, terrorism, fire, and natural calamities.

 

Benefits	Shortcomings
Ensures extensive coverage	No provision for natural wear/tear of two-wheelers
Pays for third-party + own two-wheeler damages	Not valid for mechanical/electrical breakdowns
Covers bike thefts	No coverage in case of drunk driving instances
Variety of add-ons	Inadequate cover for rubber/fiber parts in the absence of add-ons
Handy during natural calamities	Does not stop the timely depreciation of your bike
Proves to be worthwhile spending	Excludes riding without a valid driving license
Results in complete peace of mind	Not applicable during wars or a nuclear attack

Key Differentiators

Third-party Bike Cover	Comprehensive Bike Insurance
Must-have for driving on Indian roads	It is discretionary
Bare minimum cover	Substantial coverage
Fixed offerings	Additional support via add-ons
Moderate protection	Exhaustive solution
Reduces expenses	Promotes worry-free driving

Which One to Choose?

Bike insurance facilitates a more carefree and secure driving experience, irrespective of the coverage you opt for. Third-party policies certainly tick boxes when it comes to fulfilling your legal obligations. That being said, in the long run, owing to their restrictions, they may not turn out to be the most thoughtful choices. That's where, as evident through the benefits mentioned above, comprehensive packages score with their single all-encompassing two-wheeler insurance plans.

FAQs

Q: Who gets to fix the rates for third-party bike insurance?

A: The regulatory body, IRDA (The Insurance Regulatory and Development Authority).

Q: Am I allowed to select the insured declared value (IDV) of my two-wheeler while buying a third-party liability policy?

A: Unfortunately, no. As an IDV clause comes into effect with the own-damage component, it can only be decided when purchasing a comprehensive cover.

Q: Is it possible to move from third-party coverage to comprehensive bike insurance at the time of policy renewal?

A: Yes, it is!

Q: How are higher premiums calculated for comprehensive two-wheeler policies?

A: Comprehensive covers assure all-around protection for your bike and come with relatively higher premiums that vary from one insurance provider to another. These charges combine own-damage premiums decided by insurers and third-party premiums assigned by IRDA depending on two-wheelers' engine capacities.

Q: Is there a specific tenure for which I have to take insurance for my new bike?

A: Yes, at least five years for third-party plans and three years for comprehensive two-wheeler policies.

No matter which insurance you finalize, please focus on its pros and cons, and explore all the options before you zero in on the right bike insurance coverage.

Quickinsure, one of the leading general/two-wheeler insurance brokers and policy-comparison portals, enables you to thoroughly study quotes from various reputed insurance providers in the country, identify, and pick the appropriate cover for your bike.