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DIFFERENCE BETWEEN COMPREHENSIVE AND THIRD PARTY BIKE INSURANCE
Two-wheeler or bike insurance is the best way to protect your vehicle, providing financial assistance in case of damages or accidents. More people are insuring their two-wheelers in India, driven by increased awareness, new traffic laws, higher penalties for not having insurance, and better claim settlement rates by insurance companies.
The importance of two wheeler insurance is clear. Recent actions by regulators and the availability of more online bike insurance comparison options are positive signs. However, many people still find it challenging to understand the difference between third-party and comprehensive bike insurance.
Let's break down and simplify the two types of bike insurance available in India!
What is Third-Party Bike Insurance?
Third-party bike insurance is a basic insurance policy required by law in many places, including India. It covers any damage or injury you cause to another person or their property while using your bike. However, it doesn't cover any damage to your own bike or injuries to you.
What is Covered in Third-Party Bike Insurance?
- Injury to Others: If you cause injury or death to someone else while riding your bike, this insurance will cover the costs.
- Damage to Property: If you damage someone else's property, such as their vehicle or building, this insurance will pay for the repairs.
- Legal Costs: If the third party takes legal action against you, this insurance will cover the legal expenses.
What is Not Covered in Third-Party Bike Insurance?
- Your Bike: Any damage to your own bike.
- Your Injuries: Injuries you sustain while riding your bike.
- Personal Belongings: Loss or damage to your personal items.
- Unrelated Incidents: Incidents not involving a third party, such as theft or natural disasters.
- Illegal Activities: Accidents occurring while you're under the influence of alcohol or drugs or engaging in illegal activities.
Advantages and Limitations of Third-Party Bike Insurance
| Advantages of Third Party Insurance | Limitations of Third Party Insurance |
|---|---|
| Addresses damages to third parties | No coverages 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 |
What is Comprehensive Bike Insurance?
Comprehensive bike insurance provides broader coverage. It includes everything covered by third-party insurance and also protects you and your bike against various risks. It's not mandatory but highly recommended for full protection.
What is Covered in Comprehensive Bike Insurance?
- Third-Party Liabilities: Just like third-party insurance, it covers injuries or damages to others.
- Own Damage: Comprehensive bike insurance covers own damage coverage to your bike due to accidents, theft, fire, natural disasters, or vandalism.
- Personal Accident Cover: Compensation for injuries or death of the rider.
- Damage During Transit: Damage to your bike while it's being transported by road, rail, or air.
- Add-Ons: Optional extras like zero depreciation cover, engine protection, and roadside assistance.
What is Not Covered in Comprehensive Bike Insurance?
- Depreciation: Normal wear and tear and depreciation of your bike.
- Mechanical or Electrical Failure: Breakdowns due to mechanical or electrical issues.
- Illegal Activities: Accidents while engaging in illegal activities or violating the law.
- Drunk Driving: Accidents caused while driving under the influence of alcohol or drugs.
- No License: You must have valid driving license to claim bike two insurance, without license your claim will not be approved.
- Negligence: Damage due to careless riding.
- War or Nuclear Risks: Damage caused by war or nuclear events.
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Difference Between Third-Party Bike Vs Comprehensive Bike Insurance
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FAQs on Comprehensive and Third-Party Bike Insurance
Q1. Does third-party bike insurance cover theft?
Ans: No, third-party bike insurance does not cover theft. Third-party insurance only covers damage or injury you cause to another person or their property.
Q2. Does comprehensive bike insurance provide full coverage?
Ans: Yes, comprehensive bike insurance provides full coverage, including third-party liabilities, damage to your own bike, personal accident cover, and other risks like theft and natural disasters.
Q3. How do I check if my bike insurance is third-party or comprehensive?
Ans: You can check if your two wheeler insurance is third-party or comprehensive by reviewing your policy documents or contacting your insurance provider for confirmation.
Q4. Is third-party insurance enough for a bike for the police?
Ans: Yes, third-party bike insurance is legally sufficient for a bike to satisfy police requirements.
Q5. Is comprehensive bike insurance mandatory?
Ans: No, comprehensive bike insurance is not mandatory, but it is highly recommended for complete protection.
Q6. Can I upgrade third-party bike insurance to comprehensive bike insurance while renewal?
Ans: Yes, you can upgrade your third-party two wheeler insurance to comprehensive two wheeler insurance at the time of renewal. Contact your insurance provider to discuss the options and process.
Q7. Why is comprehensive insurance more expensive than third-party?
Ans: Comprehensive insurance is more expensive than third party insurance because it offers broader coverage, including protection for your own bike, personal accident cover, and additional benefits like theft and natural disaster coverage.
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