Third-party VS Comprehensive Two-Wheeler Insurance
Buying a bike insurance policy is financially beneficial at the time of mishaps. Getting your beloved bike insured will give you peace of mind. You would want the value for your hard earned money by investing in a bike insurance policy. Thus, buying the correct type of two-wheeler insurance policy is also equally important. Here, you have the option to choose between a Third-party and Comprehensive two-wheeler insurance. Read on to know more online two-wheeler insurance.
What Is the Meaning of Third-party Bike Insurance?
A Third-party two-wheeler insurance is a mandatory policy that takes care of the financial loss you suffer due to injuries caused to another person, a vehicle or a property. It’s mandatory by law in India as per the Motor Vehicles Act, 1988. The meaning here is, it is compulsory for you to buy at least a third-party policy if you want to ride your bike. So, if you are looking for a basic insurance cover for your two-wheeler, you could opt for a third-party liability policy. However, your own bike is not covered under this policy. You can effortlessly buy a bike insurance policy online.
What Is the Meaning of Comprehensive Bike Insurance?
A Comprehensive two-wheeler insurance is a combination of third-party liability insurance and own-damage cover. The meaning here is, it offers financial support against all kinds of damages caused to you and your bike as well as another individual, vehicle or property. It even includes the repair costs in case of any damage due to sabotage, fire or natural calamities. Different companies offer different insurance covers. So, the extent of the coverage and price, under a comprehensive insurance depends on the policy terms and conditions.
Now that you know the meaning of both the types of policies, let’s see the difference between them:
Third-party VS Comprehensive Insurance
| Type | Third-Party Insurance | Comprehensive Insurance |
|---|---|---|
| What does it cover? | - It covers the damages caused to another vehicle, person or property due to accidents. | It covers third party liabilities as well as any damage to your two-wheeler due to accidents, sabotage, fire, vandalism and theft, terrorism and malicious acts, civil disturbances like riots, natural calamities like floods, earthquakes, etc. |
| What does it not cover? | Damage caused to: Own vehicle Injury caused to: Self Damage caused due to: - Theft - Natural calamities - Sabotage - Fire - Civil disturbance - Normal wear and tear - Mechanical or electrical breakdown Damage caused when: - Riding without a valid licence - Riding under the influence of drugs or alcohol - The policy is not active | Damage caused due to: - Normal wear and tear - Mechanical or electrical breakdown Damage caused when: - Riding without a valid licence - Riding under the influence of drugs or alcohol - The policy is not active |
| What are the add-ons? | - Personal Accident cover | - Zero depreciation - Return to invoice - Pillon Rider - Roadside Assistance Note: Emergency medical treatment is covered by a Comprehensive bike insurance policy. There is no need for an add-on. |
| Which is the cheapest? | The coverage is low. So, the Third-party bike policy is the cheapest. The insurance regulator, IRDAI, fixes the rates of third-party component in bike insurance every year. This is on the basis of the engine capacity. | The premium of a comprehensive bike insurance has two components: The third-party premium (which is fixed by the IRDAI) and the own-damage premium. Considering the increase in coverage, the premium is higher than that of a third-party insurance. |
| Which is the best? | This has a limited coverage. | - This has an extensive coverage. - The more, the better. |
Now that you know the difference between both the types of policies, let’s see which is the best type of bike insurance policy:
Is Third-party Bike Insurance Better than Comprehensive Bike Cover?
Third-party and comprehensive types of car insurance policies serve different purposes. Not really. They both serve different purposes. A Third-party bike insurance serves only one purpose—help you avoid paying for others’ damage. So, if your bike leaves a dent in another car or bike, your insurer can pay for the car’s repair.
A Comprehensive bike insurance helps you take care of your own repair AND another party’s losses. It contains ‘Third-party’ cover. It also comes handy in case of any damage or loss due to reasons other than an accident. Dents in your bike because of a tree falling on your two-wheeler or damages caused by fire or rain, or even theft is covered by the policy.
So, a Comprehensive bike insurance is always more useful than a Third-party insurance.
When to Buy Third-party, When to Buy Comprehensive?
Remember, your Comprehensive insurance comes with a Third-party component cover. So, it’s always an ideal option to buy a comprehensive cover. However, if you are still confused, then consider these points:
- If your bike is too old, not used very often, you could go for a third-party policy. You can pay for the damages caused to your bike in case there was a mishap.
- If you don’t want to pay from your pocket for future repairs or make sure that you don’t lose all the money in case your bike gets stolen, it would be smart to opt for a comprehensive policy.
How to Buy a Third-party and Comprehensive Bike Insurance Policy?
If you want to buy a third-party bike insurance online, you need to, fill the policy form, make payment and get your policy documents. If you are looking for a comprehensive bike insurance policy, you will have the option of choosing add-ons to increase the scope of your policy. Then the insurance company will get your bike inspected and you should soon receive your policy documents.
You can buy a bike insurance policy in the following three ways, there will be no difference between the final policy document irrespective of the way you choose:
- Online
- Through an Agent
- By Visiting the Branch
Online
You can directly buy a bike insurance policy by visiting Acko’s website online. All you need to do is select the type of policy, fill in your details, select add-ons if required and proceed towards making the payment.
Through an Agent
You can get in touch with an agent, who will guide you on which policy could be suitable for your needs. After you fill the necessary form and submit the documents, your agent will further guide you on making the payment. You will receive your policy documents either by post or from the agent.
By Visiting the Branch:
Once you select the insurance company for getting your bike insured, visit their branch and ask for the policy details. At the branch office, you will get an application form. Fill it with your details and make payment. You may have to visit the insurance company again or you will receive the documents by post.
At the time of claim, it will be beneficial if you are aware of the inclusions & exclusions of your bike insurance policy along with the terms & conditions of the insurance company. So, read the policy documents carefully.
How to Buy a Bike Insurance Policy From Acko General Insurance?
Buying a bike insurance policy from Acko General Insurance is very simple. All you need to do is keep your details handy, go online, choose the desired types of policy, i.e. third-party or comprehensive, and make the payment. Here are more details on how to buy a bike insurance policy from acko.com:
- Get your bike’s details — manufacturing date, model specifications, the registration number, and market value.
- Check the IDV of the model of your bike online. You would want to select a policy with minimum premium yet an extensive coverage. Choosing the correct IDV will help you achieve this aim.
- Login to your account on acko.com and select a policy, you think is fit for your requirements.
- You have the option of choosing multiple add-ons if you buy a comprehensive bike insurance policy. Add-ons help to enhance the scope of your policy.
- Fill out the application form and pay the premium. Also, it is important to go through the inclusions and exclusions of the policy for a smooth claim process in the future.
Can I Reduce the Bike Insurance Cost?
You can use these tips to reduce the price of your Two-wheeler Insurance Policy:
- Pay a larger part of the repair bill by opting for a higher voluntary deductible and get a discount on your premium.
- Don’t claim every small expense and accumulate the No Claim Bonus (NCB) to get a discount on your premium.
- Reduce the Insured Declared Value. The higher the IDV, the higher is the premium and vice versa.
- Select only those add-ons that best suit your bike’s requirements. Cancel any unnecessary add-ons. This will greatly help in decreasing the price of your policy.
- Renew your policy on time. You are bound to lose out on your No Claim Bonus (NCB), if the policy is not renewed within 90 days from the date of expiry.
- Install extra security features, as insurers are bound to offer you a lower premium rate if your bike is more secure against theft, vandalism and any incidental damage.
You can find a lot of online insurance calculators that could help you arrive at the premium amount for your bike’s insurance. Both third-party car insurance and comprehensive car insurance have their pros and cons. So, compare all the various options available and select a bike insurance policy depending on your coverage requirement.
