Insuring your bike ensures that you stay on the right side of the law. Apart from that, an extensive insurance policy covers you financially against risks such as accidents, calamities, and theft. Read ahead to get an overview of Third-party Liability Policy and a Comprehensive Policy.
Third-party two-wheeler insurance is a mandatory policy that takes care of the financial losses you suffer due to injuries caused to another person, vehicle or property. It is mandatory by law in India as per the Motor Vehicles Act, 1988.
Comprehensive two-wheeler insurance is a combination of Third-party liability insurance and own-damage cover. It offers financial support against all kinds of damages caused to your bike as well as another individual, vehicle or property.
It covers the damages caused to another vehicle, person or property due to accidents.
It covers third-party liabilities and theft. It also covers any damage to your vehicle due to accidents, sabotage, fire, vandalism, terrorism and malicious acts, civil disturbances like riots, natural calamities like floods, earthquakes, etc.
Only the Inclusive Personal Accident Cover
Third-party bike insurance policy is less expensive. The insurance regulator, IRDAI, fixes the rates of third-party bike insurance policies.
The premium of a Comprehensive bike insurance policy has two components: The third-party premium (which is fixed by IRDAI) and the own-damage premium. Considering the increase in coverage, its premium is higher than that of third-party insurance.
This policy offers limited coverage.
This policy offers extensive coverage.
A Third-party bike insurance policy serves this major purpose - complying with the law of the land.
A Comprehensive bike insurance policy helps you take care of your own vehicle’s repair as well as another party’s losses. It contains the mandatory ‘Third-party’ cover. It also comes handy in case of any damage or loss due to reasons other than an accident. For example, dents on your bike because of a tree falling on it, or damages caused by fire are also covered.
Thus, a Comprehensive bike insurance policy is more useful than a basic Third-party insurance policy. However, the choice is with you. No matter which policy you choose, make sure to renew it in a timely manner to keep it active.