Third Party vs Comprehensive two-wheeler Insurance

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 about Third-party Liability Policy and a Comprehensive Policy.

What does it mean?

Third Party

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, vehicle or property. It’s mandatory by law in India as per the Motor Vehicles Act, 1988.


A 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 you and your bike as well as another individual, vehicle or property.

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 vehicle 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?

1. Injury caused to self

2. Damage caused to own vehicle

3. Damage caused due to

  • Theft
  • Natural Calamities
  • Sabotage
  • Fire
  • Civil Disturbance
  • Normal Wear and Tear
  • Mechanical or electrical Breakdown

4. Damage caused when

  • Riding without a valid license
  • Riding under the influence of drugs or Alcohol
  • The policy is not active

1. Damage caused due to

  • Normal Wear and Tear
  • Mechanical or electrical Breakdown

2. Damage caused when

  • Riding without a valid license
  • Riding under the influence of drugs or Alcohol
  • The policy is not active

What are the add-ons?

Inclusive Personal Accident cover (limited coverage)


  • Zero Depreciation
  • Return to Invoice
  • Pillion Rider
  • Roadside Assistance

Which is less expensive?

Third-party bike policy is less expensive. 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 better?

This policy offers limited coverage.

This policy offers extensive coverage

Practically Speaking

A Third-party bike insurance serves this major purpose - complying with the law of the land. If your bike leaves a dent in another vehicle, your insurer can pay for the car’s repair.

A Comprehensive bike insurance helps you take care of your own vehicle’s repair as well as 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. However, the choice is with you. No matter which policy you choose, make sure to renew it in a timely manner.