Third Party VS Comprehensive Two-Wheeler Insurance

Ever heard the term ‘spoilt for choice’? It feels lovely.

But it also makes you think hard before making the right choice.

It has to be the right one, after all.

The same goes while choosing bike insurance.

You have the option to choose between a Third-party and Comprehensive two-wheeler insurance. Read on to know more.

What is 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. 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.

What is Comprehensive Bike Insurance?

A Comprehensive two-wheeler insurance is a combination of third-party liability insurance and own-damage cover. This means 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 under a comprehensive insurance depends on the policy terms and conditions.

Third-Party VS Comprehensive Insurance

TypeThird-Party InsuranceComprehensive 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:

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- Consumable expenses
- Zero depreciation
- Return to invoice
- Engine protection
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.

Is Third-Party Bike Insurance better than Comprehensive Bike Cover?

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.

Can I reduce The Bike Insurance Cost?

You can use these tips to reduce your two-wheeler premium.

  • 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.
  • 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.

  • Asraf

    In the article it says if the vechile is too old I can go for third-party insurance. I would like to know how old is ‘too old’. Mine is 4 years old now

    • Roocha

      Hey Asraf, this depends on how you use your bike. If you are okay with using it even with some damages, then no need to worry about Comprehensive insurance! But if you love your bike make sure you protect it. As far as third party insurance is concerned, if you can bare the cost of repairs for own damage then get covered only for damages caused to third party else get a comprehensive cover! Hope this was helpful 🙂 Comprehensive also covers the theft of the bike, so if bike is costly then go for comprehensive.

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