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Comprehensive vs Third-Party Two-Wheeler Insurance

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Comprehensive vs Third Party Two-Wheeler Insurance

There are commonly two types of bike insurance policies in India Third-party Bike Insurance and Comprehensive Bike Insurance policy.

The Third-party two-wheeler policy provides basic coverage and is mandatory while driving on the Indian streets. It protects you against Third-party Liabilities such as injuries to someone or damages to their property while riding your bike.

On the other hand, the Comprehensive Bike policy offers wider coverage. Along with Third-party Liabilities, it protects your bike against damages due to an accident, man-made liabilities, riots, theft or natural liabilities.

The below table will differentiate the two policies and arm you with relevant knowledge to select the right policy for your bike.

Third-party vs Comprehensive Bike Insurance Policy

PARAMETER THIRD-PARTY LIABILITY COVER COMPREHENSIVE COVER
Legal Requirement Third-party two-wheeler insurance is mandatory in India as per The Motor Vehicles Act, 1988. Comprehensive bike insurance is optional. Because it offers wider coverage, it is more popular amongst riders.
Meaning It takes care of the financial losses due to injuries caused to another person or damages to their property. Comprehensive offers financial support against all kinds of damages caused to your bike as well as protects you against third-party liabilities.
Coverage 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, vandalism, fire, malicious acts, sabotage, terrorism, riots or natural calamities.
Exclusions 1. Damage caused to own vehicle 2. Personal accident cover 3. Damage caused when riding without a valid license 4. Riding under the influence of drugs or alcohol 5. When the policy is not active 1. Damage caused due to normal wear and tear 2. Mechanical or electrical breakdown 2. Personal accident cover 3. Damage caused when riding without a valid license 4. Riding under the influence of drugs or alcohol 5. When the policy is not active
Add-ons Not applicable Add-ons available on ACKO are:  Zero Depreciation Add-on, Bike Engine Protect, Outstation Emergency Add-one, Roadside Assistance Add-on, Personal Belongings - Damage/Theft, Key Protect and Consumables Cover.
Costs 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.
Suitability This policy offers limited coverage. This policy offers extensive coverage.

Why Should You Select Comprehensive Bike Insurance Policy?

Comply with the Law

A Third-party bike insurance policy serves one major purpose of complying with the law of the land. As the Comprehensive policy covers both the Own Damage and Third-party Liabilities component, you avoid monetary penalties for not complying with the law.

Wider Coverage

It protects you from damages in case of an accident, natural calamities or riots. It also covers theft. It also covers damage/loss due to reasons other than an accident. For example, dents on your bike because of a tree falling on it, damages caused by fire, or losses when your bike gets stolen.

Customization

When you buy a Comprehensive policy, you can choose from a wide range of add-ons to enhance the coverage of your policy. These add-ons are not applicable in the case of a Third-party bike insurance policy.

No matter which policy you choose, make sure to renew it on time to enjoy its benefits. Also, whatever policy you select, you can also switch the plan while renewing the policy.

Learn more about Two Wheeler Insurance Policy.

Benefits of Buying Two-wheeler Insurance Policy On ACKO

Say Bye to Paperwork

Whether you are buying a Third-party or Comprehensive policy, buying a policy on ACKO is instant, paperless and hassle-free. No tedious documentation or length form-filling! All you have to do is select, pay and immediately start enjoying the benefits.

Save Money

ACKO doesn’t hire any middlemen. This means you purchase bike insurance directly from ACKO at a lower cost. Plus, with our lucrative multi-year bike insurance policies, you get to save more while buying bike insurance.

Make Informed Decision

When you buy on ACKO, everything is transparent. You get to check the premium amount of different policies and add-ons, go through terms and conditions and even talk to our support team to all your queries solved. No hidden terms!

Frequently Asked Questions About Bike Insurance Policy

FAQs Related to Two-wheeler Insurance

Can I skip buying Third-party bike insurance while riding in India?

No. It is mandatory to own Third-party insurance while driving or riding in India. If you are caught riding your bike without this basic policy, you will have to pay heavy penalties and sometimes can even lead to imprisonment.  

Why is it mandatory to buy a Third-party bike insurance policy?

A Third-party two-wheeler insurance policy ensures that third parties are compensated in case of injuries or damages to their property in case of an accident involving your bike. 

Is it possible to select IDV while buying a Third-party bike insurance policy?

No, you can only select IDV while buying a Comprehensive bike insurance policy. This is because the concept of IDV is applicable only in the case of the Own Damage component, which is not covered in Third-party policy.

Why is Comprehensive bike insurance more preferred by the riders?

Comprehensive policy covers both third-party liabilities as well as damages to your bike in case of accidents, fire, natural calamities, riots. It also compensates in case your bike gets stolen. Plus, you can customise bike policy by selecting add-ons based on your requirements. 

Can I switch from a Third-party to a Comprehensive Policy while renewing my bike insurance policy?

Yes, you can switch from Third-party to Comprehensive bike insurance policy and vice-a-versa while renewing your policy. 

Why is Comprehensive bike insurance costlier than third-party policy?

As discussed above, the Comprehensive policy covers both Third-party Liabilities and Own Damages. Since Comprehensive bike Insurance offers a wider coverage and more benefits, it is costlier than Third-party bike insurance. 

How are the premium rates decided for Third-party and Comprehensive bike insurance policies? 

In the case of a Third-party bike insurance policy, the premium is decided by IRDAI based on the bike’s engine cubic capacity. Coming to the case of a Comprehensive policy, the premium is determined by two components - Third-party component premium and the Own Damage component premium. The insurers will decide upon the premium amount they want to charge on the Own Damage component depending on various factors such as settlement ratio, services, etc. Hence the premium amount for a Comprehensive policy varies from insurer to insurer. 

 

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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

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