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Difference between Comprehensive and Third-Party Bike Insurance Explained
Choosing the right two-wheeler insurance is essential for every bike owner, therefore, it is important to understand the difference between third-party and comprehensive bike coverage.
Comprehensive bike insurance covers both your own vehicle and third-party damages, offering wider protection. Whereas third-party bike insurance covers third-party liabilities towards others.
Thus, choosing the best type of bike insurance for your two-wheeler is crucial given the extent of risks associated with riding two-wheelers in and around cities. So, to make your decision to buy the right bike insurance easier for you, we’ve put down the benefits and limitations of both third-party and comprehensive bike insurance!
Table of Contents
What is Comprehensive Bike Insurance?
A comprehensive bike insurance policy acts like a raincoat for your beloved two-wheeler, providing it with all-round protection. It gives your bike extensive coverage by covering damage or loss to third-party related liabilities and even to your own bike due to unforeseen circumstances such as natural calamities, accidents, collisions, etc.
Comprehensive two-wheeler insurance also offers the option to buy add-ons for enhanced protection, thus, protecting you against all odds!
For example, you can opt for our Roadside Assistance cover while buying your comprehensive bike insurance and get breakdown-related assistance whenever the need arises.
What is Third-Party Bike Insurance?
As the name suggests, a Third-Party Bike Insurance is the type of bike insurance that only covers the minimum, mandatory requirement of covering for losses and damages related to third party vehicle, person, or property in case of an accident involving your two-wheeler.
Also, having at least a third-party two-wheeler insurance is mandatory by law in India; however, it does not cover any damage to your own vehicle, neither does it allow you to opt for any add-ons.
For example, if you happen to get into an accident with another bike, your third-party bike insurance will cover the losses caused to the bike that collided with you. However, it wouldn’t cover damages and losses caused to your own bike.
Comprehensive vs Third-Party Bike Insurance
Here is a simpler breakdown of the difference between third-party and comprehensive two-wheeler insurance to help you understand the limits and benefits of each:
Benefits of a Comprehensive Bike Insurance
Limitations of a Comprehensive Bike Insurance
It doesn’t cover for your bike’s natural wear and tear.
It cannot protect your bike from depreciation of its parts over time.
Usually, unless you’ve taken a specific add-on, the fiber and rubber parts of your bike aren’t fully covered within standard bike insurance.
As a standard rule, any bike insurance won’t be able to cover losses or damage caused due to a nuclear attack or war.
Exclusions in a Comprehensive Bike Insurance
Riding Drunk - Since this goes against the law, any claims made wherein you were found riding under the influence of alcohol won’t be covered.
Riding without a Two-Wheeler License - Well, you shouldn’t be riding without a license anyway! But if it’s found that you were, when you are making a claim- the respective bike insurance claim won’t be covered!
Driving without a Valid License Holder - As per the law, we can’t cover for you if you were driving with a learner’s license, without a valid license holder in the front passenger seat.
Consequential Damages - Consequential damages refers to any damage and losses caused after the accident. Therefore, such damage won’t be covered in your bike insurance claim! Unless of course you’ve bought a specific add-on that covers for it.
Contributory Negligence - To simply put it, don’t do things you aren’t supposed to! This means that, if you make a claim for the damage or loss caused because of your own negligence, it won’t be covered for!
Add-ons Not Bought - If you haven’t bought a particular bike insurance add-on, you obviously can’t claim for its benefits! Hence, always opt for useful add-ons before the situation even arises! You never know when you may just need it.
Benefits of a Third-Party Bike Insurance
Limitations of a Third-Party Bike Insurance
It doesn’t provide coverage to your bike’s own damages or losses; whether it occurs due to an accident, collision, fire or even a natural calamity.
You can’t customize your bike insurance policy with add-ons or covers.
You can’t customize your IDV in the case of a third-party bike insurance
It doesn’t compensate for the theft of your bike.
Though it may help you comply with the law; however, a third-party bike insurance policy does not provide enhanced coverage when compared to a comprehensive car insurance plan.
Exclusions
Bike’s Own Damages - As mentioned above, a third-party bike insurance only covers third-party damages and losses and won’t cover your bike’s own damages and losses.
Riding Drink - Abiding by the law, no insurance provider will be able to accept your bike insurance claim if you were found to be riding drunk.
Riding without a Valid License - If you only have a learner’s license and were driving without a valid driving license-holder in the front passenger seat, then your claim won’t be accepted as you will be considered riding without a valid license.
Third Party Motor Insurance Claims Intimated or Booked in 2020-21
Check out the number of Third-Party Motor Insurance Claims intimated or booked during 2020-21. The highest number of third-party insurance claims intimated/booked were by National Insurance Company Limited, and the Oriental Insurance Company Limited booked the least insurance claims.
Why Should You Upgrade to Comprehensive Bike Insurance?
Upgrade to a comprehensive insurance policy from third-party insurance to avail of the following benefits of comprehensive bike insurance policy:
To protect your dear bike: If you really care about the condition of your bike, a comprehensive bike insurance policy is the way to go! In case of an accident, natural calamity or any other unfortunate incident where you accidentally damage your bike, your comprehensive bike insurance will cover you.
To cover both own damages and third-party liabilities within one bike insurance policy: One of the best things about comprehensive bike insurance is the fact that you and your bike will be covered from both own damages and third-party liabilities within one single plan.
To benefit from additional covers: It is only within a comprehensive bike insurance policy, and an own damage bike insurance where you can also opt for different add-ons to customize your policy just the way you like, for just the kind of coverage you need. This benefit is not available with third-party bike insurance policy.
To get Personal Accident Cover: With a comprehensive car insurance policy, you don’t have to buy a personal accident cover separately because it is already included in a comprehensive policy.
Note: If you already have an active third-party two-wheeler insurance policy, you can buy a separate Standalone Own Damage Policy, to cover damage or loss to your own bike as well.
Why Should You Buy Digit Bike Insurance?
We treat our customers like VIPs, know how
Cashless Repairs
4400+ Cashless Network Garages for you to choose from across India
Smartphone-enabled Self Inspection
Quick and Paperless claims process through a Smartphone-enabled self-inspection process
Super-fast Claims
Average turn around time for two-wheeler claims is 11 days
Customize your Vehicle IDV
With us, you can customize your vehicle IDV as per your choice!
24*7 Support
24*7 call facility even on National Holidays
Factors to Consider Before Buying a Bike Insurance Policy
Here’s some important things you should consider before buying a two-wheeler insurance policy:
Determine Your Requirements: Assess your bike insurance needs and select the policy that suits the best. For example, if you ride your two-wheeler in a densely populated area or an area prone to natural calamities, opting for comprehensive bike insurance with add-ons like roadside assistance, etc., is the best decision.
Consider Your Bike’s Age and Value: If you have recently purchased a new bike or own a luxurious model, go for comprehensive bike insurance as you can customise it with add-ons for enhanced protection. While third-party coverage may be enough for comparatively older bikes, depending on your risk tolerance and financial plan.
Consider Your Bike Usage: Also, whether your bike is new or old, if you use it less you can go only for a third-party liability policy as it ensures legal compliance while providing basic protection for your bike.
Get the Right IDV: IDV or Insured Declared Value is the maximum amount your insurer will give you in case your bike is totally damaged or stolen. We know low premiums are luring but it will not give you maximum financial benefit. Always check the IDV you are being offered and not just the premium. At Digit, we let you customize your IDV as per your choice because we want you to make the right decision without any compromise.
Claim Settlement Speed & Ratio: An insurance company’s claims settlement ratio will give you an idea about how successfully they fulfil claims.
24x7 Support: You never know when you need help, therefore always ensure that your bike insurance provider is always available for you.
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