Difference between Comprehensive & Third-Party Two Wheeler Insurance
The primary difference between a Third-Party and Comprehensive Bike Insurance is that of coverage benefits. While a third-party bike insurance only covers for third-party related liabilities, a comprehensive bike insurance covers for your bike’s own damages as well and, also gives you the option to extend your coverage beyond just basic benefits, with a range of add-ons and covers.
Choosing the best kind of bike insurance for your two-wheeler is crucial given the extent of risks associated with riding two-wheelers in and around cities. Moreover, post the new traffic laws and hefty fines associated with not having a valid bike insurance, you really cannot afford to not have one!
To make your decision of buying the right bike insurance easier for you, we’ve put down the benefits and limitations of both a third-party and comprehensive bike insurance so you can evaluate your choices and make an informed decision accordingly.
Difference between Comprehensive and Third-Party Bike Insurance
|Comprehensive Bike Insurance
|Third-Party Bike Insurance
|What is it?
|A Comprehensive bike insurance policy combines both a third-party liability insurance and own-damage cover to give you complete coverage against all the odds!
|Third-party bike insurance is a mandatory policy that takes care of the damages caused to third-party, it is mandatory by law in India as per the Motor Vehicles Act, 1988.
|Is it Mandatory?
|No, it is optional.
|Yes, it is mandatory in India as per the Motor Vehicles Act, 1988.
|This policy offers extensive coverage. Your bike will be covered against theft, loss, and damage. It provides monetary support against all kinds of damage caused to your bike and another individual, vehicle or property.
|This policy offers limited coverage. A third-party liability bike insurance will protect you only against damage/loss towards the third party.
|What is Not Covered?
|It excludes depreciation, personal accident cover, mechanical or electrical breakdown, driving without a valid license or in case of violating traffic rules, and when the policy has expired.
|It excludes the damage caused to your own vehicle, personal accident cover, mechanical or electrical breakdown, driving without a valid license or in case of violating traffic rules, and when the policy has expired.
|With this policy, you can opt for beneficial add-ons such as Zero-Depreciation Cover, Return to Invoice Cover, Roadside Assistance and Consumable Cover amongst others.
|This policy provides only Personal Accident Cover.
|Why Should You Buy?
|Recommended if you need complete coverage for your bike along with add-ons.
|Recommended if you rarely ride your bike or it’s too old already.
|The premium of a comprehensive bike insurance policy is higher than that of third-party insurance.
|Third-party bike insurance policy is less expensive, as the insurance regulator, IRDAI, fixes the rates of this policy.
|Your insurance company conducts the claim process. It depends on the type of policy you’ve purchased.
|The Motor Accident Claims Tribunal supervises the claim process.
Let's understand Comprehensive and Third-Party Bike Insurance in detail:
What is Comprehensive Bike Insurance?
A combination of both a third-party cover and an own damage cover, a Comprehensive Bike Insurance gives your bike extensive coverage by covering for everything from third-party related liabilities to damages to your own bike due to unforeseen circumstances such as natural calamities, accidents, collisions, etc.
Additionally, you can also opt for one or a combination of various add-ons to give your two-wheeler better coverage. 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.
Benefits of a Comprehensive Bike Insurance
Limitations of a Comprehensive Bike Insurance
- Doesn’t cover for your bike’s natural wear and tear
- It cannot protect your bike from its timely depreciation over time
- Usually, unless you’ve taken a specific add-on, the fiber and rubber parts of your bike aren’t fully covered within a standard bike insurance
- As a standard rule, any bike insurance won’t be able to cover for losses or damages caused due to a nuclear attack or war.
- 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 refer to any damages and losses caused after the accident. Therefore, such damages won’t be covered for 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 a 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 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.
What is a Third-Party Bike Insurance?
As the name suggests, a Third-Party Bike Insurance is the type of bike insurance that only covers for the minimum, mandatory requirement of covering for losses and damages related to Third-Party Liabilities.
For example; If you happen to get into an accident with another bike, your Third-Party bike insurance will cover for the losses caused to the third-party. However, it wouldn’t be able to cover for damages and losses caused to your own bike.
Benefits of a Third-Party Bike Insurance
Limitations of a Third-Party Bike Insurance
- It doesn’t cover for your bike’s own damages or losses; whether that stems from 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.
- Bike’s Own Damages - As mentioned above, a Third-Party Bike Insurance only covers for third-party damages and losses, and won’t cover for 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 - The law speaks likewise, your claim won’t be accepted if you were 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 a Comprehensive Bike Insurance?
- To protect your dear bike: If you really care about the condition of your bike, a comprehensive bike insurance 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 for 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.
Factors You Should Consider Before Buying a Comprehensive Bike Insurance
- Process of Buying & Claiming: One of the things that deters people from insurance are the processes. Hence this should be one of the most important aspects you should look for. In the case of Digit, all our processes are quick and all within a few clicks, online.
- Service Benefits: What makes one bike insurance provider stand out from another is the kind of unique service benefits they offer. Look for service benefits and see what makes more sense to you.
- Claim Settlement Speed & Ratio: An insurance company’s claims settlement ratio will give you an idea about how successfully they fulfil claims. At Digit, our claim settlement is currently at 92% for two-wheelers.
- Right IDV - IDV is Insured Declared Value, it 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. We suggest you choose higher IDV, you know why? In the case of the total loss of your bike, a higher IDV leads to higher reimbursements. We let you customize your IDV as per your choice because we want you to make the right decision without any compromise.
- 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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