Difference between Comprehensive and Own Damage (OD) Two Wheeler Insurance

Posted on: Aug 3, 2022 | 3 mins | Written by: HDFC ERGO Team

Difference between Comprehensive and Own Damage (OD) Two Wheeler Insurance

Comprehensive Vs. Own Damage Bike Insurance

People looking for a convenient transport mode need not look any further than buying a bike. Two wheelers have always been popular for a number of reasons. To start with, you will end up spending a lot less while buying a two wheeler as compared to a car. Similarly, the running costs of a two wheeler are also low. Also, buying comprehensive two wheeler insurance will cost you less as compared to other modes of transport.

Since there are so many options to choose from, you never run out of options. People who like to ride fast can opt for a superbike. If you are someone who wants a bike primarily for commuting within the city, you can buy a commuter bike. People who enjoy going off-roads can buy an adventure bike. And if you are someone who wants to make a lot of road trips, a cruiser bike is for you.

As is the case with bikes, there are a few types of two wheeler insurance policies to choose from. As per the Motor Vehicles Act, it is mandatory to buy a third party liability policy. However, it might not always be the best option for your bike. Apart from third party liability policy, you can buy either comprehensive two wheeler insurance or own damage two wheeler insurance.

Comprehensive Two Wheeler Insurance

If you are looking for exhaustive coverage for your bike, a comprehensive two wheeler insurance policy is the right way to go. A comprehensive plan offers you maximum bike coverage, including the benefits of a third party liability policy and own damage insurance. The plan also provides compensation in the case of a personal accident and covers damage during transit.

A comprehensive plan is usually a bit more expensive as compared to a third party liability plan or own damage cover. However, it offers a lot more coverage than either of them as well. As a result, it is a more cost-effective method in the long run.

Here are the features and benefits of comprehensive two wheeler insurance.

● The plan includes the benefits of a third party liability policy and own damage cover

● It offers your bike additional protection

● The plan includes no claim bonus, which will help you reduce the policy premium if you do not make any claims

● Offers coverage for natural calamities such as cyclones, typhoons, earthquakes, man-made calamities such as strikes, riots, vandalism, theft, fire-related accidents and so on

● It offers compensation in the event of a personal accident that includes disability, injury or even death

● You can opt for riders along with a comprehensive plan to further enhance its coverage and opt for specific covers

Own Damage Two Wheeler Insurance

The own damage two wheeler insurance is apt for people who have opted for only a third party liability policy and do not wish to buy comprehensive insurance. A third party liability policy offers coverage for any damages caused to other vehicles, property or individuals. However, it does not offer any sort of protection for damage to your bike. The own damage cover offers that additional bit of coverage along with a third party liability policy. However, you can purchase a standalone own-damage bike insurance policy ONLY if you already have a valid third-party only bike insurance plan and not otherwise. You are not allowed to purchase an own-damage two wheeler insurance plan without fulfilling the legal requirements of the country.

The own damage cover ensures that any damages to your bike are duly covered. These damages could be due to natural calamities such as cyclones, typhoons, earthquakes, etc. The policy also offers coverage against man-made calamities such as theft, vandalism, fire-related accidents, etc.

One of the major benefits of your own damage cover is that it does not necessarily have to be tied to your third party liability policy. You can do your research and opt for a policy that offers better coverage at affordable prices. This allows you to pick a better policy.

Here are the features and benefits of own damage two wheeler insurance.

● It offers protection to your bike in the case of an accident

● It offers no claims bonus for every year that you do not make any claims, thereby reducing your future premiums

● You can opt for your own damage cover along with a third party liability insurance to enhance its coverage

● The premium of own damage insurance is lower than a comprehensive two wheeler insurance

● The policy offers coverage for cyclones, earthquakes, typhoons, riots, vandalism, theft, fire-related accidents, etc.

Third Party Liability Policy

Since you cannot purchase an own-damage plan without having a valid third-party-only insurance policy, you need to understand what is a third-party only insurance policy first. A third party liability policy is the bare minimum policy that anyone can get for their bike. It gives you the legal clearance to ride your bike. A third party liability policy ensures that you have coverage for legal liabilities in the event of an accident involving another vehicle, person or property.

In the policy, the first party is the insured or the policyholder. The second party is the insurance provider, and the third party is any individual that claims damage caused by the first or second party.

When you buy a third party bike insurance Policy, it offers coverage of up to INR 7.5 lakhs for damages to property or vehicle. In an accident causing bodily damage or injury to a third party, the Motor Accident Claim Tribunal (MACT) decides the compensation.

Here are some of the prominent benefits of buying a third party liability policy.

- In the event of an accident, it compensates for the damages caused to the third party. Thereby reducing any financial burden that you have regarding the same.

- It gives you the necessary legal clearance to ride your bike and do so without any stress. If you are caught driving without a policy, a hefty fine awaits you.

- You can buy a third party liability policy online and save considerable money and time on the same.

- The policy has your back in the event of an accident involving another vehicle. It offers maximum compensation of up to INR 7.5 lakhs.

Though a third party liability policy can offer you the bare minimum coverage required for legally riding your bike, it might not be enough. You can opt for comprehensive bike insurance. Though the premium is a bit on the higher side, it offers you a robust policy with adequate coverage. If you do not wish to spend money on comprehensive two wheeler insurance, you can choose your own damage insurance along with a third party liability policy.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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