Third Party vs. Comprehensive: Which Insurance Plan Should You Buy for Your Bike?

Posted on: Aug 17, 2022 | | Written by:

Third Party vs. Comprehensive: Which Insurance Plan Should You Buy for Your Bike?

Third Party Vs. Comprehensive Bike Insurance

Did you know that it is essential that every two-wheeler has to be insured because of the Motor Vehicles Act of 1988? The insurance policies have been proved beneficial to the insured person as well to his/her family. The bike insurance cover safeguards the rider from significant damages. Also, it ensures to provide financial aid to the policyholder’s family in case of death of the same. Two-wheeler insurance policies also offer protection for the rider from risks caused by third-party injuries.

What is a Two Wheeler Insurance?

The agreement between an individual and an insurance company in which the insurer (company or group) provides cover for any damage, including accidents, natural disasters or thefts, is termed a Two Wheeler Insurance.

The bike insurance coverage depends upon the kind of policy purchased. Some insurances cover every damage, even third-party losses, while others don’t. It is essential to compare the plans of different insurers before finalizing and buying a policy.

What are the Two Types of Two Wheeler Insurance?

The two most bought policies are Third Party Insurance and Comprehensive Bike Insurance. Third-Party Bike Insurance only covers the third person’s liabilities, while Comprehensive Bike Insurance, though more expensive than Third Party Bike Insurance, offers complete protection to the insured on the road.

Third-Party Insurance

This policy protects the insured from liabilities coming from damage, loss or injury to a third person. Here, a third party could be a third party property that incurred damage to the insured person’s motorbike or a person who has suffered an injury due to the bike. According to the Motor Vehicles Art 1988, it is mandatory for everyone to have a Third Party Two Wheeler Insurance so that all riders should be insured against their responsibilities to other people’s loss.

Features and Benefits

1. Third Party Cover’s premium starts at Rs. 538*.

2. The buying process of the Insurance is hustle free as it can be easily purchased online with HDFC Ergo.

3. The Personal Accident Covers, if there, can be high up to INR 15 Lakhs.

4. The claim settlement is quick and easy with companies like HDFC Ergo.

Things Covered in HDFC Ergo Third Party Insurance

1. Third Party Property Damage

2. Personal Accident

3. Third Party Liability

Things Excluded in HDFC Ergo Third Party Insurance

1. Contractual Liabilities

2. Irresponsible Driver Behaviour

3. Depreciation

2. War and Nuclear Risks

3. Non-road accidents*. Limits on claims.

Importance of Third Party Two Wheeler Insurance

It provides you with the most basic coverage to the insured person and covers the policyholder for losses/damages incurred to a vehicle, person or property. It is also mandatory for all riders, and if the bike is not insured, then the owner is fined Rs. 2000, which can also lead the owner to go to jail for three months.

Reasons to Buy Third Party Two Wheeler Insurance

1. Helps avoid unwanted penalties.

2. Cost-effective unwanted insurance policy.

3. Financial assistance and legal cover.

4. Quick and easy purchase process.

Comprehensive Two Wheeler Insurance

This policy protects the insured’s two-wheeler in the best way possible. The Comprehensive Bike Insurance plans cover your vehicle in all forms- from rough terrains to busy streets. This insurance plan protects the policyholder from theft, accidents and other damages. According to the Supreme Court’s new directive, Compulsory Personal Accident cover is a must for every rider.

Benefits and Features of Comprehensive Two Wheeler Insurance

1. Protection from Third Party Liabilities.

2. Customizable policies and offers.

3. Freedom to include add-ons.

4. Protection during all calamities.

5. Bike theft compensation.

6. Cost-Effective options.

7. Coverage for Personal loss and damage.

Things Included in Comprehensive HDFC Ergo Two Wheeler Insurance

1. Accidents.

2. Theft

3. Fire

4. Explosions

5. Natural or Man-made calamities.

6. Personal Accident Cover

7. Third Party Liability

Things Excluded from Comprehensive Insurance

1. Electrical and Mechanical Breakdown

2. Depreciation

3. Illegal Driving

4. Contributory Negligence

5. Consequential Damages

Reasons to Buy Comprehensive Two Wheeler Insurance

1. Affordable rates and big discounts.

2. Limitless claims, unlike Third Party Insurance.

3. Wide range of available policies.

4. Quick and easy purchase.

Importance of Insurance Comparison

There are hundreds of schemes and policies of motor insurance available in the market. Hence, it is essential to compare the different plans of different companies to shortlist policies according to your needs and budgets and finally choose the correct motor insurance.

Benefits of Third Party Two Wheeler Insurance and Comprehensive Two Wheeler Insurance

Coverage Against	Comprehensive Insurance	Third Party Insurance
Accidental Damage	Yes	No
Theft	Yes	No
Natural Calamities	Yes	No
Insurance for damage to a third party property	Yes	Yes
Personal Accident	Yes	Yes
Insurance for injury to a third person	Yes	Yes
Depreciation Value (Zero)	Yes	Yes

Conclusion

Bike Insurance is a must in India as per the Motor Vehicles Act of 1988. There are two popular bike insurance policies. The first is Third Party Insurance, and the second is Comprehensive Insurance. The former is that policy which covers only the mandatory and minimum requirements of two-wheeler insurance. It covers the damages and losses to Third-Party Liabilities. In contrast, the latter is a combination of both and own damage cover and a third party cover. It provides extra coverage and protection as it has everything under cover- from thefts, natural or man-made calamities, accidents, and unforeseen circumstances to third-party liabilities and personal cover. This policy also gives the freedom to select from many available advantages as an add-on.

Frequently Asked Questions

1. Which insurance policy is more expensive - Third Party or Comprehensive?

The prices of the premium for both insurance policies depend upon the CC of a bike, and both follow the set of rules laid by IRDAI. Comprehensive Insurance is far more expensive than Third Party Insurance.

2. How are Third Party and Comprehensive Insurance different?

The significant difference in both policies is the extent of coverage. Comprehensive plans have additional coverage against theft and calamities along with all the coverage options of Third Party Insurance.

3. Will I face the consequences if caught without a third-party insurance policy?

In India, riding without third-party insurance cover is a punishable offence. Heavy penalties are imposed on the bike owner if found without one. You will also have to pay a fine of INR 2000, with or without three-month imprisonment.

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

Here’s why comprehensive bike insurance is a better bet than third-party insurance

HDFC ERGO Comprehensive Car Insurance Add-ons

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