Third-Party Vs Comprehensive Two Wheeler Insurance

The basic purpose of two-wheeler insurance plans is to compensate the expenses arising due to two-wheeler damages or losses incurred by the third party or by the policyholder. On this note, two-wheeler insurance offers three types of plans, which are designed to cover third party expenses, standalone own-damage expenses and comprehensive expenses.

As per the Indian Motor Tariff, holding at least a third party insurance cover is a compulsion, whereas, owning a standalone own-damage insurance plan is recommended to reduce the financial burden occurred due to the damage or loss sustained by your two-wheeler after an accident or mishap. However, comprehensive insurance offers the coverage both these covers in one bundled plan. To purchase and avail these insurance policies to the fullest, you should understand their meanings and differences firstly.

What Is Third Party Two Wheeler Insurance Policy?

As the name suggests, a third party bike insurance is the type of insurance that covers for the expenses related to losses and damages that you may incur towards a third party after an accident with the involvement of your two-wheeler. It gives coverage for bodily injuries, death or property damages of the third party. The coverage for property damages is limited to Rs. 1 lakh, while, in case of death, the claim amount is decided by the court.

According to the Indian Motor Tariff, it is mandatory to own a minimum of third party insurance cover for every two-wheeler owner. To drive a two-wheeler without owning this insurance cover is illegal and getting caught driving without this insurance cover can impose a penalty on you. Hence, this basic insurance cover safeguards you from being punished or fined as well.

Benefits of Third Party Two-Wheeler Insurance Policy:

Two-wheeler third party insurance policy can bring in a host of benefits for policyholders such as:

• Fulfilling Legal Requirements – To own at least a third party two-wheeler insurance policy is mandatory in India as per the Indian Motor Tariff. Hence, it is crucial to always keep the third party plan active by timely renewal of the policy without any break. Failing to comply with this legal requirement can land you into trouble as riding a bike without an active insurance plan is an illegal and punishable offence.
• Physical Injury or Death of Third Party – The third party two-wheeler insurance covers your financial liability towards a third party for their physical injury or death caused by the insured two-wheeler vehicle during an accident or a mishap. 
• Property Damage of Third Party – The third party two-wheeler insurance provides coverage for any sort of property damage caused by the insured two-wheeler vehicle of the policyholder. It also compensates the damage or loss of the belongings of the third party.

What Is a Comprehensive Two Wheeler Insurance Policy?

A comprehensive two-wheeler insurance is a combination of both a third-party cover and an own damage cover, which gives your two-wheeler an extensive coverage from financial liabilities towards third-party and expenses of damages incurred by your own two-wheeler after an accident or any mishap. This cover offers coverage for expenses that may arise due to accidents, two-wheeler theft, and natural calamities.

In addition to these, the comprehensive insurance cover allows you to opt for various add-ons to give your two-wheeler an enhanced coverage, which may include zero depreciation cover, roadside assistance cover, return to invoice cover and so on. All these covers bring additional insurance services for you at affordable rates.

Benefits of Comprehensive Two-Wheeler Insurance Policy:

A Comprehensive Two-Wheeler Insurance Policy provides a number of benefits to policyholders which are as follow:

• Protection to the Third Party – In case a policyholder meets with an accident and as a result, injures or kills a third person, or damages the property of the third party, etc., in such a case, the costs associated with the same will be covered by a comprehensive insurance policy.
• Protection to the Insured Two-Wheeler – If a policyholder gets involved in an accident and  due to the severity of collision got its insured two-wheeler vehicle badly damaged, then, a comprehensive insurance policy will cover all expenses incurred in order to repair and restore your two-wheeler vehicle to its regular condition. 
• Protection Against Injuries and Death – In case the policyholder suffers injuries by meeting with an accident, in such a situation, all medical expenses will be covered by the insurance policy which you were insured under the comprehensive policy. Also, if the policyholder dies due to an accident caused while riding the two-wheeler, the comprehensive policy will ensure that the family members of the deceased get compensation. 

Difference Between Third Party vs Comprehensive Two Wheeler Insurance

1. Legality

To own a third party insurance cover is compulsory as per the Indian Motor Tariff, but the comprehensive insurance is mandatory to have by all the two-wheeler owners. Driving a two-wheeler without a third party insurance plan can make you charge with a fine of Rs. 2,000 and/or imprisonment of up to 3 months, on the other hand, no such penalty is applicable with a comprehensive insurance plan.

2. Coverage

The third party insurance cover gives you limited coverage, where it protects you only against damages or losses incurred towards the third-party. Whereas, the comprehensive insurance cover offers extensive coverage to insure your two-wheeler theft, loss, and damage due to accidents, fire, terrorist acts, natural calamities, etc. It also provides a monetary cushion against your liabilities towards a third party for their injuries, death and property damage.

3. Add-on cover

When it comes to extra coverage, the third party insurance cover offers only a personal accident cover on paying an additional premium. But with the comprehensive insurance plan, you can opt for multiple add-on covers like zero-depreciation cover, return to invoice cover, roadside assistance, consumable cover, NCB protection cover, and so on.

4. Premium Rate

As the third party insurance plan gives limited coverage to bike owners, its premium amount is less expensive, while, due to extensive coverage, the comprehensive insurance policy comes with a higher premium price as compared to the third party insurance policy.

Take Away

The information of different two-wheeler insurance plans helps you avail them to the fullest. Going through this article, we hope you would have understood the difference between comprehensive and third party two wheeler insurance. The above mentioned differences can help you compare and choose the most suited two-wheeler insurance plan as per your budget and requirements and utilize them in a better manner.

Also Read:

Consequences of Driving a Two Wheeler Without Insurance

Two Wheeler Insurance Claim Settlement

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.