If you own a bike or are planning to buy one soon, you should know that there is more to owning a bike than simply knowing how to ride it. Having a bike and taking care of it means that you should be well-equipped with the knowledge of its overall maintenance, know which documents you need to support your ownership of the two-wheeler, and know traffic rules.
One of the aspects to take care of when owning and using a two-wheeler is insurance. As a bike owner, you ought to be aware of the two common types of policies available. These are third-party liability bike insurance plans and comprehensive two-wheeler insurance plans. Of these, the third-party bike insurance policy is a compulsory purchase for two-wheelers in India, according to the Motor Vehicles Act, 1988.
However, comprehensive bike insurance is not mandatory. The bike owner can exercise discretion and decide whether to buy this policy and the several available add-ons, or not. So, should you buy a comprehensive bike policy? Or is a third-party liability insurance plan enough for your two-wheeler?
To answer this in detail, let’s take a look at what each of these policies have to offer.
Third-Party Liability Two-wheeler Insurance
One may imagine this as the fundamental form of two-wheeler insurance. It comes as a policy that shields you from the financial obligation you may face if your bike were involved in some form of damage to another vehicle.
Here, the third party is the person who has sustained the damage, and you are required to pay them. The first party is you, whereas the second party is your insurance provider. Once you understand this, it may be easier to understand how this sort of insurance functions.
Here are some of the inclusions of third-party liability bike insurance
to help you get a better idea of this sort of coverage.
- Third-party legal as well as financial liabilities
- Any physical injuries caused to the third-party
- Damage caused to third-party property
- Alongside this, when you buy a third-party bike insurance plan, you are also required to purchase a personal accident cover if you don’t already have one. A personal accident cover is a way to protect yourself as well as your family against the cost of hospitalisation if you were to sustain physical harm in a bike accident.
Comprehensive Two-wheeler Insurance
The term ‘comprehensive’ points to the fact that this policy includes a range of covers. You can choose from the add-ons available to make a comprehensive plan that suits you best.
Basic comprehensive coverage is commonly made of a third-party liability policy, a personal accident cover, and an own damage cover. Of these, the own damage cover is what protects you from having to face a dent in your savings due to bike repairs if your bike were to sustain any damage due to a mishap.
Suppose you were to face a bike theft (either parts or full), or your bike was to sustain some damage during a natural disaster (e.g., an earthquake), you can claim your comprehensive insurance policy. Since it comes with an own damage cover, it can help you significantly lower the amount you may have to pay straight out of your pocket for repairs.
Additionally, you also have to option to choose add-ons when buying comprehensive insurance. Some of the commonly available add-ons are zero depreciation cover, roadside assistance cover, key loss cover, return to invoice cover, and more.
Note that not all these add-ons may be available to you. You can check with your insurance provider to see whether the cover you seek can be availed of.
Is Third-party Bike Insurance Enough?
Buying third-party bike insurance
is mandatory for all bike owners. Thus, this type of insurance is a necessity when you own a bike. But do you need to go beyond this and get a comprehensive insurance policy?
If you seek exhaustive coverage, especially in comparison with third-party insurance, you should consider a comprehensive insurance policy. With this type of policy, you are allowed to choose a number of additional coverages based on your needs.
Furthermore, the own damage aspect of the comprehensive plan can protect you against having to face financial costs for any damage that is borne by your two-wheeler. Thus, it is generally advisable to get a comprehensive plan if you seek extensive coverage.
Comprehensive bike insurance renewal is also easier if you already have these policies from the start. If you don’t, your bike insurance renewal
may come with the additional step of bike inspection.
Whether to get comprehensive coverage or be satisfied with third-party coverage depends on your perceived needs as well as your budget. Ensure that you get to know the policy details before you make the decision.
*Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.