Comprehensive Bike Insurance vs Third Party Bike Insurance
- Author :
- TATA AIG Team
- Published on :
A two wheeler insurance policy is an agreement between an insurance company and a policyholder in which the insurance company agrees to pay for the losses or damages caused to the insured bike in return for timely premiums paid by the policyholder. The premium to be paid for your bike can be calculated here on our Tata AIG website, where you can choose from flexible premiums to get your two-wheeler insurance.
We offer three types of bike insurance plans, namely, basic third-party bike insurance, a standalone own damage cover, and an all-inclusive and comprehensive two-wheeler insurance policy. When it comes to choosing between third-party bike insurance and comprehensive two-wheeler insurance, each policy buyer may have their specific needs. That is why we would like to make it easier for you to decide on one after you have considered both options!
What is Third Party Bike Insurance?
If you are purchasing online insurance for your bike and decide to go for third-party two wheeler insurance, here is what you should know about it. This type of insurance policy covers bodily injuries caused to and even the death of a third-party person or damage to third-party vehicles or property by the insured bike. Third-party bike insurance premium rates are decided by the IRDAI annually and are based on the cubic capacity of the engine.
Third party bike insurance is mandatory as per the Motor Vehicles Act, without which the owner/driver can receive a fine of up ₹2000 and/or face imprisonment up to 3 months. Hence, it is a must for every two-wheeler to have a valid third-party insurance policy to ply on Indian roads. With Tata AIG, you can enjoy a seamless purchase and renewal process if you are looking for online insurance of your bike.
What is Comprehensive Insurance for Two-Wheeler?
Comprehensive insurance for two-wheelers offers extensive coverage as compared to third-party bike insurance. It includes third party bike insurance and protects your bike from third-party damages, and also includes an own damage cover so that your bike can also be safe. The comprehensive two-wheeler insurance covers the total loss or irreversible damage to the bike, damage from fires, and self-ignition in addition to damages caused by natural calamities like earthquakes, cyclones, etc., along with human causes such as acts of vandalism, terrorism, and more. Tata AIG offers online two wheeler insurance policies where you can choose a suitable plan based on the premiums of your preference.
Difference between Comprehensive Bike Insurance vs. Third-Party Bike Insurance
To understand the differences between the two types of bike insurance, let’s look at the table below and the various points of differentiation:
|Features||Comprehensive Bike Insurance||Third-Party Bike Insurance|
|Coverage||Comprehensive bike insurance covers your bike against third-party damages to property, and persons, as well as damage caused by natural calamities, human causes, fires, etc.||Third-party bike insurance protects your bike against damages caused to third-party vehicles and property and injuries caused to third-party persons by the insured bike.|
|Own damage cover||Includes an own damage cover for protecting your bike in the event of an accident.||Only protects the third-party persons, vehicles and persons against damage.|
|Legal requirement||It is not a legal requirement for driving on Indian roads.||It is a legal requirement on Indian roads.|
|Premium calculation||The insurance premiums are based on the IDV and other factors like the make and model of the bike, etc.||The insurance premiums are based on the cubic capacity of the engine and are revised by the IRDA each year.|
|Cost of Premiums||Since the coverage of this insurance policy is extensive, the premium cost is higher than third-party insurance or a standalone bike cover.||The premiums are affordable because the coverage is basic and only covers third-party damages.|
|Exclusions||Damages will not be covered under exclusions like driving under the influence of alcohol, driving without a license, negligent driving, using the bike outside India, etc.||Damages to the insured bike and the owner-driver cannot be covered under third-party bike insurance.|
Which Policy Should You opt for: Comprehensive or Third-Party?
To ensure that you find the perfect bike insurance policy for your two-wheeler as per your requirements, Tata AIG offers a range of bike insurance policies to choose from. Between a third-party bike insurance policy and a comprehensive bike insurance cover, the decision should be made based on how much coverage and protection you need for your bike.
A third-party bike insurance cover is ideal if you have a bike that you do not use often or have an old bike that you want to sell off or scrap soon. This type of cover is enough to protect a bike that is hardly exposed to the roads, and so, you can manage with the basic and mandatory third-party cover. The basic insurance coverage can save you from losses from third-party financial and legal liabilities in case of a mishap caused by your insured bike.
On the other hand, for a new bike that you use regularly, a comprehensive bike insurance policy is a better option. Since your bike is exposed daily to traffic and the threat of damages, only a simple third-party cover may be inadequate. Here, you can choose from the various comprehensive bike insurance policies that we have to offer. Since comprehensive two-wheeler insurance comprises third-party insurance as well as an own damage cover, you can receive complete protection for your two-wheeler.
With the help of our online bike insurance calculator, you can choose an Insured Declared Value (IDV) for your bike that will help you with sufficient coverage but also ensure that the premiums are still affordable. The IDV of your bike is an important component that helps you get the complete value of your bike in the event of its total loss. Therefore, do not settle for a very low IDV that will compromise your bike’s safety.
When getting a third-party or comprehensive bike insurance policy, always evaluate the coverage needed to protect your bike. By undertaking this step, you can avail of reasonable premiums and continue to pay them without having to suffer a financial setback on other expenses.
With Tata AIG’s online bike insurance plans, you can avail of discounts on the purchase of your insurance plan while enjoying a swift and hassle-free online process!
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.