Third Party to Comprehensive Bike Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 20/08/2022

In India, the Motor Vehicles Act, 1988, has made it compulsory for all bikes to have a Third-Party Two Wheeler Insurance policy. This is a basic policy requirement that ensures that if any third-party person or property gets damaged in an accident involving a bike, the affected party is fairly compensated by the insurance company.

While third-party insurance for two wheelers takes care of third-party liabilities, it does not offer coverage for damage to the insured bike. Hence, if the bike meets with an accident, the policyholder has to manage the costs of repair without any reimbursement from the insurer. This is where a Comprehensive Two Wheeler insurance or Standalone Own-Damage insurance comes in handy.

Many bike owners purchase a third-party policy to comply with the legal requirements. However, over time, as they realise the benefits of having insurance for two wheelers, they think about boosting the coverage to include their bike too. If you identify with this situation, then in this article, you will find tips to help switch from Third-Party to Comprehensive Two Wheeler Insurance.

Steps to Switch from Third-party to Comprehensive Bike Insurance

With online insurance companies like Tata AIG, it is easy to switch from third-party to comprehensive bike insurance. We at Tata AIG offer a seamless process for buying an online two wheeler insurance policy that allows you to complete the purchase within no time. On our website, you can also find a bike insurance calculator that helps you find the premium amount that you would have to pay for the policy you need including deductibles and add-on covers. Hence, you can customise the Comprehensive Two Wheeler Insurance plan as per your needs. Here are the steps to help you switch from a third-party to a Comprehensive Bike Insurance policy.

  1. Visit our official website (www.tataaig.com)
  2. Click on ‘Bike Insurance’ under the ‘All Products’ tab and enter the registration number of your bike
  3. Enter details about your two-wheeler and yourself along with the previous policy details
  4. Also, select the policy coverage, Insured Declared Value (IDV), and add-on covers
  5. Provide details about the No Claim Bonus (if any)
  6. Receive a quote instantly and make the payment of the premium to complete the purchase of your Online Two Wheeler Insurance policy.

Important Points to Remember

If you have been using third-party insurance for two wheelers and have decided to migrate to a Comprehensive Two Wheeler Insurance plan, then here are some essential things that you must keep in mind:

Premium cost

When you opt for a Third Party Insurance policy, the insurer offers coverage for third-party liabilities only. These include any damage to the property of a third party or injury to a third person. However, when you move to a Comprehensive Two Wheeler Insurance policy, you get coverage for damages to your bike in addition to third-party liabilities. Hence, the premium of a Comprehensive Policy is higher than a Third-Party liability-only policy. The premium calculation depends on a range of factors like the make and model of the bike, its age, your location, IDV of the bike, and many other factors. Use the online bike insurance calculator to get an estimate on the premium before making the purchase.

Coverage

When you migrate to a Comprehensive Bike Insurance policy, you get coverage for third-party liabilities and damages to your bike too. Make sure that you go through the terms and conditions of the policy and the list of inclusions and exclusions. Understand the scope and extent of the coverage before signing the dotted line.

Insured Declared Value (IDV)

The market value of the bike is its IDV. Insurance companies determine the price of a Comprehensive Two Wheeler Insurance policy based on its IDV. It is also the maximum sum insured that the insurer pays if the bike is damaged beyond repair or stolen. While most insurance companies allow you to tweak the IDV to reduce the premium, it also reduces the claim amount you could receive.

Deductibles

A deductible is an amount that the policyholder pays out of pocket during a claim settlement. There are two types of deductibles: Compulsory Deductible – This is a nominal amount that the policyholder has to mandatorily pay during a claim settlement. It is generally based on the engine capacity of the bike.

Voluntary Deductible – Voluntary deductible is the amount you agree to voluntarily bear during a claim settlement. Many bike owners opt for a higher voluntary deductible to reduce the premium of the policy. However, this also means a lower settlement amount. Hence, make sure that you choose the voluntary deductible carefully.

No Claim Bonus

When you buy a comprehensive two wheeler insurance policy, you can file a claim for damages to your bike due to an accident, collision, or disaster. However, if you avoid filing claims for minor damages, then you can avail of a No Claim Bonus discount at the time of renewing your policy. This is a progressive discount that increases with every subsequent claim-less policy term.

Should You Shift from a Third-party to a Comprehensive Bike Insurance Policy?

A Comprehensive Two Wheeler Insurance policy covers third-party liabilities and damages to your bike due to an accident involving your bike. While the premium is higher than a third-party liability-only policy, the coverage is extensive and includes damages due to natural and man-made disasters, fire, and even theft. Hence, if you are looking for better coverage for your bike, then opting for a Comprehensive Insurance for Two Wheeler Policy can be a wise decision.

Conclusion

If your bike gets into a collision with another vehicle and causes a dent, then the third-party two wheeler insurance covers the cost of repair for the third party, but does not cover damages to your bike. A comprehensive bike insurance policy, on the other hand, pays for the damages caused to your vehicle and also takes care of any third-party liability.

Many bike owners have started realising the benefits of a Comprehensive Bike Insurance plan and are shifting from 3rd Party to Comprehensive plans. With Tata AIG, the process of switching is simple and hassle-free. Make sure that you understand the inclusions and exclusions of a Comprehensive Policy and choose the right add-ons before making the purchase.

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