Own Damage v/s Third Party Cover Under Bike Insurance

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Own Damage v/s Third Party Cover Under Bike Insurance

With the increasing carelessness while driving or riding on the roads of the country, the number of road accidents is also at an all-time high. For the same reason, the population is also beginning to understand the need to invest in bike insurance or car insurance policies to secure their vehicles.

Whether you are a bike owner or a car owner, knowing the different types of insurance policies available to safeguard your vehicle from unforeseen circumstances is crucial. When it comes to insurance for a bike, three different types of insurance plans are available.

The list includes comprehensive, own-damage (OD), and third-party (TP) bike insurance policies. However, there is a lot of confusion regarding own damage vs third-party bike insurance differences and how they benefit a bike owner.

This blog will discuss the difference between OD and TP insurance categories, how they benefit the insured, how to buy bike insurance online, etc.

What is Own Damage Bike Insurance?

Own damage bike insurance is an insurance category that covers your bike for any damage, theft, accident, etc., to share the financial burden of repair and replacement. It is not mandatory to purchase an own-damage bike insurance.

However, it provides extensive financial assistance to cover any damage or repair needs of the insured bike. Whether someone stole your bike or a natural calamity like a flood or earthquake damaged your bike badly, own-damage insurance will take care.

At the time of purchase or renewal of own damage bike insurance, you can also customise the policy by adding required riders with the base policy plan. This will increase the scope of coverage significantly.

Key Points to Remember

Covers against any natural or man-made disasters that cause damage or loss to the insured bike.

All damage or loss due to vandalism, political riots, etc, is also covered by an insurer under this policy.

Own-damage is a bike insurance plan that permits customisation flexibility to add required add-ons for increased coverage and protection of the bike.

The depreciated value of the insured's bike is taken into consideration during claim requests.

No personal accident cover is available under this bike insurance plan.

The list of exclusions under this policy includes general wear and tear cover, third-party liabilities, repair requirements for tubes or tyres, damage due to drinking and driving, etc.

What is Third-Party Bike Insurance?

Third-party bike insurance is an insurance category that protects you from any damage or loss incurred by a third party because of your bike. All third-party liabilities are covered, and ample financial assistance is provided to the insured in case there is damage to the third-party vehicle, property, or even serious injuries or death.

According to the Motor Vehicles Act 1988, third-party insurance for a bike is mandatory for every bike owner. Without third-party insurance, no vehicle can be taken on the road. Riding a bike without valid third-party insurance can attract heavy financial penalties.

If you are wondering, “Is third-party insurance enough for a bike?” The answer is yes, it is beneficial to cover for damages caused by your bike. However, it does not cover any repair and replacement of the insured bike, making it important to invest in an insurance plan that protects your bike.

Key Points to Remember

Third-party insurance is mandatory and can attract legal complications if not available with the rider.

Extends cover for any damage or loss caused to a third party by your bike.

The premium charged for this category of bike insurance is mostly more affordable than any other bike insurance category.

The availability of personal accident cover is not compulsory and is mostly not available with these plans. However, Tata AIG offers financial support in case the insured faces disability or death.

The depreciated value of the insured bike is not taken into consideration during the claim process under this bike insurance category.

The list of exclusions under this policy includes general wear and tear cover of the insured bike, third-party liabilities due to careless riding or riding after the consumption of alcohol or other substances, etc.

Difference Between Own Damage and Third-Party Bike Insurance

The decision between OD and TP in insurance plans for bikes is solely dependent on the policyholder and their requirements. OD covers for damage and loss incurred by your bike, while TP covers for damage and loss incurred by a third party due to your bike.

Let us discuss the key differences between OD and TP below.

Point of Consideration  Own-Damage Third-Party 
Scope of Coverage This policy category only extends cover for damage and loss incurred by the insured vehicle. Any third-party damage caused is not covered. This policy category is mandatory as per law and extends cover for any loss, damage or legal requirements incurred by a third party because of the insured bike.
Add-ons It is a kind of comprehensive bike insurance plan and offers the flexibility of customisations based on needs with multiple add-on rider options.  This policy cannot be customised and is limited to only third-party incurred damage and loss compensation. No add-ons are available.
Cover for Personal Accidents Personal accident cover is not available with any of the OD plans. However, some insurers like Tata AIG offer it. Under this policy type, personal accident cover is available for a value of ₹15 lakhs
Premiums Given the customisation flexibility and the wide range of cover for damage and loss incurred by the insured, the premium charged is a little higher. This insurance category is the most affordable bike insurance plan.
Depreciation The depreciated value of the insured bike is taken into consideration at the time of claims and premium calculation. The depreciated value of the insured bike is not considered for calculating premiums or claim settlements. 

How to Purchase Bike Insurance Online with Tata AIG

Now that you are well aware of the key differences between the two common bike insurance plans available, let us find out how to purchase bike insurance online with us in a few quick steps.

Visit our official website.

Locate and click on the section indicating “Bike”

Enter your bike registration number and click on the “Get Price” option to begin.

Once on the new page, enter all the necessary information about the bike and fill up the personal details as requested.

After that, choose the policy you wish to purchase and add any rider options you want to opt for if applicable.

Upon completion, you will be promoted with a calculated premium for the chosen insurance policy. If you are okay with the offered premium, continue to make the payment.

Once the payment is completed, you will receive an email with your bike insurance document.


There is no fixed right or wrong choice when it comes to bike insurance. Based on individual capacity, needs, and budget, the two-wheeler insurance policy can be customised and purchased.

The top priority is to safeguard your bike from the excessive financial burden of covering for loss or damage. Certain insurance providers also offer bundled insurance plans for a bike that combines OD and TP for a longer coverage period with combined benefits.

So, if you are wondering what 1-year OD and 3 years TP means, it is a bundled bike insurance policy wherein you benefit from 1 year own-damage cover and 3 years of third-party cover with one purchase.

These bundle plans are also called long-term two-wheeler insurance plans, as they cover your bike for a longer period without yearly renewals. When you buy from Tata AIG, you can also compare different bike insurance plans with ease and choose the one that fits your needs best.

Safeguard your biking twists and turns with us today!

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Is it necessary to know the bike insurance OD and TP meaning?

Is it necessary to know the bike insurance OD and TP meaning?


OD stands for own damage bike insurance, and TP stands for third-party bike insurance policy. Knowing the meaning and differences between OD and TP will help you make an informed decision regarding which bike insurance to purchase.

Will third-party bike insurance also cover damages incurred by my bike due to negligence from a third party?


Third-party bike insurance policies only cover damage and loss incurred by a third party due to your insured bike. For extended cover for your bike, you need to purchase a comprehensive or own damage policy.

How is the own damage policy different from a comprehensive policy?


Own damage only covers loss and damage incurred by your insured bike. A comprehensive policy combines the benefit of own damage and third-party liabilities for better coverage and financial protection. While you can buy a third-party/comprehensive bike insurance plan individually, buying only an own damage policy is not enough and you will still have to bike a third-party policy along with it.