How to Know If Insurance Is a Comprehensive or Third-Party Bike Insurance Plan?

Understanding Third-Party Bike Insurance Coverage: A Mandatory Policy

In India, for all bike owners, as per the Motor Vehicle Act 1988, it is compulsory to have at least a third-party bike insurance policy. It covers any third-party liability you might face during a bike accident.

In case of an accident or crash, the third-party bike insurance policy comes into the picture. Under this, your insurer covers the damages caused to the third-party properties. Also, if any third party is physically hurt, wounded, or majorly injured along with property damage or their vehicle gets damaged after due to your bike, these liabilities will be covered under it.

Therefore, if you have third-party insurance, you will be free from any financial strain that can cause any damage to a third party in case of an accident.

Benefits of Buying Third-party Insurance Policy For Bike

It only covers third-party liabilities, that is why it is the most affordable type of insurance cover. If you wish to get coverage for any third-party liability only and since it is mandatory, you have to purchase a third-party bike insurance policy after comparing different bike insurance provided by different companies.

As per Motor Vehicle Act 1988, it gives you the authority to drive your bike legally. Also, it is mandated by law, and not having this plan can land you in legal troubles along with hefty traffic challans.

What is Excluded From Third-party Insurance Policy For Bike?

One of the major drawbacks of third-party bike insurance is it does not cover own damages (OD). Other than this, any damages caused while driving under the influence of intoxicating substances like alcohol or drugs will not be covered under third-party bike insurance.

It will also not entertain those bike drivers who violate the traffic rules and do not carry their valid driving license.

How to Know If Your Insurance is Third-party Bike Policy?

• Check your policy document: The policy document will clearly state "Third-party Insurance" or "Liability Only" coverage.
• Low premium amount: Third-party plans have significantly lower premiums than comprehensive plans.
• Limited coverage: If your policy only mentions coverage for third-party liabilities, it's a third-party plan.

Understanding Comprehensive Bike Insurance Coverage: All-Around Protection

A comprehensive bike insurance plan is overall protection offered by the insurer to their policyholders. As a bike owner, you must have this protection cover, even though it is not mandatory.

It covers all the damages that you might suffer in an accident. You get assurance for your bike against the damages caused due to theft, fire explosion, natural or made-disasters, and total loss. Even it gives you protection for third-party liabilities that you might face in the event of an accident.

Benefits of Buying Comprehensive Bike Insurance Policy

One of the major benefits of having a comprehensive insurance policy is that it covers Own Damages (OD) along with third-party liability cover. This gives you complete protection in any unfortunate event like a collision, fire, or road accident.

Although the premium for this plan is higher, considering the benefits and the policy coverage, it is a cost-effective deal. Therefore, it offers you great savings in the long run. You also get compensation for the loss in case of theft.

What is Excluded From a Comprehensive Bike Insurance Policy?

Performing a careful bike insurance check will help you understand the exclusions better. Under your comprehensive insurance plan, certain instances are not covered like- any consequential damage after the accident, unless you don't have any add-on cover for it. Also, damages caused to the bike due to electrical or mechanical breakdown are excluded from a bike insurance policy. However, there are add-ons available that you can purchase by spending an extra amount.

If you are involved in an accident where you don't have a valid driving license or you were driving under the influence of alcohol or drugs you won't be able to avail any claim.

How to Know If Your Insurance is Comprehensive Bike Policy?

• Check your policy document: The policy document will explicitly mention "Comprehensive Insurance" coverage.
• Higher premium amount: Comprehensive plans have higher premiums due to their wider coverage.
• Extensive coverage: If your policy includes coverage for own damage, theft, natural disasters, etc., it is a comprehensive coverage.

Third-party Bike Insurance Vs. Comprehensive Bike Insurance: A Difference Table

If you have confusion between both the plans, we have discussed a detailed chart showing how third-party bike insurance is different from a comprehensive plan:

Final Thoughts!

By reading the above comparative chart, now you can easily differentiate between third-party bike insurance and comprehensive bike insurance. Moreover, we suggest you choose a comprehensive insurance plan over a third-party plan because of higher coverage, more benefits, and better financial security.