Explain about Comprehensive and 3rd Party Two-Wheeler Insurance

Getting caught by the traffic police is not an ideal reason for which one should buy a two-wheeler insurance policy. The purpose of vehicle insurance is to ensure your safety and reduce your financial liability in case of mishaps. Therefore, let’s understand the importance and which type of two-wheeler insurance policy serves the insurance purpose the best? Comprehensive or third party?

I won't be mistaken to say that in India, two-wheelers are probably the most chosen mode for the daily commute. Globally, two-wheelers are considered an ideal mode of transport in terms of mobility and ease. More the usage of a bike more will be its maintenance cost. This maintenance can turn out even more expensive if your vehicle is not insured under the right type of insurance policy. Two wheeler insurance plan, as the name suggests, is an insurance policy which offers financial cover to two wheelers such as bike, scooter, scooty, etc. in case of accidental damage, theft and third-party liability. Vehicle insurance in India is mandated by the law; hence, if someone is caught riding without an insurance cover, he/she might have to face legal prosecution. It is probably because many people buy insurance policy just for namesake, thus end up buying insufficient coverage for their vehicle.

When it comes to buying a two wheeler insurance policy, you are supposed to consider a few important pointers. One of these pointers is the type of insurance cover you are looking for your bike. People tend to confuse between comprehensive insurance and a 3rd party two wheeler insurance policy when looking for insurance for their bike. This article will help you to understand the basic difference between both forms of two wheeler insurance policy.

What is a Comprehensive Two-Wheeler Insurance Policy?

A comprehensive two-wheeler insurance policy provides comprehensive coverage. This means along with the third party insurance cover; it also provides insurance for own damages as well as cover from natural calamities, theft, etc. Own/personal damage is when your vehicle is damaged when you suffer injuries while using the insured two wheeler vehicle.

Coverage offered by a comprehensive insurance policy is not limited to 3rd party liabilities or own damage; such policies can also be enhanced with add-ons. The most popular add-ons are personal accident, zero depreciation, pillion rider and accessories cover.

What is the 3rd Party Two Wheeler Insurance Policy?

As the name suggests, 3rd party two wheeler insurance policy is insurance against 3rd party risks. These risks could include the death or injuries of the third-party person and damages to third party property.

Securing your two wheeler vehicle against third-party liabilities is mandatory in India. Not having a valid two wheeler insurance policy could lead to penalties or even imprisonment. A 3rd party two wheeler insurance policy also covers any legal liabilities faced by the owner in case of mishaps.

Difference Between Comprehensive and 3rd Party Two Wheeler Insurance

  • Coverage: The scope of 3rd party two wheeler insurance policy is limited to securing third party risks, whereas a comprehensive insurance policy provides dual benefits of 3rd party coverage and own damage plus damages created by others.

  • Law:Buying 3rd party two wheeler insurance policy is mandatory as per the Indian law. However, buying a comprehensive insurance policy is a personal choice depending upon your requirements.

  • Additional coverage: You cannot enhance coverage of your 3rd party insurance policy with the help of add-ons. However, a comprehensive two wheeler insurance policy can be enhanced with additional riders.

  • Cost: Vehicle insurance policies are priced according to the coverage offered. As 3rd party two wheeler insurance provides lower coverage as compared to the comprehensive insurance plan, the cost is comparatively low. Similarly, a comprehensive two wheeler insurance policy offers wide coverage; hence it is more expensive as compared to a third-party insurance policy.

A two wheeler insurance policy can be purchased online within a few minutes. You can buy both comprehensive as well as third-party insurance policy online. All you need to do is to decide which type of bike insurance policy is suitable for you.

Enter the details of your vehicle and proceed to select the desired coverage. As soon as you follow this step, you can complete your purchase by making an online payment. Once the payment is completed successfully, you will receive a soft copy of your policy document. You can download this document and take a print as required by the officials.

As explained above, a 3rd party two wheeler insurance policy offers less coverage as compared to a comprehensive two wheeler policy. With only minimum coverage, there could be a situation in which you are exposed to mishaps, and you have to end up paying money from your pocket. This can be avoided by purchasing a comprehensive insurance policy where you can also enhance the coverage by availing optional riders.

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