Two-wheeler insurance essentially involves two types of insurances: Own Damage (OD) and Third-Party (TP). Both have different utility and are designed to protect from different risks. This is an all-inclusive guide on how to choose the right kind of policy based on requirements, budget, and legal mandates.
What is Third-Party Two-Wheeler Insurance?
According to the Motor Vehicles Act of 1988, two-wheeler owners are obligated to buy third-party insurance in India. This covers all damages or injuries to a third party that may have resulted from the accident involving your two-wheeler. These can be classified as follows:
- Injury or Death: This includes injuries or death of a third party in a two-wheeler accident.
- Property Damage: Covers damages to property belonging to a third party, within a liability of up to ₹7.5 lakh.
Key Features of Third Party Insurance:
- Legal Requirement: It is mandatory for every two-wheeler owner.
- Affordable Premiums: The insurance premium rates are controlled by the IRDAI.
- Only Third-Party Liability Is Covered: This type of insurance only covers third party liabilities and does not include protection against your two wheeler or personal injuries.
Benefits of Third-Party Insurance
- Meets the legal norms
- It is affordable, and the policy structure is uncomplicated
Drawbacks
- Two wheeler damages or injury to yourself is not covered
- It provides limited cover
What is Own Damage (OD) Insurance?
Own Damage insurance provides protection for damages to your two-wheeler due to unforeseen events. It is optional but highly recommended for comprehensive protection. Events covered under OD insurance include:
- Accidents: Damages caused by collisions or crashes.
- Natural Calamities: Loss due to floods, earthquakes, cyclones, etc.
- Man-Made Calamities: Coverage for theft, vandalism, or riots.
- Fire or Explosion: Protection against fire-related damages.
Key Features of Own Damage Insurance:
- Wide-ranging protection of your two-wheeler from a plethora of risks.
- Personalization: Adds on available to make coverage more customized with add-ons such as zero depreciation, engine protection, and roadside assistance.
- Stand-alone Policy: Option to take this policy when you already have third party insurance covering the vehicle.
Benefits of own damage Insurance:
- The coverage ensures your financial security if damages are incurred in your vehicle.
- Flexibility of adding riders to increase the level of coverage.
Disadvantages:
- More premium amount than that of third-party insurance.
- Does not meet the legal mandate of third-party liability.
- Learn Customizable Own Damage Insurance Plans
- Comparison of Own Damage and Third-Party Insurance
A comprehensive two-wheeler insurance plan combines mandatory third-party coverage and optional own damage insurance, offering legal compliance, financial security for your vehicle, and the flexibility of add-ons for enhanced benefits.
How to Choose the Right Insurance Plan
Selecting the right insurance plan depends on several factors:
- Budget: If budget is a constraint, third-party insurance is a good starting point. For full-fledged protection, invest in an OD or comprehensive policy.
- Vehicle Value: For high-value or new two-wheelers, OD insurance with add-ons is advisable.
- Usage: Frequent riders or those in accident-prone areas should consider comprehensive plans.
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Why Choose Coverfox for Two-Wheeler Insurance?
- Easy Comparisons: Compare multiple policies and premiums.
- Quick Purchase: Buy policies online in just a few clicks.
- Expert Support: Get guidance on choosing the right policy.
- Affordable Premiums: Access competitive rates and discounts.
Conclusion
Know the difference between Own Damage and Third-Party insurance while making an informed decision. Since third-party insurance ensures all legal compliances, one needs to ensure that there is financial security regarding his vehicle with Own Damage insurance. The best choice to have a comprehensive policy covering everything would be a full-fledged comprehensive policy. Evaluate your needs, check out policies, and take the best plan for two-wheelers. Check your options today at Coverfox Two-Wheeler Insurance.
