Insurance is today, mandatory for all vehicles on the road according to the Motor Vehicles Act, 1988. Ride without insurance and be ready to choke up a hefty amount in fines or penalties.
Since there is no escaping this financial product when you have a bike, let’s learn about it, shall we? If you think it’s going to be boring, well, stay with us. It is very likely that you will change your perception.
Now, broadly there are 2 types of bike insurance policies, an owner can go for-
- Comprehensive bike insurance
- Third Party bike insurance
Comprehensive Bike Insurance
Comprehensive bike insurance policy, as the name suggests, is the type of insurance which covers multiple aspects within itself including third party insurance. The coverage ensures that you get yourself protected from losses that are out of your control.
For instance, your bike is protected against accidents, fire, theft, vandalism, damage caused by natural disasters under this policy. It is inclusive of third party insurance which will learn about shortly.
Advantages of Comprehensive bike insurance policy:
- Wider Protection:
In the event of an untoward incident like a sudden accident, vandalism or a natural disaster, there’s a lot of stress that one goes through. The comprehensive policy saves you from the worry of finances arising from damage to your vehicle. Also, third party liabilities are taken care of.
Just like adding your choicest toppings to a pizza, you can customize your comprehensive insurance policy against specific risks your two-wheeler is prone to. This is done by opting for add-ons like zero depreciation cover, return to invoice, etc to your policy.
- All Inclusive:
Once you go for the add-ons, be assured that your bike is under maximum protection when unforeseen damages affect your bike as the comprehensive policy also includes third party cover. It covers you from third party liabilities in case of an accident when you are at fault.
Third Party Bike Insurance
This is the least that you can go for as a bike owner for your vehicle. It is mandatory for all bike owners to have third party bike insurance. Third party insurance will cover you against legal and financial liabilities caused by an accident.
For example, you run your bike into a store. The store owner may sue you or demand money for the losses. In both cases, this is covered by your policy. Note that damages caused to your bike is not covered as it only covers third party losses.
Advantages of Third Party Bike Insurance Policy:
- Legitimate: As a law abiding citizen, your bike will be insured under the minimum requirement prescribed by the Government. You will not face any fines from local traffic inspectors for insurance violation if you renew your policy every year.
- Protection: The insurance will cover you in case you get into an accident causing much damage to another party (here, third party) because of your fault. The insuring company will pay for the damage done to the third party or his/her property.
- Legal Help: You can call for a representation at any Inquest or Fatal Inquiry in respect of any death. The insurance company will represent the policy-holder for any legal proceedings, if required.
As a buyer, it is highly recommended that you know what are the aspects covered in the insurance as well as those ‘not’ covered. This table will help make your choice of insurance simpler as well!
Difference between Comprehensive vs Third-party Bike Insurance:
|Damages Covered||Comprehensive plan||Third-party plan|
|Damages to own bike due to accident||✅||❌|
|Damages to own bike due to natural calamity, fire, vandalism or theft||✅||❌|
|Injury/ death of third party||✅||✅|
|Third party property damage||✅||✅|
|Personal accident cover||✅||✅|
Choosing the right policy for your Bike:
As a new bike owner, it is a fairly simple choice to make. Going for the comprehensive policy gets you higher coverage and options to select the right add-ons. Keeping the city you reside in mind and other risk factors, you can customize the right policy under a comprehensive plan.
The premium amount for a comprehensive will exceed more than the third party policy but you will be risk-free. You may go for the third party insurance if your bike is old or a second hand bike which you are going to dump in a year or two anyway.