Third-Party Bike Insurance vs. Comprehensive Bike Insurance: Key Differences

What is Third-party Bike Insurance?

You must be aware that the Motor Vehicle Act of 1988 mandates a minimum of third-party insurance for all motor vehicles in India, including two-wheelers. So, having a third-party cover is mandatory. You can either opt for comprehensive bike insurance or purchase third-party bike insurance to comply with legal requirements. A third-party insurance policy for your bike only covers third-party liability. Damage to your bike is not covered under this policy. In this case, the option of an add-on is also unavailable.

Understanding differences

Now that you have a brief idea of comprehensive and third-party bike insurance, let's understand the differences between the two. The table below explains the differences:

Comprehensive Bike Insurance

• Provides complete coverage for own bike as well as third-party losses
• Having a comprehensive insurance policy for bikes is not legally mandatory
• This policy offers a wide range of coverage, like against theft, calamities, fire, total loss, etc.
• There are multiple add-ons available with comprehensive bike insurance
• Mechanical and electrical breakdown of the vehicle is not covered under this policy
• The premium can be slightly higher due to comprehensive coverage
• Generally opted for new bikes or frequent riders

Third-party Bike Insurance

• Only covers third-party damages/injuries. Own damages to the bike are not covered. A personal accident cover is offered to cover the rider against injuries
• Having a minimum of third-party liability insurance for bikes is mandatory as per law
• This policy only covers liability for injuries or damages caused to a third party person or property by the insured's bike.
• Personal accident cover may be the only add-on cover available
• No damage to the insured bike is covered by third-party liability insurance
• The premium is lower compared to comprehensive bike insurance
• Generally opted for when only legal obligations have to be fulfilled

Which is Better: Third-party or Comprehensive Bike Insurance?

After understanding the differences between comprehensive and third-party bike insurance, now comes the most important question: which one should you choose? Purchasing the right bike insurance is important as it ensures the right coverage you are looking for.

There are several factors to consider before purchasing a bike insurance policy. These are:

Personal Preference

The primary factor to consider is your personal preferences. After understanding the differences between types of bike insurance, you may be able to figure out your interest. Based on that, you can proceed to select the right bike insurance.

Driving Frequency

The frequency of driving your bike is also an essential factor to consider. If you drive your bike on a daily or regular basis, getting comprehensive coverage can be a better choice. However, if you occasionally ride your bike, fulfilling only legal obligations with third-party bike insurance can also be sufficient.

Age of Your Bike

The age of your bike also plays a significant role in determining the type of bike insurance. For bikes that are older than 5-10 years, coverage and IDV (Insured Declared Value) may decline. However, new can get robust coverage.

Driving History

Based on your driving history, you may be able to make an informed decision. For instance, some people may find it more comfortable to have comprehensive bike insurance when on the road than only third-party bike insurance. So, assess your past experiences to choose the right policy.

Policy Premium

Before making a choice, be sure to check out the premium options. A comprehensive bike insurance policy is highly likely to charge a higher premium compared to third-party liability insurance due to wider coverage. So, you can simply check the differences and compare policies at Jio Insurance Broking to understand the expenses.

Customisation Options

If you are willing to customise your bike insurance policy, comprehensive bike insurance can be the right choice. It offers various add-ons. However, such features are quite limited to third-party liability insurance.

Conclusion

A bike is usually a pride possession for many. So, it is quintessential to get your bike the right coverage. By understanding the differences between the two major bike insurance policies, comprehensive and third-party bike insurance, it becomes easier to make an informed decision. At Jio Insurance Broking, we enable you to compare various policies, allowing you to choose the most suitable one for your two-wheeler.

Assess your requirements and preferences and proceed with shortlisting top bike insurance policies at Jio Insurance Broking. Connect with us to get your bike the care it needs!