Bike insurance policies safeguard the rider from significant damage and ensure financial security for the policyholder’s family in the event of their death. They provide protection for the rider from risks resulting from third-party injuries.
This article will explore the two different types of two-wheeler insurance policies, including third-party and comprehensive ones, to safeguard finances against major road damage.
How to Decide Between Third-Party and Comprehensive Bike Insurance?
If you are confused about what factors to consider before purchasing a third-party or comprehensive bike insurance, here is a comprehensive overview of both:
Third-Party Bike Insurance
A third-party bike insurance policy covers your legal obligations towards any vehicle, third person, or property that is directly affected by an accident in which your two-wheeler is involved. The mandate given out by the Motor Vehicles Act, 1988, clearly states that every bike on Indian roads must have this level of cover.
IRDAI has set a fixed premium amount for third-party two-wheeler policies, which every insurer with the same engine capacity must follow.
Inclusions
- Damage to a third-party property or vehicle
- Legal expenses resulting from third-party claims
- Death or bodily injury of a third person
- Savings from traffic penalties and fines
- Legal compliance
- Personal accident coverage for the rider (if not specified separately)
Exclusions
- Fire, natural calamity damage, or theft
- Customisable bike insurance policy with covers or add-ons
- Personalised IDV
- Compensation for the theft of your bike
Opt for a third-party bike insurance policy if:
- The current market value is not high.
- There is a need for the minimum legal coverage available at the lowest cost.
- The bike is old or of low value (generally 8-10 years or beyond).
- No investment would be taken into consideration for major repairs if damaged.
Comprehensive Bike Insurance
Comprehensive bike insurance offers a combination of own damage (OD) and third-party liability coverage for your vehicle. It means this policy covers everything, including damage to your own bike. However, the OD premium aspect depends on the bike’s model, owner’s claim history, Insured Declared Value (IDV), and city of registration.
Here, the Motor Accident Claims Tribunal supervises the claim procedure.
Inclusions
- Explosion and fire
- Theft and vandalism
- Transit damage (at the time of transport by rail, inland waterway, or road)
- Collisions and accidents
- Natural calamities (earthquakes, storms, floods)
- Strikes and riots
- No Claim Bonus (NCB) savings and possible discounts
- Cashless repairs at network garages
Exclusions
- Accident caused by the driver because of an invalid licence or drunk driving.
- Any claims made out of any contractual liability.
- Damage resulting from war, mutiny, or additional risks.
- Regular maintenance-related issues and mechanical or electrical breakdown.
- Accident taking place outside the geographical region as per what is stated in the insurance policy.
- Tubes and tyres, unless damaged along with the bike in the same accident.
Furthermore, with a comprehensive bike insurance policy, you can also add optional covers, like:
- Engine Protection: Any kind of wear and tear from oil leakage or water ingress.
- Pillion Rider Cover: Personal accident protection coverage for the pillion passenger.
- Return to Invoice: Full purchase amount during total loss.
- Roadside Assistance: Emergency help and towing.
- Zero Depreciation: Complete claim settlement, excluding depreciation deductions.
Go for a comprehensive bike insurance policy if:
- The bike you possess is high-value or new.
- The bike is properly financed (lenders usually require comprehensive cover).
- There is a possibility of you riding the bike in high-risk conditions (e.g., flood-prone or heavy traffic regions).
- There is a need for access to add-ons, such as engine protection and zero depreciation.
With Bajaj General Insurance, one of the leading motor insurance companies, you can choose the most appropriate two-wheeler insurance policy to fit your preferences and requirements, helping you manage your finances securely.
Final Words
Selecting a plan between third-party bike insurance must be based on your financial comfort, riding conditions, and bike’s value and age. The decision must also be based on whether you have to pay a higher premium versus out-of-pocket repair costs for added protection.
