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kalpesh shirke
kalpesh shirke

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Difference Between Comprehensive and Third-Party Liability Two-Wheeler Insurance

The main goal of a two wheeler insurance policy is to cover costs associated with losses or damages to two-wheelers either by the policyholder or by a third party. In light of this, two wheeler insurance come in three different variants that cover third party costs, standalone own-damage costs, and comprehensive costs.

As per the Motors Vehicle Act, having a third-party insurance coverage is mandatory in India. Nevertheless, buying a separate own-damage insurance plan is advisable to lessen the financial strain associated with the damage or loss incurred by your two-wheeler following an accident or mishap. Comprehensive insurance combines both of these coverages into a single plan.

In order to purchase these plans and utilise their benefits to the fullest, you must initially comprehend the meanings and variations of these plans.

What does a third-party two-wheeler plan signify?

If you’re thinking about getting a third party bike insurance plan, here is all the information you should be aware of. This kind of insurance covers bodily injury and even death to third parties as well as damage to their vehicles or property caused by the insured bike. The IRDAI determines the annual premium rates for third-party two-wheeler insurance depending on the engine's cubic capacity.

*What does a comprehensive two-wheeler insurance signify? *

While comparing a comprehensive two-wheeler insurance plan to a third-party bike insurance plan, comprehensive plan provides more extensive coverage. It comprises third-party bike insurance, which safeguards against third-party damage, as well as an own damage cover, which ensures the safety of your bike.

*Difference between comprehensive and third-party two wheeler insurance plan *

Listed below are some of the major differences between a comprehensive plan and a third party plan

Legality: According to the Indian Motor Tariff, all two-wheelers owners must necessarily possess a third party insurance plan. Whereas there is no such mandate for a comprehensive plan. A fine of Rs. 2,000 and/or a sentence of up to 3 months in jail are the possible legal consequences for operating a two-wheeler without third-party insurance in India; however, no such penalty is applicable for the absence of a comprehensive insurance plan.

Scope of coverage: Only protecting you against the losses or damages incurred to the third party, third-party insurance provides you with a limited scope of coverage. Whereas, comprehensive insurance offers significant coverage against theft, loss, and damage to your two-wheeler from accidents, fires, terrorist attacks, natural disasters, etc. Additionally, it gives you a financial safety net in case you are held responsible for the injuries, fatalities, or property damage to a third party.

Add-on covers: The third-party insurance policy only gives a personal accident cover as supplementary coverage in exchange for a premium. However, if you choose a comprehensive insurance plan, you may choose from a variety of add-on covers, including zero-depreciation, return to invoice, roadside assistance, consumable, and NCB protection.

Premium: Although the premium rate of a comprehensive insurance policy is more expensive than the third-party insurance policy due to the extensive coverage it extends you with, the premium for a third-party insurance is less expensive as it only provides a limited coverage.

As mandated by law, without a valid third-party bike insurance policy, you risk being fined or perhaps sentenced to imprisonment. But a third-party policy is only a basic coverage that merely covers losses and damages suffered by a third party. We recommend you choose a comprehensive two wheeler insurance for additional protection as it covers both own and third-party damages. Although it is a bit costly than a standard third-party plan, it surely bestows you with exceptional benefits throughout the course of the policy.

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