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Comprehensive vs. Third Party Bike Insurance

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Published on July 26, 2019. EST READ TIME: 5 MIN

Owning your two-wheeler is a matter of pride and you would want to ensure no harm occurs to it. One way to get this security is by choosing the right insurance policy.

Two-wheeler insurance may be either a third party or a comprehensive coverage. The former type of coverage is mandatory as per the law. However, there are several benefits of availing of comprehensive coverage.

It is common that you may be confused between comprehensive bike insurance vs. third party bike insurance coverage. The following table shows a comparison between these two types of policies offered by us at HDFC ERGO and may help you make the right decision.

 

	Comprehensive	Third party
Inclusions	Financial loss due to Theft Accident disaster Coverage for Injury or death of the third party Damage to third party property Personal accident cover	Third party liabilities arising due to Injuries Death Property damage Total or partial disability Personal accident cover
Exclusions	Contractual liabilities Regular wear and tear Mechanical and electrical breakdown Damage or loss due to war, mutiny, nuclear risks Depreciation	Contractual liabilities Damage or liability arising outside geographic area Uncovered use of the bike Liabilities arising from nuclear weapons
Benefits	Long-term protection eliminating annual renewal hassles Save money by avoiding annual premium increases No claim bonus discount irrespective of claims on premium when you purchase long-term insurance	Get cover for three years Paperless transaction from annual renewal against third party rates revisions
Costs	Premium amount depends on Insured declared value Engine capacity Age of the bike of registration No claim bonus	Premium is payable as per the guidelines determined by the Insurance and Regulatory Development Authority (IRDA)

 

Choosing between third party and comprehensive cover

Now that you understand the difference between comprehensive and third party two-wheeler insurance, you may want to know which one to choose when. While making this choice, it is important for you to remember that a comprehensive cover includes the benefits and claims coverage available under the third party two-wheeler insurance policy. Therefore, opting for the former is beneficial. Here are two points that may help you make the accurate choice.

New and less used bike

If your bike is not very old and you do not use it very frequently, opting for thirdparty coverage may be sufficient. In case there is an accident that causes damage to your bike, you may pay for the repairs through your personal resources.

Avoid using your personal sources

You will have to use your personal sources to pay for repairs or suffer the loss in case of theft. However, if you want to avoid dipping into your savings or personal sources to fund such situations, opting for a comprehensive coverage is recommended.

Third party two-wheeler insurance is cheaper than comprehensive coverage. However, the former does not offer complete protection. Third party coverage is sufficient to meet mandatory requirements but have you considered the financial implications in case of severe damages? As the number of road accidents rises in India, a comprehensive two-wheeler insurance coverage is recommended to avail of complete protection.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle

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