back

Preferred Language

Preferred Language

What is a third-party two-wheeler insurance plan?

A third-party two-wheeler insurance policy extends financial coverage in case of any damages to the third-party property or an individual. Usually, the premium amount of third-party two-wheeler insurance is decided by IRDAI yearly and depends on the engine's cubic capacity. It is mandatory to buy this insurance plan for a two-wheeler owner, and not purchasing it can lead to a penalty and even imprisonment.

Therefore, it is a must for every two-wheeler owner to purchase online third-party two-wheeler insurance to ride on Indian roads. However, one must note that such policies do not extend financial cover for a policyholder's own vehicle damages or physical injuries.
 

What is a comprehensive two-wheeler insurance policy?

A comprehensive two-wheeler insurance policy extends substantial coverage to the policyholder, unlike third-party insurance plans. This policy provides extensive financial coverage, including the benefits of a third-party insurance plan if the policyholder suffers any personal injuries or property damages.

This particular variant of two-wheeler insurance covers the overall damage or loss to a policyholder's vehicle from fire, natural calamities, accidents, etc. You can also avail of additional covers such as engine protection, consumables and passenger, zero depreciation, and roadside assistance.

Additionally, here individuals have the liberty to customise the policy to meet their requirements.

Difference between comprehensive vs third-party two-wheeler insurance

To comprehend the difference between third-party two-wheeler insurance and comprehensive two-wheeler insurance, take a look at the table below and other differentiation points:

Features Third-party two-wheeler insurance Comprehensive bike insurance
Coverage A third-party two-wheeler insurance plan covers financial expenses caused due to damages to third party properties or vehicles, or persons by the insured bike. In this type of plan, the policyholder's bike is financially covered against damages apart from third party coverage.
Add-on cover No add-on coverage is available. Proposers can get various add-on facilities like zero depreciation cover, roadside assistance, and more with this policy.
Legal requirement Third-party insurance is a legal requirement to ply on Indian roads. It is not a mandatory requirement.
Calculation of premium The premium amount depends on the cubic capacity of the engine, and IRDA revises it annually. The premium of such insurance policies depends on the IDV and other factors like the make and model of the vehicle, etc.
Premium cost Under third-party two-wheeler insurance, damages caused to the policyholder and their vehicle are not covered. Under this policy, damages caused under the influence of alcohol, negligent driving, driving without a license etc., will not be covered.
 

Now that intending proposers have a clear idea about what comprehensive two-wheeler insurance and third-party two-wheeler insurance policies are; they can purchase one based on their requirements.

Choose comprehensive or third-party insurance

It is advised that customers should make a knowledgeable choice between third-party insurance and comprehensive two-wheeler insurance depending on the coverage and protection they need. Additionally, buying third-party two-wheeler insurance cover online is convenient and saves time.

A comprehensive two-wheeler insurance plan is a good option for a new vehicle and is used regularly. Therefore, one can choose a comprehensive motor insurance plan that offers substantial coverage and additional benefits at an affordable premium on both their two and four-wheelers.

Did you know, a good CIBIL score can help you get a better deal on loans and credit cards?