“Which insurance is best for a bike: comprehensive or third party?” This is a common question for bike owners.
Deciding on bike insurance, third-party or comprehensive, is all about finding your perfect road buddy. Knowing the difference between two-wheeler insurance plans can help you choose the best policy. The decision often depends on the bike rider’s personal choice and risk-bearing capacity.
Here's a quick look at two types of insurance to help settle the debate between comprehensive or third-party bike insurance.
Difference between Comprehensive and Third-Party Bike Insurance
The significant comprehensive and third-party bike insurance difference revolves around coverage benefits. Riders should carefully evaluate third-party vs. comprehensive bike insurance to determine which is best for them. Let's break down which two wheeler insurance is the best for you.
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Comprehensive bike insurance
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Third-party bike insurance
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| Meaning |
It combines third-party liability insurance and own damage cover and provides complete coverage against every risk. |
It takes care of the damages caused to third-party property or life by the insured vehicle. |
| Legal status |
Optional |
Mandatory in India as per the Motor Vehicles Act, 1988. |
| Coverage |
Offers extensive coverage protecting insured bikes against theft, loss, physical damage and damage/loss to another individual vehicle or property. |
Offers limited coverage only against damage/loss towards the third party. |
| Premium rate |
Higher |
Less expensive as IRDAI fixes the premium rates |
| Add-ons |
Add-ons like Zero-Depreciation Cover, Return to Invoice Cover, Roadside Assistance, Consumable Cover and more are available |
Provides only Personal Accident Cover |
This comparison highlights the differences between comprehensive vs. third-party bike insurance. When deciding between the two, consider your budget and the level of coverage needed for your bike.
Evaluate your bike usage when comparing the benefits of 3rd party bike insurance vs comprehensive insurance plans. Third-party insurance is suitable if you do not use your break frequently or if it's older.
The process of claim settlement also varies between bike insurance, third party or comprehensive. With comprehensive insurance, the insurer directly settles claims based on the policy type. Bike owners can take their vehicle to the insurer's network garage for repairs, with the insurer paying the garage directly. In contrast, claims under third-party insurance plans are handled by the Motor Accident Claims Tribunal.
Overall, when considering comprehensive versus third-party insurance for two-wheelers, the broader coverage provided by comprehensive insurance offers greater peace of mind and a more extensive safety net for riders.
Conclusion
When comparing bike insurance, comprehensive vs third-party, it's important to carefully review what each plan covers and what it does not. The third-party vs comprehensive bike insurance isn't just about costs and coverage—it's about riding with confidence while adhering to traffic rules.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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