Are you someone who bought a third-party bike insurance plan because the law mandates you to own one, but are dissatisfied with the coverage it provides? Then, you’re not alone. Your views are valid as, indeed, this subtype offers no benefits to you or your two-wheeler whatsoever, even though you’re the one paying the yearly premiums.
This is why, in the long run, many policyholders decide to go the extra mile and purchase a policy that offers exhaustive coverage. Once you make the switch to a comprehensive bike insurance cover, you can rest assured that your personal pain points will be addressed extensively, too, with the same degree of care and scrutiny. However, before we take the plunge into the deep end of third-party vs. comprehensive two-wheeler insurance, let’s delve into the basics of the two, shall we?
Third-Party Bike Insurance
The Motor Vehicles Act of 1988 mandates that every two-wheeler owner must own a third-party bike insurance plan. In essence, such policies offer coverage to external parties other than the policyholder or the insurer, in case of an accident. Hence, the insurance provider reimburses the impacted third party for the damage caused to their property and assets. The insurer also disburses a payout to settle bodily injuries and, in extreme scenarios, untimely demise. The payable premium amounts are decided by the Insurance Regulatory and Development Authority of India (IRDAI) and remain constant across all insurers.
Comprehensive Bike Insurance
This bike insurance subtype is a viable blend of a third-party cover and an Own Damage (OD) plan. Hence, during times of natural or man-made disasters, coverage is provided to both the insured and the impacted third parties. While its premiums may be higher than a basic third-party insurance plan, a little goes a long way. The sum insured is significantly greater, with you getting to reap the coverage that you deserve, to shield yourself and your beloved bike against unforeseen mishaps.
Third-Party Cover vs. Comprehensive Insurance
Third-party insurance only covers the damage caused to external parties’ vehicles, property, and other valuable assets. On the other hand, comprehensive two-wheeler insurance offers coverage to both the third party and the policyholder, thereby settling losses incurred by all groups involved in the accident.
Owning a third-party plan shifts the responsibility of settling accidental liabilities to your respective insurer. When it comes to comprehensive policies, the scope of coverage is much wider, as your insurance provider will disburse a payout to address losses borne by you and the affected external party, too. And that’s not all! By opting for the ‘No Claim Bonus’ rider, you can enjoy slashed premiums every year, provided you don’t make any claims.
You cannot tailor your third-party bike insurance plan to best suit your needs. This, however, is possible when you choose a comprehensive two-wheeler policy. Insurers usually offer a wide range of add-on covers, which you can use to tweak your insurance policy and boost its coverage even more!
When it comes to third-party plans, their premiums fall on the lowest end of the spectrum. However, the lower rates come at the expense of compromised coverage. Hence, it is advisable to opt for its comprehensive counterpart, as these policies offer extensive protection in exchange for a slightly higher price.
Additional Riders To Go For
Insurance providers across the board offer a multitude of coverage-enhancing add-ons. Here’s a list of the ones that are most sought-after, especially by gear shifters who’re making the shift from basic, third-party policies:
Additional Personal Accident Coverage
Mandatory by law, this cover helps you, the owner of the insured vehicle, in shielding your hard-earned savings in the event of an unforeseen mishap. In case of disastrous accidents, this rider ensures that your family members’ finances remain secure, despite a severe diagnosis or an unfortunate demise.
If your beloved two-wheeler is stolen or deemed irreparable by your technician, then the return-to-invoice rider can come to your rescue. With this add-on in place, you are eligible to claim your bike’s invoice cost. After that is done, you’ll be compensated handsomely, with the disbursal being directly proportional to the Insured Declared Value (IDV) of your two-wheeler.
Roadside Assistance Coverage
If you’re an avid traveller who likes to visit secluded locations from time to time, then this cover might be for you. The add-on ensures that you get the proper assistance you deserve, even when your bike has broken down in the middle of nowhere, leaving you marooned indefinitely. Some services commonly provided by insurers include tyre changes, towing, and accommodation support, among others.
Zero Depreciation Cover
This cover allows you to evade all IDV-related deductions, thereby ensuring a higher disbursal amount every time you file your comprehensive bike insurance claim.
Bike consumables include quintessential two-wheeler parts such as bearings, nuts, bolts, engine oil, gearbox oil, etc. The expenditures associated with such components are not usually covered under comprehensive bike insurance
However, during times of distress, getting coverage for these consumables can make all the difference.
Emergency Medical Costs Add-On
Amidst surging costs of healthcare and skyrocketing inflation, the financial liabilities induced by unforeseen accidents may pile up to become unmanageable. During times like this, the emergency medical costs rider can come in handy, by boosting the plan’s coverage to include costs associated with urgent medical transportation and treatment of both the driver and the pillion rider.
Now after reading the benefits of comprehensive insurance, we can safely conclude that moving from third-party insurance to comprehensive insurance can be a dream ride if you are aware of the benefits of the latter.