Choosing the best kind of bike insurance is important given the risks associated with riding two-wheelers in and around Indian cities. There are two types of bike insurance policies available in India — third-party insurance and comprehensive insurance. The third-party two-wheeler policy provides basic coverage and is mandatory while driving on the Indian streets. On the other hand, the comprehensive bike policy offers wider coverage.
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The table below will differentiate the two policies and help you in selecting the right policy for your bike:
| PARAMETER | THIRD-PARTY COVER | COMPREHENSIVE COVER |
|---|---|---|
| Requirement | A third-party motor insurance cover is mandated by law which means one must have their vehicle insured before driving on Indian roads. It’s important to remember that non-adherence can attract heavy fines | Comprehensive bike policy is optional. |
| Coverage | It is a basic insurance cover which protects the policyholder from any liabilities resulting from any accidental injury, death or physical damage to the third party (person, property or vehicle) caused by the insured vehicle. | A comprehensive motor insurance essentially consists of a third party (TP) and an own damage (OD) cover. It covers third party as well as damage caused to the policyholder’s own property. Any damage caused due to natural disasters such as cyclones, floods, earthquakes etc., and events such as fire and riots are covered under a comprehensive motor insurance plan. |
| Price | The price for third-party insurance is fixed by the regulator. | The price for comprehensive cover, however, is variable as it depends on the rates and discounts offered by different insurers. |
| Add-ons | These are not applicable | Comprehensive covers also provide provision for add-ons such as zero depreciation, engine protect etc. |
| Add-ons | Not applicable | Comprehensive covers also provides for add-ons such as zero depreciation, engine protect etc. which are not allowed under third-party liability policy. |
(Source: Information made available by Kunal Jha, Head of Motor Product and actuarial at Go Digit General Insurance)
Some of the add-ons are explained below:
Zero depreciation cover
In most cases, it is the car owner who pays for the depreciation and replacement of new spare parts after an accident. However, if one wants this expenditure to be covered by the insurance company, they can buy the nil or zero depreciation add-on to avail the benefits of this cover along with the existing insurance plan. The nil or zero depreciation plan covers repair and replacement costs of rubber, plastic, and fibre components of the vehicle, Kunal Jha told CNBC-TV18.com.
Consumables cover
At the time of claim, consumables like oil, nuts, bolts etc, may not be covered under insurance. With this add on, one can avoid paying for consumables. "This add on covers expenses towards consumables which are unfit for further use, arising out of damage due to an accident," Jha said.
Engine and gear-box protection cover
In a standard car insurance policy, only damages that occur during the accident are covered. However, the engine could have consequential damages too post an accident.
"This add-on protects policyholders financially against damages caused due to that. This includes damages caused due to leakage of lubricating oil or times when water enters the engine because of natural calamities," Jha told CNBC-TV18.com.
Which is a recommended policy?
According to Jha, it is recommended to buy a comprehensive motor insurance cover to ensure complete protection of vehicle. "As mentioned above, such a plan covers damages caused due to multiple reasons including natural calamities, fire, riots, theft etc, in addition to a third-party cover," he said.
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What is the average pricing for a comprehensive and third-party bike insurance?
Here are the typical ticket size:
| New Vehicle | |
| Plan | 1-year OD + 5-year TP |
| Comprehensive plan premium: | Rs 4,812 |
| Third-party premium: | Rs 3,791 |
(Source: Go Digit General Insurance)
(Edited by : Shoma Bhattacharjee)
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