The importance of having Two-wheeler insurance is the same as to wearing your helmet when you are riding the two-wheeler, a helmet is necessary for securing yourself from any physical injury while an insurance policy provides a financial safety against any untoward incident. Two-Wheeler insurance is an agreement contract between the insurer and you, through whom you get the reimbursement or compensated in case of any damage or loss or bodily damage to your two-wheeler. Very often, you must be confused as to what type of Two-wheeler insurance is the best suitable for a bike. Let us see the same below.

There can be two types of insurance coverage, namely, a third- party insurance policy and a comprehensive two-wheeler insurance cover.

Now let us have a look at the features of third- party insurance policy and a comprehensive two-wheeler insurance cover in detail.

Third-party Liability Insurance Coverage

This is considered to the basic type of insurance plan and is compulsory for every two-wheeler owner. A third-party liability insurance plan provides coverage for the damages that are caused to the vehicle or assets which belong to a third party together with physical injuries or even death of any third party. Additionally, a third-party liability two-wheeler insurance plan also provides coverage of personal accidents to its policyholder. But this plan does not offer the coverage for any damage or loss which is caused by self. Accidents have many legal implications and consequences for which you may have to incur high expenses and therefore, you must have this kind of coverage to protect yourself from the same. Mentioned below are the coverages that are given under this plan.

  1. Any damage which is caused to a vehicle, any assets or property which belongs to the third party is covered under this plan
  2. Any physical injury or death caused to the third party is covered under this type pf plan
  3. Coverage of Personal accident for self till a specific pre-defined sum assured

Comprehensive two-wheeler insurance cover

An all-inclusive two-wheeler insurance plan provides extended coverage of both third-party liability insurance as well as the damage caused by self with a personal accident. Hence, under this plan, your vehicle is not only protected against any accidents, but you will get the coverage for any natural disaster, burglary of your vehicle as well as man-made incidents.

A comprehensive motorbike insurance plan offers the below-mentioned coverage to its policyholders:

  1. Third-party legal responsibility covering any physical injury or even death of the third party together with compensations for damaging assets that a third party owns
  2. Coverage for Personal accident for you as the owner of your bike
  3. Coverage for any loss or damage caused to your bike because of an accident
  4. Coverage for any loss or damage caused due to any man-made incidents
  5. Coverage for any loss or damage caused because of sudden fire, flood, earthquake, lightning, hurricanes, etc.
  6. Constructive total loss which means when the bike or the vehicle is not damaged fully and can be brought into its original form after considerable repair.

Let us see a brief comparative study of Comprehensive two-wheeler insurance and Third- Party Liability Insurance coverage for your better understanding which will help you to know more about the insurance features and you will be in a position to choose appropriately.

Comprehensive two-wheeler insuranceThird-Party Liability Insurance coverage
Offers coverage for personal accident, coverage for third-party legal liability and own damage coverageOffers coverage against third-party legal liability with a personal accident cover
Relatively high premiumRelatively low premium
Many voluntary add-ons are offeredAdd-ons are not applicable
Availability of No Claim BonusNo Claim Bonus is not present under this plan

Now, the question is which type of two-wheeler insurance cover is best for your bike? Well, the answer cannot be given in just one word or one sentence. Let us see below.

Firstly, the choice of type of two-wheeler insurance cover depends on the frequency of your bike usage. For example, if you are using your bike very frequently and daily, then it is prudent to take an all-inclusive insurance coverage which will give you protection against all damages including the third-party coverage. However, if you do not use your bike daily or use much less and you are financially well off to take care of the expenses after an accident, then you can go ahead for a Third- Party Liability Insurance coverage.

Secondly, as mentioned in the table above, the cost of Comprehensive two-wheeler insurance is high as compared to the Third- Party Insurance plan. But simultaneously, you must note that the coverage amount under this plan is also higher.

Thirdly, most individuals choose for the third-party liability plan only, when buying an insurance policy for a bike, merely because its cheap, But the inclusions and exclusions under the plan are not considered resulting in incurring unnecessary expenses out of his or her pocket. A comprehensive two-wheeler insurance plan provides widespread coverage and hence it is better to have a plan that gives a much large coverage than ending up in financial dilemmas and stress in an unfortunate condition.

Now you know which is the best possible two-wheeler insurance plan for your bike, hence choose wisely so that the insurance covers you from all possible risks that may arise due to an accident. This will make your ride easy and you or your family will not have any financial burden. Hence, obey all the traffic rules and drive safely.

People Also Read