Third-Party VS Comprehensive Insurance in India

Insuring the vehicle is mandatory in India by law. This rule also applies to two-wheelers. Non-compliance of the law could attract legal punishments that include heavy penalties and prosecution according to the road safety laws listed under the Motor Vehicle Act. Having an insurance policy also provides a sense of security since riding two-wheelers is becoming riskier with each passing day in the country.

Third Party Bike Insurance

Third Party Two Wheeler Insurance Policy Rates

Coverage for third-party liability concerning the insured two-wheeler is compulsory, this means that the insurance company should cover the damage/loss caused due to a third party. To understand this topic better, we need to uncover the two commonly-used terms used in the insurance parlance. Third-party cover and Comprehensive cover.

While the former only insures the individual from third-party liability, the latter also covers the damage/loss that is caused to the insured vehicle.

The third-party two-wheeler insurance premium rates were revised by the Insurance Regulatory and Development Authority of India (IRDAI) in 2017. The hike in premium was quite high. The table below shows the difference in the third-party bike insurance premium cost:

Third Party Two Wheeler Insurance Rates in 2018

Vehicle Engine Capacity	Percent Revised Premium Rate
Up to 75 CC	569
76 CC to 150 CC	720
151 CC to 350 CC	887
Above 350 CC	1,019

Advantages & Disadvantages of Third Party Liability Insurance

Advantages	Disadvantages
Referred to as the “Act Only” cover, this type of insurance cover fulfills the statutory requirement of having a cover for third party person/property damages	As stated earlier in this article, the main drawback is that it does not provide monetary cover for the insured vehicle or its occupants.
Premiums are economical compared to its counterpart. Can be easily affordable	In case of a mishap that causes major damage to the insured vehicle, the owner will have to shell out the repair and replacement expenses from his own pocket.
Third party cover can be procured in easy steps with minimal documentation and checks as it does not involve cover for the insured two-wheeler.	Unlike Comprehensive coverage, very little rider and flexible options are available, limiting the enhancements.

Third-party VS Comprehensive Insurance

Criteria of Comparison	Third-Party Insurance	Comprehensive Insurance
Coverage offered	Covers losses or damages caused to a person or their property, or another vehicle due to an accident.	Covers financial and legal liabilities arising out of damages caused to a third-party as well as any loss or damage caused to your two-wheeler due to sabotage, accidents, fire, theft and vandalism, malicious acts, terrorism, and civil disturbances such as riots, natural calamities like earthquakes, floods, etc.
Exceptions Of The Policy	Damage or loss caused to your own two-wheeler Injury caused to self, due to accident Damage or losses as a result of the following: Theft Sabotage Natural calamities Fire Normal wear and tear Civil disturbance Mechanical or electrical breakdown Damage or loss caused in following circumstances: Riding without an active license Riding under the influence of alcohol or drugs If the policy lapses	Damage or loss caused as a result of  - Usual wear and tear - Electrical or mechanical breakdown Damage or loss caused in following circumstances: Riding without an active license Riding under the influence of alcohol or drugs If the policy lapses
Add-On Covers Available	Personal Accident cover	Return to invoice Zero depreciation Cover for accessories Pillion Rider Accident cover Roadside Assistance and more
Cost	The coverage offered in a third-party insurance policy is limited. The policy is cheaper in comparison to a comprehensive insurance policy. The IRDA determines the premium of a third-party liability insurance every year based on engine displacement.	Comprehensive bike insurance is costlier in comparison to the third party insurance as it provides a greater scope of protection.
Which is better?	Limited coverage offered.	Extensive coverage offered Better protection

Two Wheeler Insurance Renewal

A policyholder should renew their insurance policy before it reaches its expiry date. It is vital to ensure that your vehicle is safe for its entire lifetime against a range of incidents that causes financial damages. Policyholders can also claim the No Claim Bonus (NCB) and avail discounts in the consequent premiums.

Before your insurance policy lapses, you must contact your insurance agency and inform them regarding the policy lapse. You should also inquire whether the vehicle should be assessed or not. To estimate the condition and value of the vehicle, the buyer can contact a vehicle dealer or an insurance agent. If you want to change your policy from one insurance company to another, you can retain No Claim Bonus, if you do so 90 days before the expiry date.

How Can You Renew Two Wheeler Insurance Policy Online?

Getting a vehicle has become a necessity in today's world. With digitalization spreading to every sector of life, it has become relatively easy to buy an insurance policy online. You can compare the various policies available online through many third-party insurance and finance-related websites. However, you shouldn't select a policy based on its premium cost blindly. Instead, you must look for critical factors which could be helpful in getting the best coverage for the vehicle such as, coverage offered, exceptions of the policy, etc.

Points To Remember For Bike Insurance Renewal

• You should renew the policy well ahead of time to avoid policy lapse

• Do adequate research before purchasing a policy. Compare the features, premium rates and other characteristics of the policies offered by different companies, to get the best deal.

• Make use of the No Claim Bonus (NCB) if you haven't made any claims for more than a year.

How A Long-Term Two-Wheeler Insurance Policy Can Be Beneficial

The Insurance Regulatory and Development Authority of India (IRDAI) stated that there's a customary lack of awareness in India linked with the importance of an insurance policy. Most people are reluctant to purchase or renew insurance. What vehicle owners in India need to realize is that an insurance policy is an exigency plan for an unprecedented incident.

For encouraging two-wheeler riders to buy vehicle insurance and renew it on time, the IRDAI has now authorized insurance agencies for providing long-term insurance policies for up to 3 years. Additionally, if someone buys two-wheeler insurance online, they can avail insurance with a few clicks.

Documents Needed For Motor Insurance Policy Renewal

You'll be required to provide the following documents for renewing your insurance policy for your bike:

• Details of the Policyholder such as name, date of birth, address, gender and details of the occupation

• Photocopy of DL

• Registration Certificate(RC) of the vehicle and registration number of the vehicle

• Address Proof

• Policy Number

What Should You Choose?

A Comprehensive Cover is the best insurance policy. However, the decision of choosing the type of insurance policy you want rests upon you. If you believe that the riding conditions in your area are safe and it isn't prone to accidents, you can take a third party cover. The only significant aspect which can prevent you from availing a comprehensive policy is the premium rate. Taking into account the steady rise in road accidents in India, Comprehensive insurance can cover you against all forms of liabilities and damages.