Did you know what assures a sense of safety and security when riding your bike? Your safety gears! But isn’t that just for you? What about your bike? How do you ensure your bike’s safety? This is where a two-wheeler insurance policy comes into the picture. The Motor Vehicles Act makes it mandatory to have an insurance cover for all motor vehicles registered in the country. So, you need to compulsorily purchase a 2 wheeler insurance cover for your bike. There are two main types of insurance plans that you can buy – third-party and comprehensive plan. This might be a perplexing choice to come down to. Let us look at which type of insurance coverage is right for you. But before that, let us understand what the scope of each of them is.
Two-Wheeler Insurance: Third-Party Plans
A two wheeler insurance third party policy is also known as liability only insurance as it covers third-party risks. Damages caused to the vehicle of a third person (i.e. the person outside the contract of insurance) as well as its legal and financial liabilities are covered under this a third-party policy coverage. A legal liability may arise due to death or injury caused to that other person and includes damages to property. It is the base policy coverage that all vehicle owners must have. Thus, the two-wheeler insurance price for this type of plan is the lowest of the two. The limitation of a third-party cover is it does not include the damages to your vehicle or even injury to the rider.
Two-Wheeler Insurance: Comprehensive Plans
A comprehensive policy picks up the coverage right from where a third-party policy starts to limit. Here, the insurance policy covers for the damages to your vehicle as well as injury to you. Not only that, a comprehensive policy also includes liability for third-party losses. So, a compressive cover ensures all-round protection for your bike. In addition, a comprehensive plan can be fine tuned to fit you needs using add-ons which are optional over and above the standard comprehensive cover.
Now that we know the differences between the types of 2 wheeler vehicle insurance, let us evaluate which is the right fit for you:
Cost of insurance cover: Both plans have stark difference in their pricing due to their scope of coverage. With a limited coverage, third-party policies are cheaper when compared to comprehensive plans. If you are someone on a tight budget, you can choose to buy a third-party cover to comply with the regulatory requirement. On the other hand, new drivers are recommended comprehensive plans for its extended coverage to include any damages to your vehicle.
Add-ons: Fine tuning your policy coverage to fit your insurance needs is only possible in the case of comprehensive plans. With a third-party policy, you no longer enjoy this option and must be selected accordingly.
Compliance to the statue: As discussed above, a third-party policy is compulsorily required as per the Motor Vehicles Act of 1988. Hence, non-compliance of the law will attract hefty fines. However, comprehensive policy is not a mandatory required but an optional upgrade.
Now that the differences are discussed on the types of plans and which can be suitable, make the right choice based on your coverage requirements and two wheeler insurance rates