Comprehensive V/S Third-Party Policy: Which One Should You Buy?
A two-wheeler is one of the most convenient and popular ways to commute. Considering its nimbleness and agility, it is by far the best way to ensure you are not stuck in traffic snarls while saving on the money with limited cost and higher fuel economies. While the same two-wheeler provides a fast and reliable solution to your travel woes, it is more prone to accidents with lower levels of safety as compared to a four-wheeler. Hence, buying an insurance cover is crucial, and ignoring it is not worth endangering your life.
Third-party liability cover and Comprehensive insurance cover are two types of policies that you can choose when buying a bike insurance online. Both policies have different scopes and selecting a plan that checks all the right boxes is essential. Thus, just like deciding on the bike, it can get confusing which insurance policy is right for you. This article explains the differences between the two types of insurance covers and what you need to select.
Difference between a third-party plan and a comprehensive plan
|Criteria||Third-party liability policy||Comprehensive policy|
|Meaning||A third-party liability plan is a policy that covers legal liabilities payable to a third person arising due to an injury or property damage.||Comprehensive plans offer own-damage cover for the repairs to your bike in addition to a personal accident cover and third-party cover.|
|Add-ons facility||Third party bike insurance cannot be loaded with add-ons to enhance the policy scope.||The coverage of comprehensive plans can be customised using add-ons to enhance the policy scope significantly.|
|Legal requirement||A third-party cover is the minimum required insurance coverage and thus, a legal requirement as per the Motor Vehicles Act of 1988.||Comprehensive plan is not a legal requirement and in fact, an optional upgrade to increase the insurance policy’s scope.|
|Policy scope||Third-party plans only provide financial protection for damages or injuries to a third-person and offer no coverage for the policyholder.||Comprehensive plans include protection from the repairs that may be required for your bike in addition to providing third-party coverage. Further, any natural calamities or man-made perils like riots, vandalism are covered in the comprehensive insurance coverage in addition to theft.|
|Premium||Considering it is a minimum required insurance cover, the premium rates are regulated by Insurance Regulatory and Development Authority of India (IRDAI). You can visit the official website of IRDAI for further details.||The rate for third-party cover in comprehensive plans are set by IRDAI whereas insurance companies are free to determine the own-damage premium rates. You can visit the official website of IRDAI for further details.|
|Sufficiency||Third-party plan is often insufficient when it comes to protecting your own bike. Since the policy provides only for the repairs to third persons, it lacks any sort of coverage for the policyholder.||Comprehensive plans are adequate insurance policies that provide a 360-degree protection for damages to your bike in addition to any personal injuries. Further, customisation is also possible using the various add-on covers.|
|Markdown in premium||No concession in premium is available since it is the bare minimum insurance coverage, and its rates are regulated by IRDAI. You can visit the official website of IRDAI for further details.||Comprehensive plans receive a markdown in its premium using the No-Claim Bonus (NCB) facility. Here, the insurer offers a concession for the own-damage premiums on bike insurance renewal date in case of a prior claim-free policy period.|
* Standard T&C Apply
Which policy should you buy?
Keeping in mind the above policy features, you must select a plan that checks all your requirements. At the same time account for your budget allocation towards insurance policy and take full advantage of the coverage offered by both policies. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.