×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Third party vs comprehensive cover: A Complete Guide for Buying Two-Wheeler Insurance

Last Updated 12 March 2024, 09:04 IST

Dr Aparajit Sharma, a medical student, bought a new bike last year using the savings from his monthly stipend. It was the first time that he owned a personal vehicle, which was a matter of great pride for him, especially because he had paid for it himself. But to his utter shock, only a few days after he had purchased it, his bike was stolen from the parking nearby his hostel. He filed a complaint with the police but did not get his bike back. As per National Crimes Record Bureau data, around two lakh two-wheelers get stolen in India every year. Out of these, only some 45,000-50,000 are recovered[1]. Since Aparajit Sharma had fortunately taken a comprehensive insurance policy, he was compensated for his loss by the insurance company to replace his motorcycle.

In India, insuring your vehicle is mandatory. However, while choosing an insurance policy, it is vital to review the various kinds of financial losses that it covers. There are mainly two types of insurance covers -- comprehensive insurance and third party insurance. While having at least third-party liability insurance is a mandatory by law in India, it is recommended that you voluntarily opt for a comprehensive insurance policy that covers almost all kinds of financial losses for your vehicle. The first step to buying two wheeler insurance online is understanding the difference between these two types of insurances.

Third-party insurance
This policy only covers the cost of the third-party damages that may arise due to an accident. This is a mandatory cover without any exception and its premium is fixed by the Insurance Regulatory and Development Authority of India. It is a limited coverage policy as it does not cover the risk of damage to the vehicle of the policyholder. While this cover is cheaper than a comprehensive policy, it is advisable to not restrict your coverage by only having at third-party insurance only.

Comprehensive insurance:
A comprehensive insurance policy provides complete protection against damages to all parties involved in an accident including your own vehicle, the driver and passenger, as well as any third party damages. It also includes protection against theft and damage due to natural and man-made disasters, apart from providing protection against legal liability.

A comprehensive policy also has the option to customise it by opting for additional covers, often called riders, such as a personal accident cover, zero depreciation cover, insurance for engine and accessories, and so on. While everyone must consider this policy, it becomes critical to have it, especially for new and high value vehicles. In case of any damage, the insurance company takes care of the expenses and hence the bike-owner need not worry. Even in case of an old vehicle, having a comprehensive insurance cover for your bike would free you from financial woes in case of a mishap. After all, it not only covers the vehicle, but provides protection to you as well.

Steps to purchase a policy that is right for your needs:

Buying insurance is relatively simple in the 21st century, and in many cases, can be done online in a few minutes. No physical documents are required. Insurers can send the policy document and proposal form digitally to the registered e-mail or mobile number provided by the buyer.

While purchasing an insurance policy, you must evaluate the products being offered by various companies. Compare the premium with a two wheeler insurance premium calculator and also evaluate the claim settlement ratio of the company. After all, a major factor that makes a big difference is the customer service track record. It is a good idea to go with a major player like Bajaj Allianz General Insurance, which has an impeccable record of settling claims quickly and seamlessly. Its hassle-free, convenient and cashless claim settlement process ensures you get the defined benefits of your insurance at the earliest and without any fuss.

When it comes to purchasing a cover, Bajaj Allianz General Insurance lets you buy your two-wheeler insurance online with just a few clicks and within minutes. You just fill the required details, pay the premium amount and voila! You are done. The same principle applies for insurance renewal also. In terms of customer service, it provides round the clock assistance with real-time updates on the status of your claims through SMS.

Some good practices to follow

In case you haven’t made any insurance claims, you can claim the ‘no claim bonus’ (NCB) during two wheeler insurance renewal. NCB is a unique feature wherein you get a reward for every claim free year. Bajaj Allianz General Insurance allows you to transfer up to 50 per cent of the NCB when you switch your previous policy from a different insurer. The idea is to reward your responsible driving behaviour even when you switch insurers. Another good practice to reduce insurance premium is by installing additional safety and anti-theft devices.

There is no doubt that if you really care about your bike, comprehensive bike insurance is the way to go. Those individuals who buy two wheeler insurance only for the sake of complying with the mandated law, mostly buy third-party insurance only. However, that means that they themselves essentially stay underinsured, and so does their vehicle. Be a smart buyer and get complete coverage for yourself and your two-wheeler by choosing comprehensive two-wheeler insurance, even if it costs a little extra. You can instead save some money on premium by adopting good driving practices.

This article is part of a featured content programme.
ADVERTISEMENT
(Published 30 September 2020, 08:31 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT