Owning a bike or any two-wheeler is a responsible job. Also, driving a two-wheeler without insurance can attract a fine of Rs. 2000 or 3 months imprisonment. Besides this, a subsequent offence can lead to a fine of up to Rs. 4000. Hence, one can consider opting for third-party two-wheeler insurance with an own damage bike insurance policy to shield against penalties and financial losses.
But, before buying a two-wheeler bike insurance policy, it is essential to know the options available in the market. For ease of understanding for prospective policy buyers, details regarding types of two-wheeler insurance are provided below.
Types of Two-Wheeler Bike Insurance Available In India
Primarily, there are three types of bike insurance available in India, namely –
- Comprehensive Bike Insurance
- Third-Party Bike Insurance
- Own Damage Bike Insurance
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Details concerning these types of bike insurance policies are provided below.
Comprehensive Bike Insurance
Comprehensive insurance for bikes is a combination of third party bike insurance and own damage bike insurance. It covers accidental damage to a third party and the insured bike. Besides this, a comprehensive insurance policy covers damages against theft, loss, and natural calamities.
Third-Party Bike Insurance
This is the most common type of two-wheeler insurance policy that covers damages your two-wheeler can make to a third person, vehicle, or property. This policy is also mandated by law, or individuals can be liable for a fine of Rs. 1000 to Rs. 2000. However, own damages, drunk driving, and driving without a license are not covered under the same.
Own Damage Bike Insurance
An own damage bike insurance policy only covers owners’ vehicles against losses and damages. For example, it covers damages of a two-wheeler against accident, theft, natural calamity and fire. But individuals must remember that third-party liabilities, consequential damages, driving without a license, drunk driving, and contributory negligence are not covered.
Comparison between Three Types of Bike Insurance
|Third-Party Bike Insurance||Comprehensive Bike Insurance||Own Damage Bike Insurance|
|Covers the loss suffered by a third party due to an accident caused by the insured bike||Both third parties and the insured bike damages is covered||Covers damage to the insured bike|
|Provides limited coverage||Gives extensive coverage||Provides limited coverage|
|Premium rates on the lower side||Premium rates on the higher side||Rates of premium are nominal|
|Damage to the insured bike due to natural calamities, theft, riots are not covered||Covers damage to the insured bike due to natural calamities, riots, theft.||Damage to the insured bike due to theft, a riot, natural calamities is covered|
|Recommended if the bike is too old or rarely used||Best suited for individuals who need complete coverage||Recommended if already owns third-party two-wheeler insurance and seeking comprehensive coverage|
Hence, from the comparison, it is evident that comprehensive insurance for bikes provides extensive coverage for a two-wheeler. Apart from it, this type of insurance policy is a blend of third-party and own damage bike insurance policy and offers the benefits of add-ons. In comparison to it, a third-part insurance policy covers any damage caused to a third-party bike or property only in case of an accident or collision.
However, if an individual already owns a third-party two-wheeler insurance policy, they can opt for an own damage bike insurance as this will cover their own bike also. This way, they can get extensive coverage and help save money against damages.
Therefore, individuals can choose own damage bike insurance with third-party or comprehensive bike insurance for full coverage depending on personal need. Also, it is essential to check the add-ons such as zero-depreciation cover, breakdown assistance cover, consumable cover, and others for all-around protection of a two-wheeler.