Owning a bike is a great convenience, but it also brings responsibilities. One of the most significant duties is ensuring your bike is insured adequately. Thus, owning at least a third-party insurance policy is mandatory in India.
But is that enough?
Here are some reasons why you should get a comprehensive bike insurance policy instead.
What is a Comprehensive Bike Insurance Policy?
Third-party bike insurance gives third-party legal protection, while a comprehensive bike insurance policy covers more. It protects you and your bike, as well as other people, in case of an accident. If your bike gets damaged or someone else’s property is involved, the insurance will protect you from financial loss.
It shields you from any accident, theft, natural calamities, artificial triggers and other perils that may befall your bike. It’s designed to cover all possible risks related to your bike.
Difference Between Third-Party and Comprehensive Insurance
The primary difference lies in the coverage. Third-party policy will only cover losses on other people’s vehicles or property in case of an accident. On the other hand, a comprehensive policy also covers damages to your bike that may have occurred from an accident.
For instance, if you have a third-party policy and your bike gets destroyed in an accident, it is your responsibility to cover the repair costs. However, an insurance company will provide all these expenses in consultation with a comprehensive policy.
Here’s a quick comparison:
| Feature | Third-Party Insurance | Comprehensive Insurance |
| Covers your bike | No | Yes |
| Covers third-party damages | Yes | Yes |
| Covers theft of bike | No | Yes |
| Covers natural disasters | No | Yes |
| Add-on covers available | No | Yes |
Advantages of Purchasing a Comprehensive Bike Insurance Policy
It would help if you opted for comprehensive coverage instead of third-party insurance for several reasons. Here are the key benefits:
Coverage for Your Bike
A comprehensive policy will address the damages on your bike resulting from an accident, natural disaster, fire or even theft. If you run into a pole or if your bike gets stolen, the insurance firm will compensate for the money loss. This is important, especially if you have bought an expensive bike.
Protection Against Theft
Bike owners are often anxious about the possibility of theft. If your bike gets stolen, the insurance company will pay for the bike, depending on the insured sum. This allows you to avoid being completely wiped out financially.
Coverage for Natural Disasters
Floods, earthquakes, cyclones, storms, etc., are natural disasters that may severely affect your bike. Bike insurance will cover the expenses incurred in repairing or replacing damaged items from such occurrences. This is especially helpful in areas that experience more than usual natural disasters.
Coverage for Man-Made Disasters
Apart from natural calamities, man-made disasters such as riots, strikes, vandalism, or terrorist activities can also damage your bike. A comprehensive policy will cover the financial losses arising from these events.
Accidental Damage
Accidents can happen anytime, even if you’re a cautious rider. A comprehensive bike insurance policy will cover the repair costs if you hit another vehicle or lose control on a slippery road. This way, you don’t have to spend your savings to fix your bike.
Liability Coverage
A comprehensive policy will include third-party risks, assuming that you are at fault and have caused damage to another individual’s car or property. The insurance company will pay for these costs if a person sues you. This relieves you of the challenge of personally meeting the costs of third parties damages.
Add-On Covers to Enhance Your Policy
A two wheeler insurance also includes various add-on covers for additional protection. Some popular add-ons include:
Zero Depreciation Cover
Without this cover, the insurance company will account for depreciation when settling a claim. This means you will only be compensated for a part of the repair or replacement costs. A zero-depreciation add-on helps ensure you get the total amount without depreciation deductions.
Roadside Assistance
This is very helpful, especially if you are stranded in the middle of nowhere with a bike. This service arranges for your motorcycle to be repaired on the spot or transported to the nearest garage by a tow truck.
Engine Protection Cover
The engine is undoubtedly one of the most costly parts of any bike you wish to own. The engine protection add-on will cater for the repair costs in cases where the concerned engine has been affected by issues such as water ingress or oil leakage.
Consumables Cover
During bike repairs, consumables like engines, brakes, nuts, and bolts are replaced. Usually, these are covered under some form of insurance other than the ordinary. Nevertheless, these costs are also claimed back when the consumables are attached to the bike.
How Much Does Comprehensive Bike Insurance Cost?
The cost of purchasing the comprehensive bike insurance policy is higher than that of the third-party insurance policy due to the coverage offered. However, the price varies based on several factors:
- Bike’s model and make: The costs for repair are relatively higher for high-end bikes. Hence, the insurance premiums for such bikes are high.
- Age of the bike: These bike insurance premiums vary depending on the model, especially the newer models.
- Location: You will be required to pay a higher premium if you live in a region with high theft or accident rates.
- Add-ons: By taking extra covers, the premium will be higher in this case.
To choose the best insurer, always compare quotes from different companies. Today, the majority of insurance companies provide immediate quotes and simple online purchases through the internet.
Is Comprehensive Bike Insurance Mandatory?
Although Third-party insurance is compulsory as per Indian law, comprehensive insurance is not. However, considering the risks and financial burdens that could arise from an accident or damage, a comprehensive policy is highly recommended. It guarantees legal requirements and provides satisfaction, if not a sense of security, that bike and third-party risks are catered for.
Thus, a comprehensive bike insurance policy is very beneficial because it provides the coverage you need for your bike. This policy eliminates the chances of you having to strain financially in case of an accident, theft or even a calamity. Despite the fact that it may cost more than third-party insurance, it proves more worthwhile with more coverage.