As modern India progresses into the 21st century, the need to have a viable and dependable mode of transportation is paramount. This need has fuelled steady growth in the number of two wheelers plying on the road. It is one of the most cost effective mode of daily commute for lakhs of Indians. But to ensure the safety and protection of the vehicle as well as the driver, by law, it is mandatory to have a two wheeler insurance. While there are many options in the market, let us look at the main considerations to be kept in mind while making the decision to purchase two wheeler insurance.
This cover offers protection against any liability that has arisen due to damage to third party and/or resulting in temporary or permanent disability to third party. This type of policy will not compensate for the cost of loss/damage of your two wheeler, neither will it provide you personal accident cover for driver and rider.
This cover offers protection against theft, loss and damage. Some plans offered by insurance companies also offer personal accident cover for the owner or rider in event of accident. In addition it also covers the owner’s liability in event of death/disability of third-party or loss or damage to third party property.
Taking a third party insurance is a statutory requirement under Motor Vehicles Act, 1988. It covers your legal liability in event of death/disability of third-party or loss or damage to third party property
Third Party Insurance policy takes care of legal liability and financial burden of the policyholder, providing cover for expenses that relate to legal fees and procedures.
The process to buy Third-Party Insurance policy is easy and can be bought from the comfort of your house. It can be accessed from anywhere.
The coverage offered under Third Party Liability Insurance is evidently a cost effective protection to the policyholder in the unforeseen event of liability towards a third party due to their disability or demise.
Comprehensive or a package policy offers insurance cover to insured against own damage and also against third-party liability. It can also have additional and optional features which can be included if you want to avail additional coverages. Own Damage (OD) covers loss or damage to your two wheeler due to accidents, fire or theft etc. In case of an accident, an own damage cover facilitates repair or replacement of parts of your two wheeler damaged in the accident either through cashless claim process or by mode of reimbursement as per the inclusions of the insurance policy contracted.
This type of cover does not provide the policyholder any extended set of benefits as are facilitated by add-on covers such as Road-Side Assistance, Extended Type Coverage, Key protection and more. It does not cover loss / damage
Now let’s look at the comparison of third party liability and comprehensive insurance plans
|Points of Difference||Third Party Liability||Comprehensive Insurance|
|Coverage Offered||Covers liability towards third party induced claims only||Covers the damage to vehicle or owner and also the third party|
|Exceptions||Usual wear and Tear and Mechanical breakdown not covered||
Usual wear and Tear and Mechanical breakdown covered
(for parts impacted in the event of an accident only)
|Add-On Covers||Personal Accident Cover||
Zero Depreciation Cover, Engine Protector Cover, Return to Invoice,
Roadside Assistance Cover
|Cost||Premium is less; Limited Cover is offered||Premium is higher, provides greater scope of protection|
|Which is better?||Limited Coverage||Extensive Coverage|
Comprehensive Two Wheeler Insurance cover is recommended as it provides insurance cover for any damage to the two wheeler and injuries to the driver. It also provides insurance cover against the legal liability and total/partial disability to the third party. Having said this, the best judge of choice is you. The only factor going against the comprehensive insurance is that its premium is high.
It is imperative that you renew the policy on time else the policy will fall into a lapsed state. You can avail of the No Claim Bonus (NCB) only if the two wheeler insurance policy is in force, also any claim raised in the period where two wheeler insurance policy is not in force is bound to be rejected.
Digitization is having an immense impact on the way we are fulfilling our needs, insurance companies have also taken up this digital revolution in a big way and are promoting fresh issuance and renewal of two wheeler insurance policies through online medium. We can also save our time by doing the renewal of the policies online
For more details on risk factors, terms and conditions please read sales brochure carefully before purchasing the insurance policy/concluding a sale.
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Landmark Insurance Brokers Pvt. Ltd.
IRDAI CoR No: 216 | Broker Code: DB 089/03 | Valid From 13/10/2018 till 12/10/2021 (originally licensed on 13/10/2003 and renewed thereafter) | Category: Direct (Life & General) | A member of IBAI
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