Two Wheeler Comprehensive V/S Third Party Liability Insurance
Two-wheelers have made commuting even to places that also have thin lanes. In this fast-paced lifestyle, everyone is in a hurry, but no one is on time, but with two-wheelers, everyone is just sorted. Two-wheeler rides are super fun and risky at the same time. Buying general insurance covers all the risk. Insurance plays an important role as the contract guarantees to indemnify the insured.
Before buying two-wheeler insurance, one needs to consider the utility and then select third party liability insurance or comprehensive insurance. The type of insurance depends upon coverage benefits preferred by the insured.
Significant differences between two-wheeler insurance and comprehensive insurance are:
- What is it? Two Wheeler third party liability insurance is one of the most basic types of two-wheeler insurance. Comprehensive two-wheeler insurance is all-rounder insurance that keeps the insured safe in all situations.
- Coverage offered: The two-wheeler third party liability insurance covers the insured only against the third party damages and losses. Whereas, the comprehensive two-wheeler insurance is more like general insurance that covers all damages and losses of the insured as well as the third party damages.
- Legal Requirement: The two-wheeler insurance third party liability insurance is a compulsion to buy as per the new traffic rules, whereas the comprehensive coverage has no such constraint.
- Customisation: Customization is not an option for the policyholders if they choose to buy the third party liability insurance. Customization and add ons are always possible with comprehensive two wheeler insurance. Customization should be chosen as per the coverage benefit requirement.
- Advantages: The third party liability insurance protects the insured when he or she accidentally injures somebody on road or damages someone else’s two wheeler . The comprehensive, third party liability insurance covers the insured both of the third party damages as well as the self-damage caused due to accident or natural calamities. No claim bonus is an add on benefit under comprehensive insurance.
- Disadvantages: The two-wheeler third party liability insurance doesn’t cover the insured at all; it just covers the third party damages. The comprehensive insurance plan is a little expensive as compared to third party liability insurance.
- Premium: The IRDAI predetermines the premium for the two-wheeler third party liability insurance plan as per the bike cc. The premium for two wheeler comprehensive insurance plan is expensive as compared to the third-party liability insurance plan. It is not predetermined but depends on various factors like the city where insured rides the bike; add ons if any etc.
Two Wheeler insurance types should be chosen depending on bike usage. The third-party liability insurance plan should be selected if the insured is using an old bike or rarely uses the bike, then this plan works the best for such riders. Although the comprehensive two-wheeler insurance is a little expensive, it provides complete coverage benefits to the insured, which is more beneficial.