Third Party Vs Comprehensive Two Wheeler Insurance

Many people after purchasing their first vehicle find it very difficult to make a choice on the type of vehicle insurance they should go for, a third party or a comprehensive two-wheeler insurance. Well, for those who really do not have any knowledge about two wheeler insurance at all, this choice can be even more difficult. In order to make an informed decision in this matter, you should first gather enough information about both these types of insurances. Luckily, in this article, we are going to talk about both these types of two-wheeler insurances and help you out in understanding, how both these are equally important? We will discuss different aspects of each of them and compare them too. So, without wasting any further time, let us get right into the main discussion.

What is third party two wheeler insurance and Comprehensive Insurance?

Although, both of these are types of vehicle insurance the coverage provided by both of them is completely different. While a third party insurance provides cover for third party damage, a comprehensive plan provides cover for personal and vehicle damage. To understand both of them properly, let us divide our further discussion into a few sections and compare both these insurances with each other.

• Coverage provided
  The first point of difference between third party and comprehensive plans comes from the coverage they provide. A third party two wheeler insurance provides coverage for any damage caused to the third party’s vehicle, property or bodily injuries by you while you were using your vehicle. It also provides financial and legal assistance in case of any legal action taken by the third party against you. It is a basic form of bike insurance and is referred to as ‘act only insurance’. Just so that you know, in the case of Third party insurance first party is you, the second party is your insurer and the third party is another party who got into an accident caused by you.
  When it comes to coverage provided under a comprehensive vehicle insurance plan, not only it covers the damage caused to you and your car but also the coverage provided goes beyond than that. Damage caused to your car in case of any natural calamity is also covered. Comprehensive plans also come with many extensions, which will be discussed later in this article.
  To clear the fog, neither of these plans is complete in terms of protection. The coverage provided by both of them is complementary to each other and thus, both of them together are required if you want to enjoy complete protection.
• Claim Process
  Let us tell beforehand that the claim procedure of comprehensive insurance is much easier than third party two wheeler insurance. In the case of Third party insurance, it is both time taking and difficult. It starts with filing an FIR in the police station near to the spot of the accident, which is then followed by making of charge sheet by the police. A lawyer hired by you after which a fair trial is conducted files a case in the tribunal court. If court’s decision falls on your side, the only you are eligible to get a compensation from the third-party insurance of someone else. Believe it, this process might sound easy but it is not
  In the case of comprehensive vehicle insurance, companies keep trying to make the claim settlement process easier and easier for their customers. Nowadays, you can get your claim settled in just a few hours. You just have to upload the images of the damage caused to your vehicle and fill in some forms.
  So, claim settlement is clearly convenient in case of a comprehensive vehicle insurance.
• Extensions
  As you must have read previously that third-party plans are basic in nature and therefore, they do not come with any type of extensions. While on the other hand, you can get third party liability cover as an extension along with your comprehensive two-wheeler insurance plan. For comprehensive insurance plans, there are various extensions that insurers provide to their customers. Zero depreciation cover, theft protection etc. are some of the examples.
• Price Comparison
  The price of an insurance plan is determined by the coverage it provides and as we saw in coverage section that comprehensive plans offer broader coverage along with a lot of extensions while a third party insurance only provides basic coverage without any extension, therefore comprehensive insurance plans are more expensive. A third party two wheeler insurance comes with lower premiums but offers protection only for the damage caused to a third party by you.
• No Claim Bonus
  No claim bonus is an insurer’s reward offered to the policyholders who do not make any claim during the term of the policy. A no claim bonus is used to get a discount at the time of renewal of insurance. The discount ranges from 20% to 50% and is offered based upon the number of years for which claim was not made. Unfortunately, no claim bonus is only offered on comprehensive insurance plans. The third party two wheeler insurance does not come with any no claim bonus benefits.
• Peace of Mind
  Any insurance purchase you have made in your life was done for one reason only i.e. Peace of Mind. Vehicle insurance provides a peace of mind that for any damage caused to you, your vehicle or any third party, your insurer will be there to cover the damage and protect you in case of any legal action.
  When it comes to complete peace of mind, both third party and comprehensive plans together are necessary.

Rules and regulation regarding Vehicle insurance in India

According to Indian Laws, under Motor Vehicle Act, 1988, every vehicle owner has to have a third-party insurance in order to drive his vehicle legally.

There is no rule regarding a comprehensive plan under Indian rules and regulations.

Final Verdict

Now that we have discussed a lot about both the types of Insurances, we are in a good position to make a choice. Before we proceed further, we want you to answer one question; do you really think there is a choice between third party and comprehensive cover? If your answer were NO, then we would feel that we have succeeded in our objective. See, throughout the article, we were able to observe that both these plans offer different types of coverages and therefore, both of them are required to get complete protection. In the end, we hope that now you also share the same opinion and we wish that you got the best deal for your vehicle’s insurance.