Although IRDA (Insurance Regulatory and Development Authority) of India has made it mandatory for bikers to take up third party insurance policies, often it is not complied with. Third party insurance cover was made compulsory, because the owner of a bike may not have sufficient funds to compensate a third party for the losses, or damage caused by the former in an accident. Under these circumstances, if you have third party insurance, all the cost caused to the third party is taken care of by the insurance company. Having said this, third party bike insurance does not really serve the purpose for you if you have a brand new and expensive bike. You should opt for a Comprehensive bike insurance plan as it also covers against theft, damage and loss in addition to the coverage that third party bike insurance offer.
Comprehensive Bike Insurance VS Third Party Insurance
There exist a lot of difference between third party bike insurance and comprehensive bike insurance, you could say tug of war – third party vs comprehensive. Honestly, third party bike insurance covers only the third party’s property repairs, injuries to the victims and damages caused. Sadly it does not have any coverage for policyholders themselves, which is why comprehensive bike insurance works better than third party insurance.
The comprehensive bike insurance policy covers the damage or loss to the two-wheeler of the policyholder on account of an accident, fire, lightning, cyclone, transit by rail, road, air or elevator, terrorist attack, any malicious act or even self-ignition. Apart from this, it also covers (you must opt for) third-party liability for if the opposite party who is at fault is uninsured or underinsured. Nevertheless, you will not get such facilities under third party insurance.
So basically, once you are on comprehensive bike insurance, you are protected from natural calamities, man-made calamities or accidents.
Fair or Unfair – You Decide
Let us look at a situation where a policyholder has only a third party insurance, and if he meets with an accident where not only the third party’s vehicle is damaged and injured but the policyholder’s too. Now since only a third party’s insurance coverage exists, the damages and repairs for the third party are done by the insurance company but the entire expenditure for the policyholder’s two-wheeler repairs, damages caused, repairs and maintenance needed are borne by the policyholder himself. How fair does this sound?
On the contrary a condition where due to your fault, a mishap takes place resulting in casualties, you are emotionally stunned for sure, but somewhere down the line you thank the comprehensive bike insurance coverage for taking in all the expenses. Literally, a very little amount goes from your pocket (depending upon the voluntary deductible clause) and you are all distressed.
With the number of accidents increasing, only a third party bike insurance cannot suffice the cause. You definitely need much more than a third party bike insurance policy. People often feel “I am a safe driver. Nothing can go wrong” and opt for third party insurance. Well, there’s nothing wrong in it. But there is always a chance that the opposite driver may not be a safe driver. You could be in the right lane, but cannot predict others. In such a situation, third party insurance hardly plays any role.
People tend to spend more money at exotic restaurants, but when it comes to their own protection, they become a miser. Comprehensive bike insurance is expensive compared to third party insurance, but the number of benefits it is serving is innumerable. It is definitely a better choice for bike owners.