Own-Damage vs. Third-Party Insurance for Two Wheeler

Don"t get confused while choosing between own-damage vs. third-party insurance for your two-wheeler. Read the article to know the difference between the two.

Read on to know the difference between Own-Damage vs. Third-Party Insurance for Two Wheeler.

Own-Damage vs. Third-Party Insurance for Two Wheeler

Confused between choosing third party or own-damage insurance for your two wheeler? Here we explain to you the difference between the two. It is important to note that third party insurance is mandatory as per the Motor Vehicles Act, 1988, whereas, own-damage cover, although not mandatory is ideal to have for insuring your prized possession. Read on to know the difference between the two in detail before buying the Two-wheeler Insurance.

What is Own-Damage Bike Insurance?

As the name suggests, Own Damage Bike Insurance protects the vehicle against loss or damages caused due to an accident. The Insurance Regulatory and Development Authority of India permitted all bike owners to purchase standalone damage cover from different insurers. Bike owners can opt for their own damage cover for 1 year and renew the same as required. Additionally, bike owners can also enhance coverage by opting for add-ons by paying extra premium. In comparison to third party, own-damage offers wider protection.

What is Third-Party Bike Insurance?

The Motor Vehicles Act, 1988 makes it mandatory for bike owners to insure their bike with a Third Party Insurance policy. This type of bike insurance offers protection to the vehicle owner against damages, injury, or death caused to third party persons or property; it protects the vehicle owner against legal liabilities.

Difference between Own-Damage vs. Third-Party Insurance for Two Wheeler

Parameter Third Party Own-damage
Legal liability This type of insurance is mandatory as per the Motor Vehicles Act, 1988 This type of insurance is optional, depending on the vehicle owner and his requirements
Meaning Provides protection against damages caused to third party person or property Provides protection against damages caused to your own bike
Add-ons Cannot be purchased with this type of insurance You can enhance coverage by opting for riders like roadside assistance, return to invoice cover, zero depreciation, engine protection and more
Cost The premium for this type of insurance is decided by the IRDA and is less expensive than own damage cover. Premium is decided by the insurance company and depends on the bike's make and model, insured declared value, engine capacity, etc.
Suitability Coverage is limited Wider coverage

Third Party Bike Insurance Benefits

Given below are few of the benefits of buying third party bike insurance

Hassle-Free Documentation

Since your bike is not covered under this type of insurance, no inspection is required. You also do not have to produce too many documents. The coverage can be opted for as desired.

Peace Of Mind

You don’t have to go through any financial stress in case you end up damaging third party property or person since this type of insurance provides coverage for the financial damages you may cause

Legal Coverage

All your legal expenses are taken care of in case a case is registered against you for causing death, disability or damage to the third party.

Affordable

In comparison to own damage cover, premium for third party bike insurance is affordable.

Own-damage Bike Insurance Benefits

Given below are few benefits of choosing own damage bike insurance

Compare And Choose Insurance Online

You can opt for own damage cover form various insurers by comparing quotes and checking on the extent of coverage offered

Wider Coverage

Own-damage bike insurance protects the vehicle against the following events:

  • Accidental damages
  • Theft and vandalism
  • Man-made disasters
  • Natural calamities such as landslides, floods and hurricane
  • Theft and vandalism

Choose between your own damage cover or third party insurance for your bike keeping the above comparison in mind. To make an informed decision, evaluate your choice, premium paying capacity, keep in mind the age of the bike as higher the age of the bike, higher the premium and vice versa.

Also Read: Types of Bike Insurance Plans to Consider in India

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