Two Wheeler Insurance: Third Party vs Comprehensive Plans

Difference between Comprehensive and Third Party Bike Insurance | Digit

It is crucial to buy and renew motorcycle insurance on time to avoid potential trouble. The main distinction between Third-Party and Comprehensive Bike Insurance is the benefits of coverage. Comprehensive bike insurance allows you to extend your coverage beyond the basic advantages with a range of add-ons and covers. In contrast, third-party bike insurance only covers third-party-related liabilities.

To help you select the appropriate insurance for your motorcycle, we’ve included the advantages and disadvantages of each.

Comprehensive Motorcycle Insurance

A comprehensive bike insurance gives your bike extensive coverage by covering everything from third-party-related liabilities to damages to your motorcycle due to unforeseen circumstances such as natural calamities, accidents, collisions, etc. You can also choose from various add-ons to improve the coverage of your two-wheeler, either individually or in combination. *

The advantages of Comprehensive Motorcycle Insurance

  • It provides coverage for injuries to your own bike, saving you money in case of accidents. ##
  • You are shielded from the obligations and losses of other parties.
  • It offers defence against losses brought on by natural disasters like floods, cyclones, etc.
  • In the event that your bike is stolen, it offers compensation. Additionally, if you choose a Return to Invoice Cover, you will be paid the value of the previous invoice plus any applicable road tax. **
  • Compared to third-party insurance, it is more affordable and offers more coverage.
  • It covers injuries to individuals. The inclusion of this in your bike insurance policy is required by law.

Restrictions of Comprehensive Motorcycle Insurance

  • It does not cover the normal wear and tear on your bike.
  • It cannot prevent the timely degradation of your bike over time.
  • Your bike’s fibre and rubber components are typically only fully protected inside regular bike insurance if you’ve added a special add-on.


  • Any claim where one was found to be riding intoxicated won’t be reimbursed.
  • Your claim won’t be considered if it’s determined that you were operating a vehicle without a valid licence.
  • Driving with a learner’s permit without a valid licence holder in the passenger seat would make your claim invalid.
  • Consequential damages are any losses and damages incurred as a result of the accident, and your bike insurance claim doesn’t cover them unless you have purchased a special add-on that does.
  • You won’t be compensated for a claim if you have shown contributory negligence, which is harm or loss brought on by your own carelessness or ignorance.
  • If the specific add-ons have not been purchased, you may not be eligible to receive its benefits.

Third-party Bike Insurance

In accordance with the Motor Vehicles Act of 1988, third-party bike insurance coverage is a mandate and covers third-party damage. Only the minimum, legally required amount of losses and damages to third-party liabilities are protected. This wouldn’t compensate for your own bike’s losses or damages. *

Third-Party Bike Insurance’s advantages

  • Liabilities to other parties are covered.
  • It covers you legally because, in accordance with the Motor Vehicle Act, you must have at least a third-party policy to be authorised to ride. You risk receiving a large fine if you don’t have one.
  • It shields you from having to pay penalties out of pocket.

Restrictions of Third-Party Bike Insurance

  • It doesn’t cover losses or damages to your bike due to mishaps like collisions, fires, or natural disasters.
  • You cannot add extra coverage or add-ons to your bike insurance policy.
  • You cannot modify your IDV.
  • It doesn’t compensate you if your bike is stolen.


  • Any damages to your own bike as it only covers losses and damages to third parties.
  • It is illegal to be riding while intoxicated. If you’re found doing so, your insurance claim will be deemed invalid.
  • Your claim will not be approved if you’re riding without a valid licence.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

‘Insurance is the subject matter of solicitation.’ For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘

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