Is Third-Party Insurance Enough For Bikes?

by SMCIB on Tuesday, 07 November 2023

Is Third-Party Insurance Enough For Bikes?

Bike riders are directly exposed to the external environment, making them more susceptible to direct impacts during accidents. Given the limited protection offered by bikes, it becomes all the more crucial to prepare for the worst-case scenario.  One way to protect yourself and your bike is by purchasing two-wheeler insurance.

A third-party insurance policy is mandatory by law, but it only covers damages caused to others, leaving you and your bike vulnerable to accidents, theft, and other damages. Accidents can happen at any time, and being adequately insured can make all the difference.

But, does a third-party insurance policy provide you with enough coverage? Let's find out.


Is Third-Party Coverage Enough For Bikes?

To gain a better understanding of the question, it is essential to first know what third-party insurance is.

Owning a bike is not just about the happy moments when you ride it; but also, about ensuring that you and your vehicle are protected in case of an accident. This is why having bike insurance is essential. In India, having at least a third-party insurance policy is mandatory by law.

Under third-party insurance, if you are involved in an accident and you injure someone else or damage their property, your insurance company will cover the expenses. However, it is important to note that this policy doesn't cover any damages caused to your bike or any injuries you may suffer.

For example, say you are riding your bike, and you accidentally hit someone's car. It causes a huge dent in their door. In this scenario, your third-party insurance policy will cover the damages caused to the other car. But what about your bike? It might have suffered some damages too, and unfortunately, your third-party policy will not cover those expenses.

This means that to protect yourself and your bike against all kinds of damage, you will need an insurance policy that offers all-around protection.


Other Types Of Bike Insurance Policies

To ensure that any damages caused to you or your bike are covered, you have two options to choose from –

1️⃣ Stand-Alone Own Damage Policy
One way to ensure that your bike is covered against damages, theft, or total loss is by purchasing a stand-alone own damage policy. This policy will provide you with comprehensive coverage for your bike. Additionally, you can enhance your coverage by adding extra add-ons to this policy. However, you should keep in mind that you can purchase this policy only if you possess an active third-party policy.

For example, Mohit is an avid bike rider who loves to go on long rides. One day, while driving on a busy street, he accidentally hits a pole and damages his bike. The accident causes significant damage to the body and engine of the bike. As Mohit has purchased a stand-alone own damage policy with an IDV of Rs. 2 lakhs, it covers the expenses incurred in repairing his bike.

3️⃣ Comprehensive Policy
This is a complete package for your bike insurance needs. It offers coverage for any third-party liability and damage suffered by you and your vehicle. This means that bike owners do not have to purchase multiple policies to ensure comprehensive coverage. With this policy, you can also customize your coverage by adding extra benefits like zero-depreciation, engine protector, roadside assistance cover, consumable protection cover, etc. This policy is more expensive than others due to the comprehensive coverage it provides against a wide range of potential risks and liabilities.

For example, Shahid is riding his bike when he crashes into another vehicle parked on the road. The collision causes significant damage to the front portion of his bike and the rear part of the parked vehicle. Since Shahid owns a comprehensive insurance policy, the insurer will cover the cost of repairing the damages to his bike, as well as the damages caused to the third party’s vehicle.


To conclude,

While having third-party insurance for your bike is mandatory by law, it may not provide you with sufficient coverage in case of an accident. This is why we recommend always opting for a comprehensive policy that covers your bike against damages, theft, and third-party liabilities. With a comprehensive policy, you can be assured that you are protected against any unforeseen expenses that may arise due to unfortunate circumstances.

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