Is Third-Party Insurance Enough for Your Bike

One of the first and foremost things to do once you purchase a bike is to protect it with a solid insurance plan. The Government of India has made it mandatory for all vehicles on the road to have at least a basic third-party liability policy, as per the Motor Vehicles Act of 1988.

The third-party liability policy protects you and your insured vehicle from any damages or losses caused to a third-party – person or property. Further, it saves you from the legal and financial liabilities involved. However, apart from that, it does not protect the insured from its own damages. This brings us to the question, is third-party insurance enough for your bike? Read further to know more.

Is Third-Party Insurance Enough for Your Bike?

Though the third-party insurance policy meets the requirements of the government for driving on Indian roads, it does not necessarily be enough for your bike. Imagine if you have a brand-new bike and meet with an accident and you have just the third-party insurance in place.

Then, in that case, only the damages or losses suffered by the third-party involved will be covered by the policy. You will have to bear the expenses of damages and losses caused to you and your bike. So, in that case, third-party insurance might not be sufficient to protect you and your bike. But, if you have a bike that is older than 4 or 5 years, third-party insurance will be sufficient.

How to Protect Your Bike with Insurance?

The best way to go about it would be to choose a comprehensive policy. The policy covers both the damages and losses of the first party i.e., you and the third party involved.

Further, it takes care of the liabilities involved and you are also allowed to choose additional benefits in the form of riders like roadside assistance, no-claim bonus, return to invoice, etc., at an additional cost. But, the price and premium of the policy are significantly higher when compared to the basic third-party policy.

If the comprehensive policy does not fit your budget, you can always get the basic third-party policy along with the personal accident (PA) cover. The PA cover ensures your safety and protects you from any bodily harm or other physical injuries. It provides the insured with sufficient compensation, in case of a serious injury like loss of limb or eye. The policy also compensates the nominee or the insured’s family, in case of the unfortunate death of the insured.

If you have just learned how to drive, it is better to have a stand-alone own damage (OD) policy too. The OD cover protects the insured vehicle and covers all the damages caused to the vehicle. So, that is an option you might want to consider if you want to protect your bike.

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