Which Insurance Policy Is Best For Two-wheelers? 

As per the Motor Vehicles Act of 1988, two-wheeler insurance is mandatory for all bikes and scooters in India. Besides being a legal requirement, bike insurance offers financial protection during a road accident.

Apart from paying for third-party liabilities, two-wheeler insurance policies offer an array of other benefits like coverage for damages/loss to own vehicle, personal accident cover, roadside repair and assistance service, cashless repairs at authorised garages and more. 

Finding the best two-wheeler insurance from the tons of policies available on the market can be an overwhelming task, especially when you're not familiar with the choices available. Here, in this guide, we simplify this task and help you make an informed choice that meets your exact requirements. 

First, let's understand the Types of Two-Wheeler Insurance in India

Bike insurance is of two basic categories:

1. Third-party or liability-only policy
2. Comprehensive cover 

Let's take a closer look at both these policy types.

Third-Party or Liability Only Insurance Policy 

As per the Motor Vehicles Act, all two-wheelers must be insured with at least basic third-party insurance. It offers you financial coverage against injury to a third-party, their vehicle/property/other assets in an accident. 

Generally, if you meet with a road accident, you face legal consequences, if the Special Tribunal Court passes judgement against you. Third-Party liability insurance protects you from the expenses that occur as a result of legalities. Your insurer will pay the amount decided by the court, subject to certain limitations. 

Besides third-party liabilities, it also offers personal accident cover. The insurer would pay a specific sum to dependents if one passes away, unfortunately, in a road accident while riding a two-wheeler.

However, note that third-party insurance does not offer coverage for the damages/losses incurred by your vehicle during an accident. For that, you need a comprehensive two-wheeler plan. 

Comprehensive Two-Wheeler Policy 

As the name implies, a comprehensive two-wheeler insurance policy offers extended coverage. It includes the coverage provided by third-party insurance (third party liability + personal accident cover) as well as own damage cover. 

With a comprehensive plan, your vehicle enjoys 360-degree protection. The insurer covers the cost of damages/repairs/loss of your bike due to accidents and other natural and man-made calamities like storms, earthquakes, theft, riots, etc. Additionally, comprehensive two-wheeler policies offer several other features that are missing from third-party liability-only insurance. 

Here's a quick run-through of the highlights of a comprehensive plan:

Availability of add-on covers to customise your coverage-

Comprehensive plans offer several add-on covers that can be purchased by the policyholder by paying an extra premium. These are optional covers that extend the coverage of your policy. You can choose one or more add-on covers based on your requirements. Some of the popular add-on covers include: 

• Zero-depreciation add-on cover
• Roadside assistance 
• Passenger cover 
• Medical cover 
• Accessories cover

NCB Discounts on Premium-

Consider this as a reward for your excellent driving skills. If you don't make any claims the previous year, the insurer offers you an NCB (No claim Bonus) on subsequent premium renewal. Note that the NCB is cumulative and keeps on increasing (up to a maximum of 50% discount on premium) for every consecutive year that you don't make a claim.

Differences between Third-Party Liabilities Only Insurance vs Comprehensive Two-Wheeler Policy

Features	Third-Party Liability Only Insurance	Comprehensive Two-Wheeler Policy
Coverage	Damage/losses to third-party property Death/disability caused to third-party Personal accident coverage up to a pre-defined sum	Coverage offered by third-party liability only insurance + Own vehicle damage due to natural calamities like floods, earthquakes, storms, etc. Own vehicle damage due to man-made calamities like accidents, theft, riots, fire, etc.
Premium	Low premiums (the IRDAI fixes the premiums)	Higher premiums in comparison to TP only policy (the insurers decide the premiums, depending on the features and benefits they offer)
Beneficiary of the Policy	Third-party	Self and third-party, based on the type of claim
Availability of Add-on covers	No	Optional add-on covers can be purchased to extend the coverage
No Claim Bonus	No	Policyholders can get a discount during premium renewal based on their NCB

So, now the big question,

Which is the best online two-wheeler insurance?

Note that both plans are available online, and you can purchase it quickly, with minimal documentation and a few clicks. However, it's essential that you understand that the two types of two-wheeler insurance policies are created to serve different purposes. At first glance, a third-party liability policy may feel like the best two-wheeler policy as it is cheaper and helps you meet the legal requirements. But when it comes to overall coverage, comprehensive two-wheeler insurance is the best policy as compared to third party. However, the safety of your vehicle is also crucial, making a comprehensive plan, a better value policy. Again, it all depends on your personal requirements and your priorities.

The Key Takeaway

If you are looking for an extensive financial protection and security for your vehicle, then a comprehensive plan is hands-down the best two-wheeler insurance policy. Apart from providing coverage for damage repair, theft, personal injuries disability or death, you can choose add-on features. These features include zero depreciation, pillion rider, emergency on the spot assistance, medical assistance, etc.