Own Damage v/s Third Party Cover Under Bike Insurance

Significance of Bike Insurance

Buying the right two-wheeler insurance plan that fulfills all your needs within a budget is a crucial decision for a bike owner. Hence, you must be careful about the coverage in your insurance policy. It acts as a safety cover against any financial loss and legal liabilities in case of mishaps, such as a road accident.

It is always a wise decision to consider factors like- IDV, model of a bike, engine capacity, age of the bike, and geographical area for buying any type of bike insurance. It is recommended to search, compare, and study various available bike insurance plans online and choose a plan that best suits your requirements.

What is Own-damage Bike Insurance?

An own-damage cover in bike insurance protects your own vehicle against any losses or damages caused due to a mishap. If you are wondering, how long is the own-damage bike insurance valid for, you must know that bike owners in India can buy a standalone own-damage plan of 1 year. This means that this two-wheeler insurance plan covers the insured bike for one year and must be renewed annually for continued coverage. You can also enhance your own-damage policy by opting for add-on covers under it.

Benefits of Own-damage Bike Insurance

• Covers damages caused to your own bike, including unexpected bike repairs or replacement (as per policy's terms).
• Covers losses or damages caused to your bike by natural disasters like floods or earthquakes.
• Provides compensation for losses/damages to your bike caused by man-made calamities like vandalism, theft, riots, etc.
• Provides facility to expand bike protection coverage through add-ons.
• You can purchase it as a stand-alone plan or as a part of the comprehensive bike insurance policy.

What is Third-party Bike Insurance?

According to Motor Vehicle Insurance 1988, third-party bike insurance is mandatory for all two-wheeler owners in India. This policy provides financial protection for the loss or damages caused to a third party by your insured bike in road accidents.

Suppose you are involved in a bike accident and injure a third party. Now, you might end up spending a hefty amount on their treatment. In this case, third-party bike insurance comes to the rescue. It covers the legal and financial expenses for the injury caused to a third party or damage to their property.

Benefits of Third-party Bike Insurance

• Covers damage or loss caused to any third party by your insured two-wheeler.
• Third-party bike insurance covers third-party vehicle or property damages up to ₹1 lakh.
• It covers medical expenses for the third party's bodily injuries. The compensation amount is calculated based on different factors.
• Third-party insurance for bikes and e-bikes also provides financial compensation in the unfortunate case of the third party's death in a road accident.
• By buying third-party bike insurance, you fulfil the legal requirement, failing which leads to financial & legal consequences.

Difference Between Own-damage and Third-party Bike Insurance

Below is a detailed comparison chart showing all the features & benefits of own-damage cover and third-party cover. This information on own-damage vs third-party bike insurance will help you determine which of the two insurances is apt for you per your coverage requirements.

Factors You Should Consider Before Buying a Bike Insurance Policy

• Buying & Claiming Process: One of the major factors you should look at before purchasing a bike insurance policy is the buying & claiming process. You must search for and compare different bike insurance companies online and then decide which one has a hassle-free online buying & claim settlement process.
• Complimentary Services: Always choose an insurance provider that stands out from its competitors by offering you unique service benefits along with the policy. Look for their complimentary services as an added benefit and decide accordingly.
• Claim Settlement Speed & Ratio: A claim settlement ratio of any insurance company will give you an idea about how smooth & successful their claim process will be. Therefore, check the claim settlement ratio of different insurers before buying any type of bike insurance policy.
• Insured Declared Value: IDV is the maximum amount given by an insurance company in a case when your bike is a total loss or stolen. In the case of the total loss, a higher IDV usually means a higher reimbursement amount. Low premiums are attractive, but they may not give you maximum financial benefits. So, it is advisable to check your IDV as well, and not just the premium amount.
• 24x7 Customer Support: Leading bike insurance companies in 2025 are equally well-known for providing unparalleled 24x7 customer support. Therefore, ensure that support from your bike insurer is always available whenever you need it.

Also Read: 5 Common Mistakes to Avoid when Choosing Bike Insurance

Conclusion

To choose the best bike insurance for your two-wheeler, we have shared a comparison chart featuring all the benefits and limitations of both own-damage cover and third-party bike insurance. Evaluate your choices and make an informed decision about buying bike insurance according to your requirements and budget.