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What Makes Comprehensive Bike Insurance the Sensible Choice?

By Juhi Walia
09 September 2022, 12:30 PM

India is a massive market for two-wheelers. They are an excellent choice for transport considering the weather, roads and traffic conditions. However, riding a bike also comes with its share of risks, more than any other form of transportation. Unexpected accidents can harm the rider, the pillion rider, and the two-wheeler in various ways, from mild to severe, which may also result in increased financial hardship. Therefore, purchasing two-wheeler insurance coverage is a prudent choice to make when you decide to buy a bike.

 The Indian Motor Vehicles Act, 1988 has made it mandatory for all vehicle owners to have an insurance policy in place. According to data from India’s Insurance Information Bureau (IIIB), most scooters and motorbikes and nearly 60% of all vehicles on Indian roads lack insurance. One of the leading causes is that after the first year, most two-wheelers don’t get their insurance renewed.

In India, the two primary categories under which insurance policies fall are comprehensive bike insurance and third-party liability insurance. Although third-party bike insurance is required by law in India, it only offers limited protection, as the name implies, it only covers damage to third parties (people, vehicles, or property). Hence, choosing comprehensive insurance is the better course of action. It provides more comprehensive coverage, which includes third-party liability and own damages. 

Given the bad condition of roads in India coupled with increasing incidences of rash driving daily, people have realized the value of a good insurance policy. Accidents can happen anywhere. Apart from physical and emotional trauma, it also causes a dent in your finances as bike repair doesn’t come cheap. The comprehensive policy ensures financial security in case of disability, injuries or death resulting from the accident. 

Let’s find out the difference between both the popular insurance policies

Comprehensive Insurance v/s Third-Party Liability Insurance

Comprehensive InsuranceThird-party Liability Insurance
Not CompulsoryCompulsory
Higher PremiumLower Premium
Offers exhaustive coverageOffers limited coverage
Coverage for the insured’s own bike and third-party liabilities.No coverage for the insured’s bike. Only covers third-party liabilities.
In case of an injury to the insured, medical expenses are taken care of.In case of an injury to the insured, medical expenses have to be paid by the insured.
Comes with add-on coversNo add-on provision

Read more - Third Party v/s Comprehensive Two Wheeler Insurance

Major Benefits Offered by Comprehensive Bike Insurance

Covers Damages Caused Due to Natural Calamities 

Mother Nature’s fury cannot be disputed at any cost. This is precisely why comprehensive insurance considers this and compensates the bike owner for the losses incurred during disasters such as earthquakes, floods, cyclones, storms, etc.

Read more - How to Protect Your Bike from Natural Calamities?

Covers Damages Due to Man-made Calamities

When disasters like riots, fires, explosions, terrorist attacks, strikes, unfortunately takes place, they can cause severe damage to your prized possession, your two wheeler. With comprehensive bike insurance, you can set your worries aside as your policy will cover these aspects and protect you from their financial repercussions. Your insurance provider will compensate you for the loss incurred from such disasters without any trouble!

Read more - The Comprehensive Guide to Making Improvements to Your Bike

 Offers Cover Against Theft of the Vehicle

In the unfortunate event of your two wheeler getting stolen, this plan pays the coverage amount equal to the IDV of your bike. It is advisable that you inform the insurance provider about the same at the earliest possible to ensure a seamless and successful bike insurance claim settlement.

Includes Third-party Liability Cover

The Motor Vehicles Act, 1988 mentions that third-party bike insurance is mandatory. Hence it has been included in the comprehensive insurance package. This means that any damage or loss incurred by the third party will be compensated under this policy. The damage could be to property, vehicle or person. 

Exclusions of Comprehensive Bike Insurance

While this policy certainly offers excellent advantages over its counterpart, let’s also take a look at the exclusions: 

  • Cover will not be offered if there are damages or losses incurred when the policy has already expired or is inactive at the time of the occurrence.
  • Damage resulting from a mechanical or electrical breakdown.
  • Natural wear and tear of the bike.
  • Loss from a mishap incurred while riding the vehicle without a valid driver’s licence, or failing to follow traffic rules.
  • Damage caused when riding under the influence of intoxicating or banned substances.
  • Using the bike for commercial purposes or any other fraudulent purpose.


Having understood the major differences between the two policies, there are no second guesses as to which policy is the wiser choice. Yes, comprehensive bike insurance cover makes more sense as it covers expenses of all damages suffered by the insured vehicle, its owner, and the affected third party. At the same time, the other offers only minimal protection. 

Read more- 6 Key Elements of Your Comprehensive Two-wheeler Insurance Policy Wordings


1. Why is buying comprehensive bike insurance a more thoughtful choice?

Buying comprehensive bike insurance makes more sense as it offers the dual benefit of third-party coverage plus own damage cover. Moreover, you can choose add-ons that will further enhance the scope of your insurance policy.

2. What makes comprehensive bike insurance more expensive than third-party liability policy?

A third-party policy offers only the primary cover, whereas the comprehensive policy, as suggested by its name, offers a gamut of covers, including the third-party liability cover. Plus, on the one hand, where the former covers only the damages caused to the third party, the comprehensive package compensates for the damages caused to the policyholder and their vehicle as well. All these make it more expensive. 

3. What is the criteria of deciding premium rates in case of a comprehensive insurance policy?

The premium rate for comprehensive bike insurance policy is determined by two aspects - third-party component premium and own damage component premium. The insurance company takes the final call on the amount to be charged for own damage component. It can vary from company to company depending on factors such as settlement ratio, service charges and so on. 

4. What add-ons can you buy with a comprehensive bike insurance policy?

These are some of the add-on covers that most bike insurance companies provide: 

  • Passenger cover
  • Consumables cover
  • Zero depreciation cover
  • Engine protector cover
  • Roadside assistance cover
  • No claim bonus protect cover
  • Return to invoice cover

5. While renewing my policy, what if I want to switch from a third-party to a comprehensive policy?

Yes, it is possible to change the type of your bike insurance policy as and when you please. The insurer will thoroughly inspect your vehicle before approving your policy. It would be wise to get all the repairs and damages sorted before it goes for an inspection. 

6. What constitutes fraudulent activity while claiming bike insurance?

 Profiting by raising a false claim from the insurance company is considered fraudulent. 

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