Learn about the differences between own-damage and third-party two-wheeler insurance. Own-damage covers your vehicle, while third-party caters to others. Consider your requirements and finances to select the right policy.
When it comes to insuring your two-wheeler, there are two main types of insurance policies to choose from: own-damage insurance and third-party insurance. While both provide coverage for your vehicle, they differ in terms of what is covered and who is responsible for paying for damages. In this article, we will explore the differences between own-damage and third-party insurance for two-wheelers.
Own-Damage Insurance
Own-damage insurance, also known as comprehensive insurance, is a type of insurance policy that covers damages to your own vehicle. This includes damages caused by accidents, natural disasters, theft, and vandalism. It also covers the cost of repairs or replacement of your vehicle in case of a total loss.
One of the main advantages of own-damage insurance is that it provides coverage for both you and your vehicle. This means that if you are at fault for an accident, your own-damage insurance will cover the cost of repairs to your vehicle. It also provides coverage for damages caused by natural disasters, such as floods or earthquakes, which are not covered by third-party insurance.
Third-Party Insurance
Third-party insurance, also known as liability insurance, is a type of insurance policy that covers damages to a third party's vehicle or property. This includes damages caused by accidents where you are at fault. Third-party insurance does not provide coverage for damages to your own vehicle.
One of the main advantages of third-party insurance is that it is more affordable than own-damage insurance. This is because it only covers damages to a third party's vehicle or property, and not your own. However, it is important to note that if you are at fault for an accident, you will be responsible for paying for the damages to your own vehicle.
Difference between Own-Damage vs. Third-Party Insurance for Two Wheeler
| Parameter | Third Party | Own-damage |
|---|---|---|
| Legal liability | This type of insurance is mandatory as per the Motor Vehicles Act, 1988 | This type of insurance is optional, depending on the vehicle owner and his requirements |
| Meaning | Provides protection against damages caused to third party person or property | Provides protection against damages caused to your own bike |
| Add-ons | Cannot be purchased with this type of insurance | You can enhance coverage by opting for riders like roadside assistance, return to invoice cover, zero depreciation, engine protection and more |
| Cost | The premium for this type of insurance is decided by the IRDA and is less expensive than own damage cover. | Premium is decided by the insurance company and depends on the bike's make and model, insured declared value, engine capacity, etc. |
| Suitability | Coverage is limited | Wider coverage |
Own-Damage Insurance vs. Third-Party Insurance
The main difference between own-damage insurance and third-party insurance is what is covered. Own-damage insurance provides coverage for damages to your own vehicle, while third-party insurance only covers damages to a third party's vehicle or property. Additionally, own-damage insurance is more expensive than third-party insurance, but it provides more comprehensive coverage. Another important difference is who is responsible for paying for damages. With own-damage insurance, the insurance company will cover the cost of repairs or replacement of your vehicle. However, with third-party insurance, you will be responsible for paying for damages to your own vehicle if you are at fault for an accident.
Conclusion
In conclusion, own-damage insurance and third-party insurance are two different types of insurance policies for two-wheelers. Own-damage insurance provides coverage for damages to your own vehicle, while third-party insurance only covers damages to a third party's vehicle or property. It is important to carefully consider your needs and budget when choosing between these two types of insurance.
Also Read: Types of Bike Insurance Plans to Consider in India
