Is third party insurance enough for your two wheeler

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03 Aug 2023

Read about whether third-party insurance is enough for your two-wheeler or you should opt for comprehensive one.

A lot of people get two-wheeler insurance because it is mandatory by law. However, with the right knowledge, your two-wheeler insurance can offer you much financial security and help your vehicle stay in good condition for a long time.

Most bike owners opt for third-party insurance to meet the compulsion of Indian Motor laws. Third-party insurance definitely offers a level of financial security and fair compensation during an accident without burning a hole in your pocket. But is it enough? Let us find out.

What you need to know about third-party insurance?

Third-party insurance, as the name suggests, protects you from financial loss in case you cause damage to someone (third-party) in an accident. Whatever financial compensation you need to provide to the third party if you damaged them or their vehicle will be covered by your third-party insurance. The final compensation amount may vary depending on several factors, and it may be up to 1 lakh in case of property damage. In case of death or injury to a third party, the compensation amount will be decided by the Motor Accident Claim Tribunal (MACT).

Pros of third-party insurance

If you have third-party two-wheeler insurance, these are the benefits you can expect:

1. Get protected from any legal liabilities.

2. Pay fair compensation in case of injury or death.

3. Bear the cost of any medical treatment.

4. Personal Accident Cover, which is mandatory with a motor insurance policy as per the law, protects you (or your family) in case of death or disability.

Cons of third-party insurance

Third-party insurance does have some drawbacks as well:

1. Does not cover the damage to your bike.

2. It cannot be enhanced with additional covers.

3. No protection against damage during natural calamities, damage from fire, accidents, theft, etc.

What you may need

If you own a two-wheeler and are looking for more enhanced coverage than what is provided by third-party insurance, you may need to get a comprehensive or extensive motor insurance policy. A comprehensive bike insurance plan can offer various additional benefits to provide enhanced financial security. You may think about getting a comprehensive bike plan if:

1. You think you may be more prone to accidents and need protection against third-party damages as well as your own damage.

2. You want to get compensated for minor damages to your bike or protection in cases like thefts or damage during a natural calamity.

3. You wish to get add-ons and avail of additional benefits from your policy.

While third-party insurance is enough for you to abide by the laws and get some financial security during an accident, it does not cover many other benefits. To get enhanced coverage and protection against other damages, a comprehensive two-wheeler insurance plan is the one you need to get.

However, before getting a new plan, you may want to do your research thoroughly about the plan best suited for your preferences. Check the premium, the benefits, add-ons, etc., and then get the policy that will be of benefit to you.

Visit Kotak General Insurance for More Information.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.