Third Party or Comprehensive: Which is Better for Two Wheeler

Third-Party and comprehensive Insurance

Two-wheeler is a common mode of transport in India. The huge Indian population is riding a two-wheeler. This is the general confusion among many riders that which insurance is better. Should you purchase third-party insurance or comprehensive two-wheeler insurance?

In India third party insurance mandatory for the two-wheeler. This is the minimum insurance coverage you need to purchase. But if you want to protect your bike also then a comprehensive policy is a better option. You can add some add on cover also.

In this topic, I will explain about the third party and comprehensive two-wheeler policy in detail. Possible you will be able to get maximum knowledge and you will be able to decide which one is better for you.

What is Third Party (TP) Insurance?

During riding your bike, it is possible that you hit any third person on the road. You have the probability to damage any third-party property also. In both the case you get some financial obligations and or legal obligation as well.

Third-party two-wheeler insurance is the policy which protects you against the third-party damages and you can file a claim for the same

If you get any financial or legal obligation from third-party then it may be very stressful and time consuming for you. But if you have third-party insurance then you will be protected from these-problem and you will be stress-free. Your insurance company will pay the claim.

Benefits of Third Party Two Wheeler Insurance

Third-party insurance is also called liability two-wheeler insurance. It has mainly benefits of property damage, third party death, and disability. Following benefits are covered under third-party insurance of two-wheeler insurance:

Third party property damage:

If you damage any third-party property in your bike accident then it is covered in your policy. Company will give claim up to 1 lac rupees depending on property damages.

Death, Disability or Physical Injury to Third party:

Death or permanent total disability of the third person is covered under this policy. if there is any physical injury to a third party then it can be claimed in the policy.

Owner driver:

Owner driver is also covered under third party insurance. Now personal accident cover of Rs. 15 lacs is mandatory and inclusive in a two-wheeler insurance policy. However, if you have a personal accident cover in another vehicle in your name then you can exclude this cover.

Why People Buy Only Third Party Insurance?

There are multiple reasons to buy only TP insurance. Here are some of the here reason why people chose third-party insurance:

Easy Buying Process and No Inspection:

The buying process is very easy and you can take this policy online or through agents very easily. Even if your insurance policy is expired then also there is no need for any vehicle inspection.

Low Premium:

The most important point of purchasing only third-party policy is low premium. Most of the people buy this policy because its premium is very low and they purchase it due to mandatory law only.

No Financial Obligation:

By having this policy, you are protected from third party obligation if there is third party damage from your bike.

Drawbacks of Third Party Insurance

Third-party insurance has some drawbacks also. This policy is not sufficient in nature because it only covers third-party. What about the damage to your bike? Here are some drawbacks of TP policy:

No Own Damage Cover

Third-party insurance does not have any coverage against a claim arising out due to damage in your bike. You will not get any claim if your bike is damaged in an accident because you have not covered it in your policy.

No Theft Cover

What about if your two-wheeler is stolen? You will not get any claim because this is also not covered in third party insurance.

No NCB Benefits

Insurance companies provide you reward of no claim bonus on each claim-free year. In the third-party policy you will not get any no claim bonus even you have claim-free years. No claim bonus is available in only a comprehensive insurance policy.

No Add On Cover

You don’t have any own damage cover in third party policy that’s why you will not be able to buy any add on cover in your two-wheeler insurance policy. Add on cover available only in comprehensive policy.

What is Comprehensive Two Wheeler Insurance?

Comprehensive two-wheeler insurance policy has both the coverage – third party and own damage as well. Along with a third party, it covers damage to your vehicle and theft also. In India it is better to have a comprehensive insurance policy because it has more benefits than only third-party insurance.

Comprehensive insurance has following benefits:

Own Damage Loss – damage to insured vehicle:

It covers any accidental damage to your two-wheeler. Damage may be due to natural calamities or man-made calamities etc.

Theft Cover:

Comprehensive insurance policy cover theft of your vehicle. However, you can’t cover the theft claims in third-party insurance.

Add on Cover Benefits:

Basic comprehensive policy does not have maximum coverage. So, you can add some good add on cover like zero depreciation, consumable cover, no claim bonus protection covers etc. You can maximize coverage by adding some add on.

Third Party Cover:

This insurance policy covers third-party also. Death, permanent disability or physical injury and property damage of a third party is covered.

Owner Driver:

You must have a personal accident cover of Rs.15 lacs. You must have this cover because the accident of the two-wheeler in India is very high.

NCB Benefits:

You get no claim bonus rewards on every claim-free year. You can get up to 50% NCB if you don’t have any claim till five consecutive years.

Why Comprehensive Policy is Better than Third Party?

In my opinion, a comprehensive two-wheeler insurance policy is much better than only third-party insurance. It covers the third party and your vehicle also.

If will compare properly then you will find that there is not much difference in the premium of third-party and comprehensive policy.

It is always affordable in case of two-wheeler insurance. In Comprehensive policy you protect your vehicle and you can have other benefits like no claim bonus, add on covers etc also. It provides you maximum coverage.

Suppose your bike is damaged in an accident and you have only third-party insurance. Now what? You will have to repair your bike from your own pocket.

But in case you have a comprehensive policy then you don’t have financial stress because your bike is covered under the policy.


Sometimes buying only third-party insurance may be a better decision for you. If you have multiple vehicles and you are not using your two-wheeler on a regular basis. You ride it very rare then you can select only third-party insurance in comparison to comprehensive.

Second case if your bike is very old and it has very low insurance declared value then also you can prefer only third-party insurance.

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