In India, it’s mandatory for all two-wheeler riders to hold a valid insurance policy. Let’s take a look at the three main forms of bike insurance in India.
Third-party Liability Insurance - As the name implies, third-party insurance only covers the damages caused to third-party vehicles and people. It does not cover any loss or damage to one’s vehicle or the co-passenger. Generally, people choose this option as it is the cheapest option and it is mandatory for all riders to hold at least third-party insurance.
Comprehensive Insurance - Comprehensive insurance covers the damages caused to third-parties as well as own vehicle in a road accident. It also covers damages caused to the vehicle due to burglary, natural disasters like floods, storms, man-made disasters like fire, riots and terrorism. However, note that comprehensive insurance cover does not apply if the rider is found to be under the consumption of alcohol or any other form of drug abuse.
Own damage bike Insurance - It covers the damages caused to your vehicle due to accidents like fire, flood, earthquake, burglary, riots and terrorism, etc.However, note that it does not cover damages caused to third-party vehicles, property and other people.