There are two types of Two Wheeler Insurance:
Comprehensive Two Wheeler Insurance provides cover to the vehicle, the owner-driver and damages to third parties. It also provides life cover to the owner in accident cases whose coverage vary from insurer to insurer.
Its premiums is comparatively higher than that of third party two wheeler insurance. It is considered a good option for new two wheelers and two wheelers which are not more than 5 years old.
The main benefit of getting a comprehensive insurance cover is that it not only secures the third party financially against accidental damage or death caused by the insured two wheeler but it also financially protects the insured tow wheeler. This facility is not available in case of third party insurance.
Third party two wheeler insurance only covers the damages caused to a third party. Third Party Two Wheeler Insurance provides protection against legal liability due to accidental damages resulting in the permanent injury or death of a person and damage caused to the surrounding property. Here, third party refers to people who are not your family members or property you don't own. As per the law, an owner should cover his/her two wheeler with at least third party insurance at all times.
This policy does not cover the insured vehicle or any damage/loss sustained by it. It can be availed at a lesser premium. It is considered a good option for two wheelers which are more than 5 years old.
Please note that the third party insurance cover for new two wheelers is mandatory for a period of five years.