You have the option to purchase third-party liability insurance or your damage insurance. In this situation, having financial security is crucial. Indians who own vehicles must receive financial assistance. And it is a perk of getting bike insurance protection. The Motor Vehicles Act 1988 mandates insurance coverage for two-wheelers and cars operating within the Indian Territory. Without insurance, driving a car on the road is illegal. Instead, the penalties for breaking the law will be your responsibility. Having bike insurance is, therefore, essential. Even more important is understanding OD and TP in bike insurance.
What Do OD And TP Mean In Bike Insurance?
Own Damage (OD): What Is It?
Own damage bike insurance guards you against theft, fire, and other losses and damages to your bike. With your own damage insurance, you can cover replacement and repair costs. Losses resulting from mishaps, theft, deliberate acts, and natural and artificial disasters are all covered by OD coverage. There are insurance companies that provide coverage for your bike’s own damage. You can buy your damage coverage separately or as part of a larger policy. New insurance rates are considered when calculating the bike’s value decline.
Advantages Of Own Damage (OD) Coverage?
Below is a list of the benefits of bike insurance for your damage.
- Coverage for auto damage resulting from accidents
- Insurance against theft and natural or artificial disasters
- Fire damage
- The decision to add extra coverage to the insurance
Third Party (TP): What Is It?
Third-party bike insurance is necessary for your car to be safe and secure. The Motor Vehicle Act of 1988 mandates purchasing third-party liability insurance for the required use. This insurance protects you if your vehicle results in passing away, serious injury, damage to another person’s property, or loss to a third party’s vehicle. In this case, you must deal with the circumstances. It would be simpler if you already have third-party liability insurance. If you still need to, you’ll have to use your own funds to cover the loss expense. Because you are the one who damages other people’s cars, you should be aware that third-party insurance does not cover loss or damage to your own vehicle. To be reimbursed for your car, you must purchase damage insurance coverage. It does not manage claims for damaged or stolen vehicles, either.
Advantages Of Third-Party (TP) Insurance?
The benefits are detailed below:
- Damage to third parties’ property
- Coverage for third-party services provided
- Coverage for your financial obligations if you unintentionally hurt someone or damage their property.
You should buy both Third-party Liability insurance and your Own Damage insurance if you want comprehensive or broad coverage. This will provide comprehensive protection against almost all losses related to vehicle operation. Because the own damage bike insurance policy includes coverage against damage and theft from natural calamities, people living in areas prone to theft or flooding can also opt for this insurance.
Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.