Be the owner of Two-wheeler in India gives you a sense of freedom- The delight of gliding through traffic, taking shortcuts, and arrive your destination quickly. But with this convenience also comes responsibility. Every rider must protect not just themselves but also others on the road. That’s why having bike insurance is mandatory under the Motor Vehicles (Amendment) Act. 2019
However, many riders settle for a Third-Party Only Policy because it’s cheaper and legally sufficient. But here’s the catch — it protects others, not you.
If your bike gets damaged, stolen, or catches fire, you get nothing.
That’s where a Two-Wheeler Package Policy (also called Comprehensive Policy) makes all the difference. It gives you complete protection — for your bike, for yourself, and for third parties too.
Let’s understand why a Package Policy is a smart choice for every bike owner.
1. You Get Coverage for Your Own Bike Too
The biggest limitation of a third-party policy is that it only covers damage to others’ property or life caused by your bike. It doesn’t help you if your own bike is damaged in an accident.
A Package Policy, on the other hand, gives you Own Damage (OD) cover.
That means if your bike meets with an accident, slips on a wet road, or gets damaged due to fire or vandalism — the insurer pays for the repairs or replacement.
Imagine you accidentally skid your bike and break the headlight and body panel. A third-party policy gives you nothing, while a Package Policy will cover your repair bill.
This one benefit alone often saves riders from spending thousands out of pocket.
2. Protection Against Theft and Fire
Two-wheeler owners, biggest concern is theft, mostly in crowded city like Delhi where bikes are parked in open areas. unfortunately, if your bike gets stolen a third-party-only policy doesn’t pay as you a single rupee.
With a Package Policy, you’re covered against theft.
If suddenly your bike gets missing even with safeguard, the insurer compensates you current market value of your two-wheeler based on the Insured Declared Value (IDV).
Not only in case of theft, furthermore if your bike catches fire because of electrical fault or an external cause like a short circuit or explosion, this cover under your package policy to.
So, instead of worrying every night about where you park your bike, you can sleep peacefully knowing your vehicle is financially protected.
3. Natural Disaster? You’re Still Covered
Nature is unpredictable. Heavy rains, floods, cyclones, and earthquakes can cause severe damage to vehicles, especially in flood-prone areas like Mumbai, Chennai, or Guwahati.
In such cases, a third-party policy offers no help — you’ll have to bear the entire loss.
A Package Policy, however, includes coverage for natural disasters such as:
- Floods and storms
- Landslides and earthquakes
- Hailstorms and cyclones
- Lightning strikes
So, even if your bike is submerged in rainwater or damaged by falling debris during a storm, you can file a claim and recover your loss.
This is one of the main reasons why a comprehensive policy is not just a good-to-have — it’s a must-have for riders across India.
4. Covers Man-Made Disasters Too
It’s not just nature that can harm your vehicle — sometimes, people can too.
Incidents like riots, vandalism, strikes, or malicious damage can happen without warning, especially in urban or industrial zones.
If your parked bike is scratched, dented, or burned during such events, your third-party insurance can’t help. But your Package Policy will.
Under the “Own Damage” cover of a package policy, you are protected from such man-made disasters.
That means your financial loss is minimized even in unpredictable social or political situations.
This is particularly useful for people who commute long distances daily or park their vehicles in public areas.
5. Add-On Covers Give You Extra Safety
One of the most powerful features of a Package Policy is that you can customize it with various add-ons based on your needs.
These add-ons enhance your coverage and make your policy stronger.
Here are some popular add-ons that make a real difference:
- Zero Depreciation Cover: Ensures you get full claim value for replaced parts without depreciation cuts.
- Roadside Assistance Cover: Helps if your bike breaks down in the middle of the road — includes towing, on-spot repairs, or fuel assistance.
- Engine Protection Cover: Covers engine damage caused by oil leakage or water ingression — common during monsoons.
- Consumables Cover: Includes costs of small items like nuts, bolts, lubricants, and brake oil during a claim.
These small add-ons cost a little extra but can save you a lot of money and stress in the long run.
A third-party policy doesn’t allow any of these benefits.
6. Personal Accident Cover for Rider and Pillion
Accidents can happen anytime, even to the most careful riders. That’s why a Personal Accident (PA) Cover is mandatory for all bike owners.
A Package Policy includes PA cover for the owner-driver, offering financial protection in case of injury, disability, or even death due to a road accident.
The sum insured is usually ₹15 lakh, which ensures your family’s financial stability if something unfortunate happens.
Additionally, you can also add a pillion rider cover, protecting the person sitting behind you.
This is especially important if you often travel with a family member or friend on your bike.
It’s a safety net that extends beyond your vehicle — it protects lives.
7. Better Long-Term Value and Savings
It’s true — the premium of a Package Policy is slightly higher than a third-party-only plan.
But when you look at what it covers, the value is far greater.
Here’s a simple comparison:
| Aspect | Third-Party Only Policy | Two-Wheeler Package Policy |
| Legal Compliance | ✅ Yes | ✅ Yes |
| Own Damage Cover Owner/Driver | ❌ No | ✅ Yes |
| Theft Protection | ❌ No | ✅ Yes |
| Natural Disaster Cover | ❌ No | ✅ Yes |
| Add-Ons Available | ❌ No | ✅ Yes |
| Personal Accident Cover | ✅ Mandatory | ✅ Included |
| Long-Term Cost Savings | ❌ Minimal | ✅ Significant |
| Personal Accident – Pillion | ❌ No | ✅ Yes |
So, while a third-party policy saves you a few hundred rupees a year, a Package Policy can save you tens of thousands in case of damage, theft, or accidents.
In short, it’s not an expense — it’s an investment in your peace of mind.
When Should You Choose a Package Policy?
If you:
- Own a relatively new or expensive two-wheeler
- Live in areas prone to theft, floods, or heavy rains
- Travel frequently or park in public places
- Want complete financial safety for yourself and your vehicle
Then a Package Policy is definitely the smarter choice.
It’s designed for riders who value both protection and convenience.
Real-Life Example: Why It Matters
Let’s take an example.
Rahul bought a new bike worth ₹1.5 lakh. To save some money, he went for a third-party-only policy.
A few months later, his bike got damaged in a heavy rainstorm — water entered the engine and caused a breakdown.
Repair cost: ₹30,000.
Insurance claim: ₹0 (because third-party doesn’t cover own damage).
Now, imagine if Rahul had chosen a Package Policy with Engine Protection add-on.
He’d have paid just ₹1000–₹1500 more in premium and saved the entire ₹30,000.
This is the kind of difference that shows why being fully covered is always smarter than being just compliant.
Conclusion
When it comes to protecting your two-wheeler, a Third-Party Only Policy might meet legal needs, but not your real-life needs.
A Two-Wheeler Package Policy gives you all-around safety — covering your bike, your life, and even unforeseen situations like theft, fire, or natural disasters.
It’s like wearing a helmet — not because the law says so, but because you value your safety.
So next time your policy is due for renewal, choose comprehensive protection over minimum compliance.
Because your bike deserves more — and so do you.
Getting insured by connecting with RiskBirbal expert advisor and get fully covered — legally and financially.