What are 1st & 3rd Parties in Two-Wheeler Insurance?

Paid the token amount for your new bike, congratulations! Now the next step is choosing a two wheeler insurance policy. As confusing it gets in picking your favourite bike, similar is the experience of selecting the right bike insurance policy. With a plethora of options, it can be perplexing as to what shall be the best for you. Between this selection, you are posed with a crucial choice of opting for first-party coverage and third party coverage. To deduce, understanding how a first-party insurance for two wheeler differs from a third party policy is necessary. Let us look at it.

Introduction of First-Party Two-Wheeler Insurance

First-party insurance for two wheeler is a type of insurance plan that offers a complete protection to your bike. For this reason, it is popularly referred to a comprehensive policy. As the name suggests, the policy offers coverage for first-party liabilities i.e. to you, the policyholder. Any damage to your bike is insured under this first-party insurance for two wheeler. The compensation under this coverage is directly paid to you by the insurer. Here are some examples of cases covered under a first-party insurance for two wheeler:

1. Damage due to fire
2. Natural calamities
3. Theft
4. Man-made perils

However, there are still a few situations that are excluded from first-party coverage which include routine wear and tear, depreciation of your bike, any electrical or mechanical breakdown, damages to consumable spares like tyres, tubes, damages when the driver did not possess a valid driving license or was under the influence of alcohol or other intoxicating substance.

Benefits of First-Party Bike Insurance

First-party two-wheeler insurance online offers numerous benefits that ensure comprehensive protection and peace of mind. Some of these benefits include:

Comprehensive Coverage:

It covers various damages, from natural calamities to theft and accidents.

Personal Accident Cover:

It often includes personal accident cover for the owner-driver, ensuring medical expenses are taken care of.

Customizable Add-ons:

You can enhance your policy with add-ons like zero depreciation cover, roadside assistance, and engine protection.

Cashless Repairs:

Enjoy cashless repair services at network garages.

Financial Security:

Protects you from financial losses arising from damages to your vehicle.

Third party insurance for two wheelers

On the contrary to a first-party cover, third party bike insurance has a limited coverage. It only protects you, the policyholder, against the liabilities arising due to an accident to a person or damages to property. Since it is to ensure protection of a third party outside the contract of insurance, it is called third party two wheeler insurance cover. Now that you know how first-party insurance differs from third party cover, let us understand why it is essential to purchase a first-party two wheeler insurance online.

How do you apply for First-Party Bike Insurance Online?

Applying for first-party two-wheeler insurance online is a simple and convenient process. Follow these steps to secure your policy:

Visit the insurer's website:

Go to the insurance provider's website.

Choose Your Plan:

Select the first-party insurance plan that suits your needs.

Fill in Details:

Enter your bike details, personal information, and any previous policy details.

Select Add-ons:

Opt for any additional coverages you might need.

Make Payment:

Complete the payment process online.

Policy Issuance:

Receive your policy document via email instantly.

Is first party insurance for two wheelers mandatory?

The Motor Vehicles Act of 1988 makes it compulsory for all bike owners to have at least third party insurance cover. While it is not compulsory to invest in a first-party policy, it does benefit you by providing an all-round coverage. Accidents are unfortunate events that not only cause injury or damages to others, but also to you and your vehicle. First-party bike insurance policy is that which offers coverage for both the owner as well as third party. Also, natural calamities that cause significant damage to life also have disastrous consequences on vehicles. First-party insurance cover helps you safeguard your vehicles and prevent a financial loss. Lastly, when buying a first-party vehicle insurance online, it can be customised to include additional coverage options that cover depreciation, offer roadside assistance, engine breakdown cover, and more. These benefits otherwise are not available for third party insurance plans. To conclude, it is a smart choice to opt for a first-party cover as it helps avoid third party liabilities as well as reducing financial losses from damages to your vehicle. However, when you select one, carefully analyse your requirements and select after comparing the available options so that it offers benefits that are tangible in the long run.

How to Make a Claim for First-Party Bike Insurance?

In case of an unfortunate event, claiming first-party bike insurance involves a few straightforward steps:

Inform the Insurer:

Notify your insurance company about the incident immediately.

Submit Claim Form:

Fill and submit the claim form and the required documents.

Inspection:

The insurer will send a surveyor to inspect the damage.

Repair and Settlement:

Get your bike repaired at a network garage, and the insurer will settle the bill directly.

How to Choose the Right First-Party Insurance for Your Bike?

Selecting the right first-party insurance for your bike involves considering various factors:

Coverage Options:

Ensure the policy covers many perils, including theft, fire, and natural disasters.

Add-ons:

Look for useful add-ons like zero depreciation, engine protection, and roadside assistance.

Claim Process:

Choose an insurer with a hassle-free and quick claim process.

Premium Cost:

Compare insurance premiums to find an affordable yet comprehensive plan.

Customer Reviews:

Check customer feedback and reviews for insights into the insurer's service quality.

Importance of Buying First-Party Insurance for Your Bike

Securing first-party two-wheeler insurance online is essential to protect your bike comprehensively against unforeseen risks.Investing in first-party two-wheeler insurance online is crucial for several reasons:

Comprehensive Protection:

Offers extensive coverage against a variety of risks.

Peace of Mind:

Ensures financial protection, reducing stress in case of accidents or theft.

Legal Compliance:

While third-party insurance is mandatory, first-party insurance provides additional security.

Resale Value:

Maintains the value of your bike by covering repair costs, thereby keeping it in good condition.

Customizable Coverage:

Allows you to tailor the policy to meet your specific needs with various add-ons. Choosing first-party insurance not only fulfills legal requirements but also ensures your bike is protected, providing peace of mind and maintaining its value over time.

First-Party vs Third-Party Insurance

Aspect	First-Party Insurance	Third-Party Insurance
Coverage	Comprehensive (own damage, theft, fire, calamities)	Limited (third-party damage or injury)
Premium	Higher	Lower
Legal Requirement	Optional	Mandatory
Add-ons Availability	Yes	No
Financial Protection	High	Low

FAQs

What does 1st party insurance cover for bikes? 

First-party insurance covers damages to your bike caused by accidents, fire, theft, natural calamities, and man-made perils.

Can I claim insurance benefits for damages caused by accidents? 

Yes, first-party insurance provides coverage for damages to your bike resulting from accidents.

Does 1st party insurance cover theft of my bike? 

Yes, first-party insurance includes coverage for theft, ensuring you are compensated if your bike is stolen.

What natural disasters are covered by 1st party insurance for bikes? 

First-party insurance covers natural disasters such as floods, earthquakes, storms, and cyclones.

Does 1st party insurance cover damages caused by fire or explosion? 

Yes, damages caused by fire or explosion are covered under first-party insurance.

Is 1st party insurance only for new bikes? 

No, first-party insurance is available for both new and used bikes, providing comprehensive coverage regardless of the bike’s age. *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. Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions. Claims are subject to terms and conditions set forth under the motor insurance policy.