Got a new bike or a scooter? That’s great! But wait! Did you get the two wheeler insurance for that? If not, you should get it right now. It is not only essential but is also mandatory to buy an insurance policy for your new bike or a scooter.
It is understandable that some might get confused while buying insurance. As there are two basic insurance plans to choose from, namely:
- 1st Party Insurance
- Third-Party Insurance
It is pretty obvious for users to question, what is 1st party insurance for bike or third-party insurance. If you are one of those users, then this article is for you. Keep reading to explore more!
What is 1st party insurance for bike?
First-party insurance is a policy that a person purchases directly from an insurer or a firm. It is also known as the comprehensive two wheeler insurance
policy. The best thing about the first party policy is that it provides you cover against almost everything. Whether your bike gets damaged in an accident or in a natural disaster, you will surely benefit from the first-party insurance you have.
Here are some crucial elements of a first-party policy:
- Own damage cover: Any damage that happened to you or your vehicle will be covered under this.
- Third-party liability: If in an accident, any damage happens to the third party because of you, it will also be covered in the comprehensive policy.
- Personal Accident Cover: The first party insurance providers also have a PA (personal accident) cover feature in the policy. The insured gets up to Rs 15 lakhs if he or she suffers severe injuries in the accident.
Other than these, you can also include add-ons in your policy such as cover for the pillion, zero depreciation, roadside assistance, and return to the invoice. The only thing that might pinch you about the first party policy or comprehensive policy is the premium. The premium of this type of policy is high, and so is the compensation that you get.
Some other aspects that are covered under the comprehensive cover:
- Damage from fire
- Damage from flooding
Is a third party insurance cover better than the first party cover?
Before moving on to the answer to this question, let us study the two wheeler insurance third party
Third-party insurance is a cover that offers you compensation for the damage done to the third party in an accident. If your bike gets damaged in an accident, then the other party would pay for that, provided they have a TP (third party) cover.
The third-party insurance does not pay for any damage to your bike. However, if you have included the PA cover with your TP cover, you can get compensation if you face any injuries.
Coming to the main question, Is a third party insurance cover better than the first party cover?
It is beneficial only for old vehicles that have less IDV in insurance
. If you have an old bike that you drive very often, you can get a TP cover for that. The premium will be less. However, if your bike is new and has a high IDV, it is best to opt for a first-party cover.
Can my first-party insurance claim get rejected?
Yes, your first-party insurance claim can get rejected in certain scenarios like:
- If the driver of the vehicle is driving under the influence of drugs.
- Your claim can also get rejected if the vehicle’s driver is driving without the driver’s license.
- If you are using your private vehicle for commercial purposes or for purposes like racing and stunts.
- If you are claiming the cover after the policy has expired.
- If you are claiming for an incident that is not on your policy.
How can you claim the first party insurance?
As you are well aware of what is 1st party insurance for bike, it is time to find out how to claim the 1st party cover in case some mishap occurs.
Here are the steps:
- If your bike is damaged in an accident or in a natural disaster, inform the insurer about that first and also file an FIR.
- Once the insurer is informed, a surveyor will come to inspect the damages done to the bike.
- Post-inspection; the insurer will start the repair work of the bike. If you want to get the repair work done as per your choice, you need to pay the charges from your pocket that will be reimbursed afterwards by the insurer up to a fixed limit. In case you choose the repair shop chosen by the insurer, you don’t have to pay any charges. The insurer will take care of it.
- Is first-party insurance mandatory?
As per the Motor Vehicles Act, a person must have at least a third-party two-wheeler insurance for their vehicle. However, it is not necessary to get first-party insurance. If you have a new bike though, it is best to get one.
- How much will be the insurance premium of my bike?
Although multiple factors determine the premium amount, if we have to arrive at a particular range, it will be based on the bike’s engine capacity. The third-party insurance premium can vary between Rs 450 - Rs 2400 based on the engine’s CC.