First Party Car Insurance: Benefits, Inclusions & Exclusions

Car insurance is an investment that every car owner must make to protect their vehicle against unforeseen events. With the increasing number of cars on the roads in India, it is important to choose the right insurance policy that covers all the possible risks you and your car may face. First-party car insurance, also known as comprehensive car insurance, is one of the most holistic forms of car insurance available in India. It offers wide-ranging protection to a car and its owner. In this article, we will delve into the details of first-party car insurance, including its benefits, inclusions, and exclusions.

What is First-Party Car Insurance?

First-party car insurance is usually considered comprehensive coverage, which is a form of protection, mostly for both vehicle and owner, against various risks. It includes comprehensive safeguards and shielding against unnatural losses like theft, fire, natural disasters, and accidental damages. Moreover, it extends coverage to third-party liabilities, including robbery, loss, and road injury to other users. With multiple features, it ensures peace of mind on the road. Here's a breakdown of its key features:

Benefits of First-Party Car Insurance

Here are a few benefits that first-party car insurance gives you:

1. Comprehensive Protection

First-party car insurance offers complete protection to a car and its owner/driver against a wide range of risks, including theft, fire, natural calamities, and accidental damages.

2. Covers Third-party Liabilities

Car insurance not only covers the damages to your car, but also covers the third-party liabilities, including death or injury to other road users, or damage to their property.

3. Cashless Claim Settlement

Most car insurance companies offer cashless claim settlement, which means that the policyholder can get their car repaired at any of the network garages paying standard deductible.

4. 24/7 Road Assistance

First-party car insurance gives you the added advantage of 24/7 road assistance. This is a useful benefit that helps you in case of breakdowns, flat tires, or other emergencies while on the road. However, you might have to get this benefit as an add-on. Benefits like these are not available to people that only have third-party car insurance.

5. No-claim Bonus

If the policyholder does not make a claim during a policy year, they will earn an NCB benefit that can lower their premium at the time of comprehensive car insurance renewal.

6. Customizable Coverage

Car insurance allows the policyholder to customize their coverage by choosing the add-ons that best suit their needs and budget.

Inclusions of Comprehensive Car Insurance

Here are a few inclusions of car insurance coverage:

1. Own Damage Cover

While third-party car insurance includes only liability coverage, comprehensive car insurance includes own damage cover. This means the policy will cover the repair or replacement of your car in case of damages due to any accident, theft, or natural calamities. You must check with the insurance provider about the extent of your own-damage coverage.

2. Third-party liability cover

Comprehensive car insurance includes third-party liability cover, which covers the legal and financial liabilities that may arise due to an accident involving your car. This cover takes care of the medical expenses of the third-party, as well as compensating them for any damages caused to their property. This is the coverage that you would receive if you bought third-party car insurance. However, with first-party car insurance, you get third-party liability and own-damage coverage.

3. Personal Accident Cover

Comprehensive car insurance includes personal accident cover for the policyholder and passengers in case of an accident. This cover compensates the policyholder and passengers in case of death or disability due to an accident.

Exclusions of Comprehensive Car Insurance

Here are few things and scenarios that first-party car insurance will not cover:

1. Wear and Tear

Car insurance does not cover damages due to normal wear and tear of the car. This includes damages caused due to aging, lack of maintenance, or overuse of the car.

2. Driving under the Influence

Car insurance does not cover accidents that might happen while you are under the influence of alcohol or any other substances. You should know that driving under the influence is a criminal offense in India. Not only will you face a claim rejection, but you also might have to pay heavy fines.

3. Driving without a Valid License

The insurance claim will be rejected if the driver of the car does not have a valid driving license at the time of the accident. It is imperative that the policyholder ensures that the driver of the car at the time of the accident has a valid driving license.

4. Intentional Damages

First-party car insurance does not cover damages that are intentional or self-inflicted. For example, if the policyholder deliberately damages their own car, the insurance company will not cover the costs of repairing or replacing the car.

5. Driving outside the Geographical Area

The insurance company may not cover the damages incurred if the accident happened outside the geographical coverage area specified in the insurance policy. For example, insurance companies in India will cover you anywhere in India. However, if the accident happens during a road trip to a neighbouring country, you will not receive coverage. Also Read: Role Of Anti-Theft Device And Its Impact On Car Insurance Premium

Difference between First-Party and Third-Party Car Insurance

Choosing the right car insurance is very important as it plays an important role in providing security with your finances and legal compliance on the road. Understanding the disparities between first-party and third-party car insurance policies is crucial in making an informed decision. Below are the fundamental differences between these two types of coverage:

How to Buy/Renew First-Party Car Insurance?

If you want to renew your first-party car insurance, the process is easy and straightforward, especially when applying online. Let us look at the step-by-step guide for the same.

1. Go to the official website of Bajaj Allianz and click on the ‘Insurance’ section.
2. Choose the option for first-party car insurance among the offered insurance types.
3. Fill in details such as your car’s model, manufacturer, variant, and city for accurate policy customisation.
4. Select a plan that aligns with your coverage requirements and budget.
5. For renewal, input your current policy and vehicle registration numbers.
6. Evaluate the percentage of the No Claim Bonus applicable for the current year.
7. Opt for additional coverage for your car's accessories or DriveSmart Telematics Services for added benefits.
8. Assess and opt for top-up covers to enhance your policy per your preferences.
9. Ensure accuracy by reviewing your policy, vehicle, and personal information. Update any changes in personal details if necessary.
10. Receive your premium quote and pay through the secure online portal.
11. Once payment is processed, your first-party car insurance is renewed or purchased successfully.

How to File a Claim under First-Party Car Insurance?

To file a claim under first-party car insurance with Bajaj Allianz:

Step 1: Register Your Claim

Contact Bajaj Allianz’s Motor Claim Assistance Number at 1800-209-5858 or use the Motor On The Spot service. You can do the same by calling 1800-266-6416. Alternatively, you can register your claim through Bajaj Allianz’s Caringly Yours App.

Step 2: Provide Details

Share your contact, accident, and vehicle information.

Step 3: Get a Claim Reference

Receive a Claim Reference Number for tracking.

Step 4: Send for Repair

Move your vehicle to a garage to prevent further damage.

Step 5: Survey and Settlement

Submit documents for assessment and opt for Motor OTS service for minor damages. Also Read: The Magic Of Car Anti-Lock Brakes: Why They’re A Game-Changer!

Why Choose First-Party Car Insurance?

First-party car insurance, also known as comprehensive car insurance, offers a wide range of benefits for vehicle owners. Here are the key reasons to choose it:

1. Wide Coverage

Unlike third-party insurance, first-party insurance covers damages to your own vehicle in addition to third-party liabilities. This means you’re financially protected against accidents, theft, natural disasters, and vandalism.

2. Personal Accident Cover

First-party insurance typically includes coverage for the driver and passengers, offering compensation in case of injury or death resulting from an accident.

3. No Financial Burden

It reduces the financial strain in case of damage or loss, as it covers repair costs, medical expenses, and even theft-related claims, subject to policy terms.

4. Additional Benefits

First-party policies often offer add-ons like roadside assistance, engine protection, and zero depreciation cover, making the policy even more comprehensive.

5. Peace of Mind

With a first-party policy, you have extensive coverage, which ensures you're prepared for any unexpected situations, giving you peace of mind while on the road. Choosing first-party insurance helps secure not only your car but also protects you and your passengers, offering a more robust safety net. Also Read: How to Transfer Car Insurance to New Owner?

Conclusion

First-party car insurance, also known as comprehensive car insurance, offers extensive coverage for vehicle owners. It protects against damages to the insured vehicle, theft, fire, and natural disasters while also covering third-party liabilities. Additional benefits like cashless claim settlement, 24/7 roadside assistance, and customizable add-ons make it a well-rounded policy. While it provides financial security, it does not cover intentional damages, wear and tear, or accidents due to illegal activities. This policy is ideal for car owners seeking complete protection and peace of mind.

FAQs

1. Is first-party insurance mandatory?

No, first-party insurance is not mandatory, considering the law, but third-party insurance holds legality and is important under the Motor Vehicles Act of 1988.

2. What does first-party car insurance cover? 

First-party car insurance covers damages to your own vehicle, accidents, theft, fire, vandalism, natural disasters, and more. This insurance can include several issues and incidents, such as accident cover and protection against various risks.

3. What documents do I need to raise a claim under first-party car insurance? 

To raise a claim under first-party car insurance, one must share the insurance policy details, FIR (in case of theft or accident), vehicle registration certificate, driving license, and any other relevant documents related to the claim.

4. Which insurance is the best, first-party insurance or third-party insurance? 

The best insurance depends on an individual’s needs and preferences. First-party insurance also includes comprehensive coverage for your vehicle and personal well-being. Meanwhile, third-party insurance comes with legal requirements and covers coverage for third-party damages in the accident.

5. How can I reduce my first-party car insurance premium? 

There is an option in which you can reduce your first-party car insurance with the premium option by selecting options for higher deductibles, maintaining a good driving record, installing anti-theft devices, and bundling policies, with available discounts, offered by insurance companies, which are mostly based on factors like age, profession, and safety features of your vehicle.

6. What documents do I need to raise a claim under first-party car insurance?

Documents Required for First-Party Car Insurance Claim:

1. Policy document
2. FIR (if applicable)
3. Claim form
4. Car registration certificate (RC)
5. Driver’s license
6. Repair bills & estimates

7. Which insurance is the best, first party insurance or third-party insurance?

First-party insurance offers comprehensive coverage, including own damage, while third-party insurance only covers liabilities. First-party is better for complete protection, while third-party is mandatory and more affordable.

8. How can I reduce my first-party car insurance premium?

To reduce first-party car insurance premiums:

1. Increase voluntary deductibles
2. Maintain a no-claim bonus (NCB)
3. Install anti-theft devices
4. Choose only necessary add-ons
5. Compare insurers for the best rate

*Standard T&C Apply Disclaimer: 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.