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.
First-party insurance for two wheelers
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:
- Damage due to fire
- Natural calamities
- 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.
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 the 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.
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.