What is difference between First Party Insurance v/s Third Party Insurance?
First vs Third Party Insurance: Whether you drive a two-wheeler or a four-wheeler vehicle the papers should be complete. In which you have to get vehicle insurance every year. The Union Road and Transport Minister has made changes in the rules, after which driving without insurance on the road can cost you dearly. But insurance policies also differ.
Often we hear about first party and third party insurance. However, most people are not aware of the advantages and disadvantages of these policies. If you also want to know what is the difference between first party and third party insurance, then we try to explain you through this article.
In fact, the Union Ministry of Road and Transport has made changes in the rules last year, after which driving without insurance on the road can cost you dearly. When it comes to insurance, two types of insurance come to mind, a first party insurance and a third party insurance.
Why is insurance necessary?
Insurance means insurance is very important to deal with the possibility of any loss or accident in the future. No one knows what is going to happen tomorrow, so if the vehicle is stolen, the loss is compensated only through insurance in case of an accident of the vehicle. If an insurance company insures the vehicle, then the insurance company will compensate for its loss.
What is First Party Insurance
First party insurance can be done with zero depth. In which everything is covered. Like the wear and tear of your car, your physical damage, from the damage of the vehicle to the damage of the vehicle in front of which your car has hit, you get everything from the company in this insurance policy.
instagram takipçi satın al
Even if the vehicle is stolen or badly damaged under this insurance, you get a claim from the company. In zero depth insurance, you can claim twice a year. Explain that according to the new rules, driving without insurance (First vs third party insurance) can be fined up to Rs 2,000 or jail for 3 months or both.
First Party Insurance 50% Claim
This is also first party insurance, but it has term and conditions. Under which the insurance company compensates 50 percent of the loss in case of your car accident and 50 percent has to be compensated by the vehicle owner. Explain that compulsory insurance is for the owner and driver of the vehicle. By taking comprehensive insurance, the road accident cover can be increased to more than Rs 15 lakhs, whereas in third party insurance, compulsory accident insurance is available only up to 15 lakhs.
What is third party insurance?
Third party insurance is that, in which you do not get the claim for any accident caused by you but the other person gets it. Suppose your bike or car collides with another bike or car, then your insurance company gives compensation for the damage caused in the accident.
In 3rd party insurance, even if your bike or car is stolen, you do not get the claim for it. Because theft is not covered in this and under third party insurance, only the opposite party gets the benefit who has suffered an accident with your vehicle. Let us assume that this insurance can be done under the process of keeping the papers of the vehicle complete.
Difference between First vs third party insurance
Third party insurance is that, the benefit of which is received by a third party rather than the owner of the vehicle and the insurance company. In this insurance, the third party is the one who is compensated for the loss. The first party is the one who buys this policy. The second party is called the company that issues it.
As per law, third party insurance (First vs third party insurance) is required for every vehicle. In India you can’t drive your vehicle without third party insurance. In this, the insurance company bears the cost of damage to the third party or his property in an accident. First party insurance is optional and its scope is also wide. Under this, the insurance company compensates for the loss of both the parties.
What damage is covered?
- Death or Bodily harm of another person
- Damage caused to another person’s vehicle or equipment
- Damage to other person’s property, house, wall, or belongings does not provide any relief to the vehicle owner
- Under 3rd party insurance, there is no liability for any damage caused to the vehicle owner or the driver. Apart from this, the vehicle from which the accident took place, does not get any compensation for the damage caused.
You Can Buy it Online
Third party insurance can also be purchased online. This can be done by visiting the website of an insurance company or through an insurance aggregator such as Policybazaar and coverfox If you want, you can also renew it online.
