First Party Car Insurance
First party car insurance protects policyholders and their vehicles against own damages and personal injuries that may arise from an unfortunate accident. While this insurance plan is not mandatory, it is recommended for car owners seeking enhanced coverage during claims.
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What is First Party Car Insurance?
A first party car insurance policy comprises own damage cover and a personal accident cover for the first party (policyholder). Also known as standalone own-damage car insurance, this policy offers coverage for damages or losses sustained by the insured vehicle due to incidents such as natural disasters, vandalism, road accidents, theft, fire, etc.
Additionally, it covers bodily injuries and provides compensation for permanent or partial disability or death of the insured person, ensuring financial security as well as peace of mind. Car owners can purchase first party insurance separately in addition to the mandatory third-party car insurance.
First Party Car Insurance Benefits
The following are some features and benefits of purchasing first party insurance for your four-wheeler:
Quick Claims
The claim process is faster and hassle-free since you directly deal with your insurer under a first party insurance policy.
Independent Coverage
You're not dependent on the third person's policy to recover your damages or losses in the event of an accident.
Cost savings
Though the premium for first party insurance is a little more compared to a third party policy, it offers long-term savings by avoiding hefty out-of-pocket expenses.
Add-ons
First party car insurance coverage can be enhanced further by purchasing add-ons for an additional premium.
NCB Benefit
With first party car insurance, a policyholder is entitled to the No Claim Bonus (NCB) reward for every claim-free year. This bonus can be used to get a discount on the policy premium at the time of renewal.
Difference Between First Party and Third Party Car Insurance
First party insurance for car differs from third party insurance in several aspects, as follows:
| Category | First Party Car Insurance | Third Party Car Insurance |
|---|---|---|
| Meaning | A first party vehicle insurance policy provides coverage to the first party against third party liabilities and own damages. | A third party liability insurance policy covers a policyholder against damages to third person or property only. |
| Legal Mandate | This cover is not mandatory under the motor laws in India. | A third party car insurance policy is a mandatory cover to ply on Indian roads. |
| Additional Coverage | The coverage of First party insurance can also be enhanced by purchasing add-on covers. | Additional covers are not offered under liability only car insurance. |
| Premium Amount | The first party insurance price for cars is high as it offers wider coverage. | Compared to first party insurance, the premium amount of third party car insurance is lower. |
| Claim Settlement | Under first party insurance claim settlement, the final claimant to receive compensation is the first party or the car owner. | The claimant under third party insurance is the third party that has sustained damages due to an accident involving the insured vehicle. |
Coverage Under First Party Car Insurance
Manmade Acts
Any damage to the insured vehicle due to strikes, riots or any manmade disasters
Theft
Any loss or damage to the insured car due to theft, housebreaking or burglary
Fire
Total or partial loss of the insured car due to fire, self-ignition or explosion
In-transit Damages
Damages sustained by the insured vehicle while it was in transit via water, land or air
Natural Disasters
Any damage sustained by the insured vehicle due to a natural disaster like cyclone, earthquake, flood, etc.
Accidents
Any loss or damages due to an accident of the insured car
Car Breakdown
Damages arising out of the mechanical or electrical breakdown of the insured car
Drunk Driving
Any damage sustained by the insured car when the driver was under the influence of alcohol or drugs
Invalid Driving Licence
Any damage caused to the insured vehicle when the driver was not carrying a valid driving license
Third Party Liabilities
Third party death, bodily injuries and property damages
Outside Geographical Area
Damages sustained by the insured car outside the geographical scope of the motor insurance policy
Limitations as to use
Losses to the insured vehicle when being driven for other purposes, such as a private vehicle being used for commercial purposes or vice versa
Gradual Wear and Tear
Any gradual wear and tear of the insured vehicle due to frequent usage or ageing.
War-like Situations
Any damage to the insured vehicle arising out of civil war or nuclear perils
How to Buy/Renew First Party Car Insurance?
You can easily purchase or renew first party insurance online from Policybazaar.com. Here are the steps:
- Visit the 'Car Insurance' page on Policybazaar.com
- In the given form, input your car number or select 'Brand New Car' in case of a new car.
- Select your car's make and model, RTO, variant, fuel type and registration year.
- In case of renewals, select your policy expiry date and mention previous claim details if any.
- Now, from the list of different four-wheeler insurance plans, select the one under 'Own Damage Plans' that suits your coverage needs and budget.
- In case of a new car, opt for a comprehensive car insurance policy that includes both the own damage cover and the mandatory third party car insurance.
- You can also opt for any add-ons that you may want.
- Pay the policy premium online via net banking, debit/credit cards, or UPI.
- After the payment is complete, you will receive your 1st party car insurance policy documents at your email address.
How to File a Claim Under First Party Car Insurance?
Cited below is the simple procedure to raise a claim under your first party motor insurance policy:
- The first step is to inform the insurance company immediately after the incident to register a claim.
- The company will then send a surveyor to assess the damages caused to the insured car.
- The surveyor will ask for some documents for claim verification. Make sure you keep these documents handy.
- The insured vehicle will then be sent to the network garage for repairs and the claim amount will be settled by your insurer directly with the insurance company.
- If the repairs have been done in a non-authorized garage, the claim amount will be reimbursed to you after the repairs are complete and you have paid the bill upfront.
First Party Car Insurance FAQs
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Q1. Is first party insurance mandatory?
Ans: No. A first party car insurance policy is not a mandatory cover as per the motor laws of India. However, if you want to cover your car against own damages as well, you can purchase first party insurance for your four-wheeler. -
Q2. What is the meaning of TP in car insurance?
Ans: TP refers to the third party in motor insurance terms. It is the individual who sustains injuries, death or property damages caused by the insured vehicle. -
Q3. What documents are required to raise a claim under a 1st party car insurance policy?
Ans: To raise a claim under your first party insurance policy, you will need the following documents:
- Duly filled and signed claim form
- Car insurance policy papers
- Driving licence of the driver/owner.
- Copy of Police FIR
- Repair estimates and bills
- Insured vehicle’s registration certificate
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Q4. How can I reduce my first party insurance price?
Ans: You can follow these tips to reduce the first party insurance price of your car:
- Retain your NCB reward
- Install anti-theft device
- Compare first party insurance rates online
- Avoid buying unnecessary add-ons
- Raise your voluntary deductibles
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#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
+Savings are based on the maximum discount on own damage premium as offered by our insurer partners.
^Lowest Price Guaranteed is based on certifications shared by insurers with us. Policybazaar will facilitate price matching subject to the terms and conditions of select insurers.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
