What are 1st, 2nd & 3rd Parties in Bike Insurance?

What is First-party in Bike Insurance Policy?

The 'first party'in the bike insurance policy refers to the bike owner who buys the two-wheeler insurance for their vehicle. They pay the premium to their insurance provider and avail coverage benefits under their 2 wheeler insurance policy.

However, the term 'first-party bike insurance'is very different. It provides financial protection against the damages caused to your own vehicle and offers safety for several unforeseen instances, including natural calamities, man-made disasters, theft, fire, accidental damages, and total loss.

In a 1st party bike insurance policy, two parties are involved, i.e. you and the insurer. For example, if you meet with an accident and raise a claim; the insurance company will pay the compensation according to the terms & conditions of the policy.

So, when you buy a two-wheeler insurance policy to protect your own vehicle, you are the first party here, and this type of two-wheeler insurance is also known as the 'Own Damage' cover.

What is Second-party in Bike Insurance Policy?

The 'second party'in the two wheeler insurance policy refers to the party that offers insurance coverage to the consumers. Basically, it is the bike insurance company or insurance provider who is liable to compensate for the claims raised under the valid bike insurance policy.

What is Third-party in Bike Insurance Policy?

The 'third party' in the 2 wheeler insurance policy refers to someone other than the insured and bike insurance company. They can be someone who raises a claim against your insured vehicle. This can be for causing unexpected damages or losses to their property or life in a road accident.

However, 'third-party bike insurance' refers to a policy that covers liabilities arising from damages or injuries caused to a third party. It involves three parties, i.e. first, second, and third. During a road accident, a third party can raise a claim against the insured for the losses caused to their vehicle and will receive compensation from the insurer. This is the reason why it is also known as a third-party liability policy or TP policy.

Moreover, this type of 2 wheeler insurance policy is mandatory in India and designed to compensate against legal liabilities if there is property damage or accidental damage to a third party.