What Does 'First-party' mean in Bike Insurance Policy?
The first party in the bike insurance policy refers to the individual who is a bike owner and buys the insurance for their vehicle. They pays the premium to their insurance provider and avail coverage benefits under their motorbike insurance policy.
However, the term 'first-party bike insurance' is very different. It provides financial protection against the damages caused to your own vehicle. The first-party bike insurance offers safety for several unforeseen instances, including natural calamities, man-made disasters, theft, fire, accidental damages, and total loss.
So, in first-party bike insurance, two parties are involved, i.e. you and the insurer. Suppose, you meet with an accident and raise a claim; the insurance company will pay the compensation according to the terms & conditions of the policy.
In simple terms, when you buy a two-wheeler insurance policy to protect your own vehicle, you are the first party here. This type of two-wheeler insurance is known as first-party insurance (commonly known as 'Own Damage' cover).
What Does 'Second-party' mean in Bike Insurance Policy?
The second party in the bike 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 raised claims under the valid bike insurance policy.
What Does 'Third-party' mean in Bike Insurance Policy?
The third party in the bike insurance policy refers to someone other than the insured and insurance provider. 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.
In India, it is mandatory to buy at least 'third-party bike insurance' that protects against third-party liabilities.In this type of policy, there is the involvement of three parties- 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.
That is why this type of motor insurance policy is known as a third-party liability policy or TP policy.Moreover, this type of policy is designed to compensate against legal liabilities if there is property damage or accidental damage to a third party.
Ans: No, it is compulsory to hold at least third-party bike insurance in India. As per the Motor Vehicle Act of 1988 if you don’t hold this cover, it may lead to hefty fines. In the worst-case, it can lead to imprisonment of 6 months or more.
Ans: First party bike insurance premium will vary from insurer to insurer. With the help of a free online bike insurance calculator available on Policybazaar.com, you can find the 1st party bike insurance premium.
Ans: In 1st party insurance, the insured bike is covered against many unforeseen accidents like- theft, accident, fire, etc. That's why it is also known as the own damage (OD) cover.
On the other hand, 3rd party insurance policy takes care of the damages/losses/injuries/death of the third-party property and person.
Before buying any type of two-wheeler insurance policy, always check its inclusions and exclusions. Along with it, go through the policy's terms & conditions. With this, now you must have learned some basic insurance jargon and it will help you in deciding which type of plan will be beneficial for you.
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between 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.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#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.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis