When buying bike insurance, it’s essential to understand the different types of two wheeler insurance policies available in India. This will help you make an informed decision on which policy is right for you Absorption Costing.
First Party Insurance, also known as Comprehensive insurance, is a policy that covers both third-party liabilities and damages to your vehicle.
On the other hand, 3rd party bike insurance is a policy that only covers liabilities you might have towards a third party in case of an accident. This type of policy is mandatory by law in India, as per the Motor Vehicles Act 1988.
Understanding First-Party and Third-Party Insurance
The policyholder or bike owner takes First Party insurance in their name. This insurance provides reimbursements to repair costs for the policyholder’s two-wheeler in case of accidents. First-party insurance also covers damage from natural calamities such as floods, fires, accidents, or thefts. It is more comprehensive insurance coverage as it covers both the vehicle and its owner.
On the other hand, 3rd party bike insurance, also known as third-party liability insurance or two wheeler Insurance, provides cover for the person impacted due to the policyholder’s actions. For instance, if Ram has two-wheeler insurance and accidentally rams his bike onto another driver, Shyam, Ram’s Insurance will cover Shyam’s hospitalization bills and any repairs his vehicle needs because of the accident. The insurance benefits for injuries to the body, death, and damage to the vehicle are all provided to the third party. It’s important to note that the policyholder is not the beneficiary of any reimbursement the insurer provides for third-party insurance.
Mandatory Third Party Insurance
Before we discuss which policy is better, you must know that third-party two wheeler insurance is mandatory in India for all two-wheeler owners. Two-wheeler accidents are common in our country, and the government has made third-party insurance compulsory to ensure that everyone is protected in case of accidents. Not having third-party insurance can lead to legal fines and even punishment Engineering ECE.
Which Insurance Policy is Better?
Now, the question arises, which insurance policy is better? As a rule of thumb, it is better to opt for first-party insurance as it is more comprehensive. You would want insurance coverage for your vehicle in case of damages or accidents. Since first-party insurance covers damages to the vehicle and its owner, it is the ideal type of policy to opt for. However, it is essential to check that it is not a stand-alone Own damages cover, which needs to be more comprehensive.
Advantages of First-Party Insurance
First-party insurance offers a range of advantages compared to third-party insurance. One of the key benefits is the comprehensive coverage it provides.
First-party insurance, including 3rd Party Bike Insurance, covers the policyholder and the insured vehicle against various risks, including accidents, thefts, and natural calamities. If the policyholder gets into an accident, they will not have to bear the financial burden of repairing their bike or covering medical expenses.
Another advantage of two wheeler insurance For first-party insurance is that it is customizable. Policyholders can choose to add additional coverage for accessories and pillion riders. For instance, if you have expensive bike accessories or regularly carry a pillion rider, you can opt for additional coverage to protect these items.
One of the most significant benefits of first-party insurance is that it does not rely on third parties to file a claim. In case of any damages or accidents, the policyholder can directly approach their insurance provider. This means that policyholders don’t have to rely on the third party’s willingness to cooperate or delay in claim settlement.
Finally, first-party insurance offers peace of mind to policyholders. With a comprehensive policy, policyholders can be assured that they and their vehicles are fully covered in case of any untoward incidents. This can help alleviate the financial burden and stress of unexpected accidents or damages.
In conclusion, as an Indian bike owner, you must have two wheeler insurance coverage. While third-party insurance is mandatory, it is advisable to opt for first-party insurance as it provides comprehensive coverage for the vehicle and its owner. Customize your policy to suit your needs and double-check that it is not an Own stand-alone damages cover. Happy motoring, safe motoring!