Today we will talk about what is Third Party Insurance policy and what is First Party Insurance policy in a Motor policy.
What is covered and what is not covered in these Third Party Insurance and first-party policies?
article may be lengthy but i will try to answer all your questions i will Answer to all your questions related to Motor Policy.
You all may know it already that govt is very strict about Motor vehicle act regarding Insurance.
If you are caught driving without Insurance.
Then you will be fined by cops but insurance is not only to avoid fines!
There are a lot of benefits of Insurance.
What is covered in a policy and what is not covered in a policy.
Many people don't know and.
They choose a wrong policy as per their requirement.
They buy a wrong policy
So They wasted their money and when They met with an accident or any miss happening happens Then in those situations they don't get claims approved.
which policy is better for you.
Your all doubts related to these topics will be cleared Watch this article till END!
Suppose I play with my vehicle on road God forbid!
Any misshaping happens with me or my vehicle hits something Damage someone's property.
someone gets hurt or injuries.
In those cases Insurance is very necessary!
There are lot of risks are covered in a policy And we pay.
For the covers will be present in our policy.
And those claims only.
will get approved First of all let's know about the different type of policies For different type of vehicles If you have a Private Vehicle.
Like Private car or bike for a personal use.
Then you should buy a pvt car policy or bike insurance If you have a commercial vehicle like: BUS truck, taxi, Cab etc School van like this!
You need to buy a Commercial Insurance for these type of vehicles.
Private car bike insurance will not be accepted if you use you bike for commercial purposes.
general Insurances are not accepted for commercial vehicles Now Let's see what is Third party and first party insurance what re differences and what a re covered Whats is not covered Let's us talk about these all.
1. Third Party Insurance Your own vehicle is not covered in Third party insurance.
If your vehicle meets with an accident There are any damages or something like Fire or vehicle is stolen In those cases your vehicle is not covered and you can't claim for that.
but in third party policy.
what is covered:
1. Third-party properties are covered.
2. Third party liabilities are covered.
For example; your vehicle hit someone's vehicle property someone's shop house or.
Any kind of someone's property is damaged Then those properties may be covered.
with a max amount of INR Rs. 7,50,000/ There is a cover of Rs. 7,50,000/ And Third party liabilities are also covered.
If you hit someone If that person gets hurt or he is dead In those cases there a cover of unlimited amount.
There is a cover according to that person profile What was his income.
How much he used to earn.
How many are members in his family how may people WA dependent to him.
Claim is approved in consideration these things So There is no limit of the amount According to Indian Government act.
Third party insurance is mandatory For Every vehicle playing on the road If someone has no insurance He will be fined.
Now Let's talk about First Party Policy If you want your own vehicle to be covered.
You need to buy Comprehensive Package policy All the benefits of a third party policy are included in this Plus.
Your Vehicle or Own damage will also be covered in this In this policy your vehicle is protected from Accident Fire Earthquake or any Natural calamities.
If there is loss to your vehicle.
Then those will be covered.
When someone buys this policy.
There is a specific value decided by the company for every vehicle Which is Called Insured Declared Value Sometimes it is called as sum Assured.
I will tell you later, How IDV is calculated?
of a vehicle If your vehicle is stolen or in a total loss and can't be repaired. In those cases the max.
claim approved Will be as per your IDV.
But in comprehensive policy too.
Some parts of your vehicle.
Are not covered 100% like; plastic Rubber Tyre Tube and batteries These are 50% covered Means If these parts are damaged in your vehicle.
Then you will pay 50% amount and Insurance company will pay 50% Fiver Glass will be covered 70% but.
The Windshield glass.
will be covered 100% Now
How IDV is calculated?
As your vehicle gets old the value of your Vehicle will be decreased.
If your vehicle is old not exceeding 6 months Then there is depreciation of 5% for 6 month to 1 Year old then the value of vehicle will be decreased by 15% from the Ex Showroom price.
If it is 1 Year to 2 year old Then the vale of vehicle will decreased by 20% Rest is as per the chart shown.
If it is old more than 4 Years but not exceeding 5 years Then IDV will be 50% of the ex showroom price But this depreciation which is decreasing the price
This depreciation can be protected! Means the Ex Showroom price of your car That will remain fixed there will be no Depreciation For this you will need Add on. Zero Depp.
(Depreciation) Also called Nill Dep,
Policy Zero Dep Policy, and called bumper to bumper policy too.
There a lot of add one We will talk later about these.
Let me tell you some basis things Which are to be remembered carefully.
You are buying third party policy or or buying Comprehensive first party policy.
You need to buy a PA Cover for owner-driver that is for you (Owner) This is called PA Cove to owner/driver This the is accidental insurance of Rs. 1500000/ But if you have this cover with any of your vehicle,
Then you don't need to buy it again on other vehicles Suppose you have 5 vehicles Then you need to but PA cover ONETIME That is enough If you have any running term/Life Insurance and the accidental cover is there,
Then there is no need to buy extra PA cover any misshaping will be covered there No Dealer will tell you these things, Because he gets, commission as per premium.
generally it happens that If you have 5 Vehicles he will buy 5 PA covers for you But when it comes to Get benefit or is there any miss happening
. Then Only ONE PA Cover is enough. You don't need to buy it multiple times.
That is loss your you.
The second thing to be remembered.
If external Fuel kit is installed in your vehicle.
If you installed any LPG/CNG Kit Then You need to get it protected.
Extra Premium will be 4% of the kit value If there are drink and drive case And Vehicle meets with any accident.
No Claim will be accepted.
If the driver has no valid driving license In that case too no claim is accepted!
No. 3 If the vehicle is used for an unlawful purpose And there is any loss to the vehicle.
Fire Total Loss or any accident.
There will be no claim accepted.
These things are to be remembered!
Now the question is You should buy Third Party Insurance Policy or 1st Party Policy?
Then My personal opinion is You should always buy a comprehensive/ Firsts party Policy.
because doesn't matter how old is your vehicle.
The difference in the premium of Third Party Insurance policy and first-party policy is very less. (difference) but suppose there is any misshaping / accident There may be the expense of 10k 20k or lakhs of rupees Doesn't matter how old is your vehicle.
to save a few amounts of a money We should not take a big risk I hope all your doubts related to First-party and third party Are cleared now!
If you still have any question related to Third Party Insurance policy and 1st party policy.
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