February 24, 2024 Daily Awesome News

What Are First, Second, And Third Parties In Two-Wheeler Insurance?

First-Party Bike Insurance: What Is It?

In bike insurance, the term “first party” refers to the policyholder. The first-party is the one who makes the insurance premium payments to be eligible for benefits and other compensation under the policy. The insurance that offers protection against damage to your bike is referred to as “first-party bike insurance”. First-party two-wheeler insurance provides protection from theft, accidental damage, fire, man-made disasters, natural disasters, and total loss. Two parties are involved in this type of bike insurance. That’s the insurer and you. When you file a claim, the insurer compensates you as per the policy’s terms and conditions. For instance, you are the first party when you buy a two-wheeler insurance policy to safeguard your bike against unintentional damage. First-party insurance is what this kind of bike insurance is called. ‘Own Damage’ is another name for it.*

Second-Party Bike Insurance: What Is It?

In bike insurance, “second party” is a term used to describe the entity providing the insurance coverage. It is the insurance provider. The insurer, i.e., the second party, is liable to pay for the claim against the insurance policy. In contrast, the first party is responsible for paying the insurance premium. There is no such thing as “second-party bike insurance”. The insurance provider is merely referred to as the second party.

Third-Party Bike Insurance: What Is It?

In bike insurance, “third party” refers to a party other than the first or second party. It could be anyone with the right to file a claim against your insured bike for losses or damages to their property, personal injuries, or wrongful passing. However, the insurance that offers protection against third-party liabilities is called “third-party liability two-wheeler insurance.” This bike insurance involves the first, second, and third parties. Your insurer will pay out the insurance benefits if a third party makes a claim against the insured for damage or losses. A third-party liability policy is another name for this kind of insurance. Third-party bike insurance will pay out according to the terms and conditions of the policy if your bike damages a third party’s vehicle.*

You can always utilise a two-wheeler insurance premium calculator to understand the appropriate level of coverage needed.

Comparing Comprehensive And Third-Party Bike Insurance

Basic coverage is provided by third-party bike insurance, which is a requirement if you want  to ride a bike on Indian roads legally. The plan covers your third-party liabilities, such as harming someone’s property or injuring them while riding your bike.

Comprehensive two-wheeler insurance provides extensive protection. In addition to covering third-party liabilities, the insurance plan offers financial protection for bike damages brought on by theft, fire, accidents, natural disasters, and fire. Additionally, this kind of insurance policy gives the option to include worthwhile add-ons that broaden the scope of the base policy’s coverage.* Claims are subject to terms and conditions set forth under the motor insurance policy.

If you own a bike in India, you must have first-party and third-party insurance. Although it is required that you insure your bike with third-party liability, the comprehensive plan offers more comprehensive coverage by including third-party and own damage coverage.*

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

in Finance
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