Two-Wheeler Insurance: First-Party Vs. Third-Party

• First-party two-wheeler insurance is also known as comprehensive insurance, which covers not just third-party liabilities but also personal damages.
• Third-party two-wheeler insurance can protect you from legal liabilities as it covers third-party damages.
• Before buying a two-wheeler insurance online, evaluate both alternatives across various parameters and choose the one that best suits your needs.

If you have recently booked a bike or a scooter, you will surely recall the efforts and work behind evaluating multiple alternatives to make the ideal choice. Likewise, buying two-wheeler insurance online also requires doing some research. However, the typical use of technical jargon in insurance may make it difficult for you to understand some terms.This blog simplifies first-party and third-party bike insurance to help you simplify these terms and decide on buying two-wheeler insurance online. Besides, it also addresses one of the most common debates around two-wheeler insurance - first-party vs. third-party.

First-party bike insurance, also known as comprehensive insurance, offers extensive coverage for your two-wheeler. It covers the loss suffered by not only you but also any third party involved.It can protect you from damages arising from unpredictable events like accidents, and natural calamities like earthquakes, floods, landslides, hurricanes, cyclones, storms, etc. Further, it can also cover man-made disasters like fire, burglary, strikes, riots, etc.Additionally, you can extend the scope of your policy with add-ons or riders. They offer additional benefits at an extra price. Zero depreciation and roadside assistance are examples of add-ons.Hence, you can bundle your comprehensive policy with relevant add-ons to create customised and stronger protection for your two-wheeler.

Third-party bike insurance covers the damages caused to the vehicle or property belonging to somebody else. Thus, it can protect you from legal liabilities that may arise due to unexpected events like an accident.In this case, the third party can file for claim with the insurer, seeking compensation for damages caused. The claim gets approved as per the policy terms and conditions after an investigation of the matter and how the damage occurred.The policy cover can be increased to some extent by choosing from the limited add-ons that are available. You should note that it is mandatory to have at least a third-party cover for your two-wheeler.

Decoding the two aspects of two-wheeler insurance - first-party vs third-party makes it easier to know the salient features of both these policies.Let’s take a closer look at two-wheeler insurance - first-party vs. third-party:

• * IDV is the Insured Declared Value, which is simply the market value of your two-wheeler derived after factoring in age-based depreciation of your vehicle.
• # IRDAI is the Insurance Regulatory and Development Authority of India

The clear distinction between the two policies highlights the unique benefits they offer. Thus, you can make an informed decision and buy the most suitable two-wheeler insurance online.

Here are a few things that you should consider before finalising the insurance type:

• Age of Your Bike: If you have recently purchased a two-wheeler or if you own a luxurious two-wheeler, then it makes sense to opt for first-party bike insurance. On the other hand, you can consider third-party bike insurance if your two-wheeler is old.
• Premium Costs: Take into account the premium costs. If you are on a tight budget, then a third-party cover may be comparatively more reasonable. However, you need to keep in mind that you will have to take care of your two-wheeler's repair bills in case of unexpected events.
• Coverage: As explained earlier, third-party cover protects you from third-party liabilities. Whereas the coverage in the case of first-party insurance is more extensive. Thus, in case you want wider coverage for your two-wheeler, you may consider first-party insurance.

Now that you know the salient features of both first-party and third-party two-wheeler insurance, you can evaluate their pros and cons to make an informed decision. Compare the two across various parameters, including coverage and premium to select the one that best suits your needs.As you know, insurance is mandatory by law and non-compliance may attract penalties. So, you must buy suitable motor insurance online at the earliest. It will enable you to not only meet the regulatory requirements but also prepare for uncertainties better. Also Read: What Is Bike Insurance: All You Need to Know