First-Party Insurance vs Third Party Insurance: Today we will talk about what is third party policy and what is the first-party policy in a Motor policy. What is covered and what is not covered in these third and first-party policies?
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 mishappening happens. Then in those situations they don't get claims approved.
So, which policy is better for you… Your all doubts related to these topics will be cleared, Watch this video till END! Suppose I play with my vehicle on road, God forbid! Any mishappening 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 differetnt 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, texi, Cab, School van… etc 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
First-Party Insurance vs Third Party Insurance
Now, Let's see, what is Third party and first party insurance what re differences and what are covered Whats is not covered
Let's us talk about these all.
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:
- Third-party properties are covered.
- Third party liabilities are covered.
For example; your vehicle hit someone's vehicle/property
someone's shop, house or.. Any kinks 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 and 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's profile. What was his income? How much he used to earn. How many are members of his family? how many people were dependednt on 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.
First Party Policy
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 IDV (Insured Declared Value), Sometimes it is called as sum Assured.
I will tell you later, How IDV is calculated?
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 the Insurance company will pay 50% Fiver Glass wil 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 Vehcile wil 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 vehile will be decreased by 15% from the Ex Showroom price. If it is 1 Year to 2 year old Then the vale of vehilce 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! This 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 Dep. (Depreciation)
Also called, Nill Dep, Policy Zero Dep Policy, and called bumper to bumper policy too.
There a lot of add ons
We will talk later about these. Let me tell you some basic things. Which are to be remembered carefully. You are buying a third-party policy or buying a Comprehensive, first-party policy. You need to buy a PA Cover for the owner-driver. that is for you (Owner). This is called PA Cove to owner/driver. This is accidental insurance of Rs. 1500000/
But if you have this cover with any of your vehicles, Then you don't need to buy it again on other vehicles Suppose you have 5 vehicles, Then you need to buy 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 mishappening will be covered there, No Dealer will tell you these things, Because he gets, commission as per premium.
So, 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 misshappening. 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.!
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 3rd party Policy or 1st Party Policy?
Then My personal opinion is; You should always buy .. a comprehensive/ Firstst party Policy. because doesn't matter how old is your vehicle. The difference in the premium of third party policy and first-party policy is very less. (difference) but suppose there is any mishappening/accident
There may be the expense of 10k, 20k or lakhs of rupees. Doesn't matter how old is your vehicle. So, to save a few amounts of 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 questions related to 3rd party policy and 1st party policy. Then write in the comment box. If you want to message me on IG.
I will reply to your all questions related to motor Insurance. Besides this, there are a lot of important topics Which are very important to us to know. like; There are a lot of add on covers. Like there is one cover, RTI RTI means Return to Invoice. If there is any loss to your vehicle. or goes in total loss. Then Return to Invoice means, the value of Showroom price as per your invoice, Then you get that amount, including new vehicle reg. cost.
So, like this, we can say you get a new vehicle. (New Vehicle replacement) likewise, there is a cover RSA, Road Side Assistance Tyre Protect Cover. PA Cover for Passengers. The unnamed passengers in your vehicle (As per your vehicle capacity). Then those unnameed people can alos be covered. Likewise, there are a lot of add on covers,
Now, No Claim bonus. This is a type of discount you get while purchasing policy. If you have knowledge of it, you can get a discount whilce… you renew the policy or buy a new one. What is NCB, How to get NCB?
and How to calculate NCB? We will also talk about these topics. If you have sold your vehicle, how to transfer NCB? on your New vehicle policy or how to get NCB Transferred? We will talk about these topics. in the coming videos.
Which topic you want me to make a video first. Please comment on your topic and let me know! I will come with a detailed video, on that tpoic. If you like this video, hit like button! If are a guest to this channel, Then Please subscribe the channel and press the bell icon.
So you don't miss any new video.
…and make sure you share the video to your friends and relatives. We should share the good and useful knowledge with others. I will come back with a new video. related to Motor Insurance. Till then, Bye Take care!