What is First Party Insurance? What is Third Party Insurance? These are common questions that come to our minds while doing any vehicle insurance.

In this article, I am going to explain these aspects of General Insurance in detail. So read this article carefully so that these questions arising in your mind related to General Insurance can be resolved.

Why insurance necessary?

So, first of all, know why insurance is needed? Whenever we take our car on the road, there are many types of risks involved in it.

As it is possible that some person may get hurt by my car. Or any other vehicle can also be damaged by my car. Or someone else’s property may be damaged by my car.

So in these situations, I become liable to pay the money of the person whom I have caused damage by my car. or whose vehicle or property has been damaged by me.

What insurance company do?

Here the role of the insurance company starts. Insurance is a kind of contract, between you and the insurance company, under which we pay a certain premium to the insurance company, in return for which the insurance company will pay the loss if there is any loss while driving on the road. Will do

First party insurance meaning

So let’s know what is first-party insurance. The meaning of first-party insurance is such an insurance in which all those risks are covered, which are covered in third-party insurance. In this, we get some additional benefits.

As in the event of an accident, along with the third party, the damage caused to your vehicle is also covered inside it. What does it cover?

What is first party, second party and third party?

So friends first know what is the first party, second party and third party.

First Party

The first party is called the one who has got the insurance done. Like if I got my car insured then I was the first party.

Second Party

There is a second party insurance company from which we take insurance. To whom we pay the amount of fixed insurance premium, in return of which that company covers our risk. Like National Insurance, HDFC General Insurance, etc.

Third Party

Third-party is the one who has suffered any damage due to my car colliding. That loss could be anything. Due to the collision of the vehicle, it can cause some physical harm. Or there may be damage to his car or property. And his car collision can also result in death.

So first of all know what is Third Party Insurance?

First Party And Third Party Insurance

What is First Party Insurance? What is Third Party Insurance? These are common questions that come to our mind while doing any vehicle insurance.

In this article, I am going to explain these aspects of General Insurance in detail. So read this article carefully so that these questions arising in your mind related to General Insurance can be resolved.

Third Party Liability Insurance

Under Motor Vehicle Act 146 it is necessary that if I am going out on the road with my car. So it is necessary to have insurance of my car.

Compulsory insurance under the motor vehicles act

Third-Party Insurance is compulsory, I have to get it done, it is not based on my wish. Third-party insurance is mandatory. Under the third party insurance under the motor vehicle act 2019 which has been made recently, we have to take Third Party Liability Insurance under its rules.

This may be necessary because my income may not be very high and I only have a top car. But I bump into someone whose income is very high. And he dies. or his property which has been damaged by my collision. Its value is very high.

So in that case I will not be able to pay him his compensation, so the government made this norm that it will be necessary for every vehicle to have third-party insurance so that in such a situation the insurance company pays the damages.

What does third party car insurance cover? tp cover in insurance

So now we know what are the things covered in tp cover in insurance or Third Party Liability Insurance.

There are three types of risk cover in this.

1. If the third party with whom your car collided. The damage done to his vehicle or property is covered inside it.

2. Secondly, if there is any injury or death to the third party. That is to cover in insurance.

3. The third component that is covered inside it, which is generally not told by the insurance companies or hidden from you.

What is PA personal insurance cover?

That is PA personal insurance if any of your body part gets permanently disabled in an accident, or you die. So, in that case, you have to cover in insurance up to 15 lakhs in it.

Which we give insurance premium. There is a small amount in it for PA, which was earlier around 50 to 100 rupees. And you hardly used to get a cover of 1 lakh to 2 lakh.

But now it has been revised. IRDA is an agency that regulates insurance. She keeps on making amendments to it from time to time. And recently IRDA has increased the premium amount to Rs 300 by making amendments to it. Due to this, you get a cover of up to Rs 15 lakh.

third party insurance for bikes

The amount of third-party insurance premium in bikes or two-wheelers is very less. Because the chances of third party damage that you can do with the bike are very less.

third party insurance for car

After that come the cars which are up to 1000 cc. Their third party insurance is less as compared to big cars. Because even in these there is little chance of damage compared to big cars.

It goes much later in 1000 to 1500 cc cars. And in cars above 1500 cc, third-party insurance almost doubles. Because the chances of damage from these cars are very high.

PA cover in insurance

A very important thing that insurance agents do not tell you. The PA which is there only belongs to the driver. But generally, we travel with our family in the car.

If you want, you can take PA cover for the side passenger or maximum passenger capacity of the vehicle by paying the same premium extra. And if you have not got this premium cover added, then I suggest you to at least take the PA of the next ride.

Because in the case of Miss Happiness, if any of your friends or relatives are with you. So in that case, you get some financial help, some financial support.

Terms & Conditions tp cover in insurance

And friend’s third-party insurance has some terms & conditions. Suppose you damage any property or vehicle of a third party, in that case, the insurance company gives only a certain amount to the opposite party.

But if the third party suffers any injury or dies. So in that case this insurance money is unlimited. That means it can be anything. It is decided by the court that how much damage has happened to the victim. And that amount has to be given to the insurance company.

Third party insurance cover will not be available in these circumstances

An important thing here is the circumstances in which you have taken third-party insurance, even if the insurance company does not pay any amount.

The first situation comes in them of Drink & Drive if the first party has had a drink while driving. So the insurance company is not bound to compensate for the loss.

Second case if the first party does not have a valid driving license.

In both these cases, the damages will have to be paid by the first party itself.

So it was third-party insurance. Now know what is first-party insurance?

First Party Insurance

In first party insurance, all those risk cover things that were in third party insurance will remain the same, along with it we will get some additional benefits.

As in the event of an accident, along with the third party, the damage caused to your vehicle is also covered inside it. What does it cover?

All those ten types of risks are covered in first party insurance. So know the risks that first-party insurance covers.

Ten types of risks are covered in first party insurance

1. Fire explosion, self-ignition, or lightning

2. Burglary housebreaking or theft

3. Riot and Strike

4. Earthquake (fire and shock damage)

5. Landslide Rockslide

6. Flood Typhoon Hurricane

7. Accident external means

8. Malicious act

9. Terrorist activity

10. In Transit (Road, Rail, Water, Air)

We also call first-party insurance a comprehensive package policy. But even after taking first party insurance, many times the total damage caused to the vehicle by hitting a vehicle or due to any other reason, the insurance company does not pay us, the reason is depreciation.

Conclusion:

In this article, we have learned what is first party insurance. What facilities do we get in third-party insurance under motor vehicle act 2019? Along with this, there are many types of add-ons available in the insurance market which also cover depreciation. Therefore, before getting insurance, take good information from your agent about what is covered in the insurance policy.

If you have any questions related to insurance, then you can ask me by commenting. How did you like this article, do tell in the comment

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