What Is First Party Insurance
Whenever we buy a new vehicle, some rules and regulations are made for it, which we are obliged to follow. Not only do we have to pay a heavy fine for not doing so and at the same time it can prove to be very harmful for our life. You must have understood what we are talking about. Actually we are talking about auto insurance. In fact, it is mandatory to have insurance for any engine driven vehicle in India.
When we buy a new vehicle, then first party insurance is done for that vehicle. Most people must have heard its name but if you are asked what is First Party Insurance and what are the facilities you get in it. Hardly many people know about it. You don’t need to worry though. We are going to give you complete information about this through this post.
What Is First Party Insurance
The first party is called the person who buys insurance for his vehicle. Whereas the second party is called the insurance company, which sells you the plan of insurance. On the other hand, the third party is called the vehicle, person or property, which is damaged by your vehicle. In such a situation, whoever buys first party insurance, he is given full compensation in case of any accident. This is called first party insurance. In fact, in auto insurance, this facility is available to you when you take a comprehensive insurance policy. Hence it is considered as first party insurance.
What Protections Are Included?
If you take a comprehensive insurance policy for a new vehicle, then you get the benefit of four types of protection. Know what are those protections-
Compulsory Person Accident Insurance
Under this protection, if the owner of the vehicle suffers any kind of damage while driving or if he dies in a more serious way, then his compensation is available under this insurance. But it is effective only if you take a compulsory personal accident insurance of Rs 15 lakh along with vehicle insurance. It has now become mandatory to take this type of accident insurance while taking any kind of insurance.
Addon Covers Or Riders
Along with taking comprehensive insurance, you also have the option of taking some other auxiliary insurance. Those who help you in times when the circumstances are not right. That’s why it is called addon insurance. We are going to tell you what kind of benefits you can take through addon covers.
Under this, if you take a zero depreciation cover, you do not get much deductible in the value of your vehicle even though it is old. However, this facility is available for vehicles up to 5 years of age.
Also, you get to compensate for the damage caused to the engine only through the add on cover.
The benefit of Roadside Assistant cover is also available under this addon cover. For example, if your car gets damaged somewhere on the way, then the cost of getting it built and the mechanic for this is also provided by the insurance companies.
By taking a comprehensive insurance policy, if your vehicle is damaged in an accident, then you get compensation for it, as well as the insurance company bears the cost of injury to the driver of the vehicle.
Owner damage cover
If you face an accident while driving, in which your vehicle is damaged. So its compensation is available through own damage cover. Even if your car is stolen or your car goes missing, then in such a situation you do not need to panic. The full cost of your vehicle is given to you by the insurance company.
Third party insurance
In an accident if your vehicle injures another person, or dies. So compensation is given to him by the insurance company. Apart from this, compensation for damage caused to any other vehicle or property is also given by the insurance company. Apart from this, even after there is a court process in these cases, the insurance companies bear the cost.