Two Wheeler Insurance First Party vs Third Party

How Many Parties Are Involved in Two-wheeler Insurance? 

While buying insurance for your two-wheeler, it is not enough for you to understand the premium to be paid or the coverage, but you should also be aware of terms like the first party, second party, and third party in your two-wheeler insurance policy. 

As a first-time buyer, you might wonder about these terms used in your policy documents, but having a profound knowledge of these terms will help you at the time of buying/renewing the policy and raising a claim for the damages. 

1. First Party- The first party in the two-wheelers refers to the bike owner, whose name is registered in the policy. The first party has to pay the insurance premium to their insurer, and they can raise the claim under the insurance policy.
2. Second Party- The second party refers to the insurer or the insurance company that protects your bike and compensates for the damages to your bike.
3. Third Party- A third party is the vehicle owner who has been affected by the instances of the first party's insured bike in any form. 

For instance- if the insured first-party bike owner has caused any damage or injury to the third-party's vehicle or its owner, then the third party enjoys the insurance benefits given by the second party or the insurer.

Comparative Study Between First-party and Third-party Two-wheeler Insurance

Below is the chart giving a comparative study between first-party and third-party two-wheeler insurance.

Significance of First-party Two-wheeler Insurance

First-party two-wheeler insurance or comprehensive insurance policy protects the interest of the bike's owner. Under the first-party two-wheeler insurance, damages to your bike due to any natural or man-made disaster, accident, total loss, theft, or explosion are covered. Under this, third-party claims are also covered. Hence, if any third party gets affected by the insured first party's vehicle Then the second party (insurer) will settle the claim for them.

Significance of Third-party Two-wheeler Insurance

As per the Motor Vehicle Act 1988, a bike owner must have at least third-party two-wheeler insurance. Third-party insurance only covers the damages incurred to the third party's life or property. Its insurance price is less than first-party insurance cover because of the lower extent of coverage.

Which One is Beneficial?

The primary difference between first-party and third-party two-wheeler insurance is the extent of coverage. As you must have now understood, third-party insurance covers third-party liabilities only. On the other hand, first-party insurance cover gives you extensive coverage, by protecting you against Own-damages (OD) and third-party liabilities. Given the choices, it is necessary to buy a bike insurance that fulfills all your needs and is within your budget.
If you are looking to buy a basic coverage plan with affordable premiums, third-party two-wheeler insurance should be your first choice. However, if you seek all-around protection for your bike, then you should purchase first-party two-wheeler insurance. As stated earlier, first-party two-wheeler insurance is a comprehensive cover that financially protects you against various types of damages at once.

Final Thoughts

Understanding third-party bike insurance cover and its comparison with first-party insurance are essential for you. After all, it will help you in making an informed decision and will also allow you to protect your precious possession. We believe that the above comparative table will help you in differentiating between both the plans to make a wise decision.