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What is First Party Insurance? Is it necessary to have it done?

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Dinesh Kumarhttps://www.gyanshare.in
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In this article, we will explain what is first-party insurance. Is first-party insurance required? And what are the benefits of first-party insurance?

What is First Party Insurance?

In the case of auto insurance, there are a total of three types of parties.

  • The first party, the one who gets insurance or buys. That means the customer. In the language of insurance, it is called First Party. Your vehicle is also involved in this.
  • The other party is the one who ensures or sells. That is the Insurance Company. This is called the Second Party in the language of insurance.
  • The third party is the one that can cause some harm when it hits your vehicle. It is called Third Party in the language of insurance.

First-party insurance: When the first party (the buyer of insurance) has to get compensation from an insurance plan or policy. So much insurance plan is called first-party insurance.

Is it mandatory to have first-party insurance?

Legally, taking Comprehensive Insurance is not mandatory. That is, you are not obliged to take Own Damage Cover. However, third-party insurance is mandatory. And now, with third party insurance, personal accident insurance of 15 lakh is also mandatory.

In this way, you can also operate only with Third Party Insurance and Compulsory Personal Accident Cover. But, it is better that you take Comprehensive Insurance so that you can get compensation even if your vehicle is damaged.

What are the benefits of first-party insurance?

By getting First Party Insurance, you basically get the following types of insurance cover:-

  • Make up for the damage done to your car
  • Make up for the loss of your car’s equipment
  • Compensate if your vehicle is stolen or completely destroyed

With third party insurance being mandatory with First Party Insurance you get the following facilities:-

  • Payment of damages on damages to another person from your vehicle.
  • Payment of damages for damage caused to the vehicle by your vehicle
  • Damage paid to the property of another from your vehicle
  • Payment of expenses of lawyer and litigation in case of court case against you

With Third-Party Insurance, you get the following facilities due to taking compulsory accident insurance:-

  • Treatment compensation due to injury to your body
  • Financial compensation for full or partial disability
  • Financial compensation on death of vehicle owner
  • Compensation for damage to your driver and passengers

How to get first-party insurance?

First-Party Insurance is basically in the form of Own Damage Cover. However, you cannot buy it independently. To get its facilities, you have to buy a Comprehensive Insurance Policy. You have two ways to buy it-

  • Offline Methods: You can buy a vehicle insurance policy through the Insurance Agent. If you want, you can also take an insurance policy by going directly to the insurance company office.
  • Online Methods: You can buy auto insurance policy by going directly to the website of the Insurance Company. Or you can also buy through Insurance Aggregator.

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