Buying bike insurance online requires more than selecting the lowest premium. Before finalising a policy, understand the differences between first-party and third-party bike insurance. Both policies serve different purposes and offer different levels of protection.
Learning how these policies differ will help you choose one that aligns with your coverage needs and legal requirements. Continue reading to learn about the differences between first party and third party and make an informed decision.
Understanding First Party and Third Party Bike Insurance
What is First Party Bike Insurance?
A first-party bike insurance provides financial protection against repair costs to the policyholder’s two-wheeler in case of an accident. This policy offers a wide range of benefits and protects your insured bike against risks including theft, accidents, natural disasters, and third-party liabilities.
What is Third Party Bike Insurance?
Third-party bike insurance is the minimum legal requirement for bike owners under the Motor Vehicles Act, 1988. Unlike first-party insurance, this policy primarily covers third parties involved in an accident caused by an insured bike. In other words, if the insured bike causes bodily injury or death to a third party, the insurance company compensates the third party involved.
First Party vs Third Party Bike Insurance: Key Differences
The table below outlines the key differences between first party and third party bike insurance:
| Parameters | First Party Bike Insurance | Third Party Bike Insurance |
| Coverage | It covers damage caused to insured bike due to accidents, natural and man made disasters, theft, total loss, fire and explosions. | It covers damage caused to a third party vehicle or any bodily injury and death to the third party. |
| Premium Calculations | Premium is calculated based on the approximate market value of bike, make, model and location. | Premium is calculated based on the standard rates as fixed by the IRDAI. |
| Exclusions | First party bike insurance excludes regular wear and tear, electrical and mechanical breakdowns, driving under the influence of alcohol and without a valid driving licence. It also excludes third-party damages. | The major exclusion under third party bike insurance is the damage caused to your own bike. |
| Claim Process | The policyholder raises claims from the insurer directly. | Affected third parties file claims against the insured vehicle. |
| Add-ons | Policyholders can include add-ons with their first party two wheeler insurance and enhance the coverage. | No availability of add-ons to enhance the coverage under third party two wheeler insurance. |
| Claim Settlement Process | The insurance company directly settles the claim. | The claims are settled by the Motor Accident Claims Tribunal Court (MACTC). |
Which One Should You Buy Online?
To decide whether to choose first-party or third-party bike insurance cover, consider your coverage requirements and budgetary preferences. Third-party insurance may be ideal for those who want to meet mandatory legal requirements at a lower premium. Riders opting for a first-party insurance policy may want financial cover for accidental damage, theft, and repair costs for their own bike.
Before finalising a policy, assess the age, usage, location, and maintenance costs of your two-wheeler. Also, compare the policy features, network garages, claim support and add-ons. A detailed comparison helps you choose a policy that aligns with your requirements.
Choose a Reliable Bike Protection with TATA AIG Bike Insurance
With the right policy, you can stay financially secure and covered on every ride. Choose a policy that offers appropriate protection, on-time renewal, and optional add-ons to reduce unexpected expenses. Also, compare the coverage and claim support before purchase to make an informed insurance decision.
TATA AIG bike insurance provides three coverage options- third party, own damage and comprehensive to cater to various insurance requirements. It also offers several add-on covers, access to network garages across the country, and 24/7 dedicated claim support. With a simple online purchase process, TATA AIG ensures your journey is protected and you enjoy peace of mind.
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