First Party Car Insurance: Benefits, Inclusions & Exclusions

First-party car insurance protects vehicle owners against financial losses from accidents, theft, fire, natural disasters, and other damage to their own car. It provides broader protection beyond basic third-party coverage and helps drivers manage repair and replacement expenses, improving overall financial security and peace of mind on the road. Read on to know more.

What is First-Party Car Insurance?

First-party car insurance is usually considered comprehensive coverage, providing protection for both the vehicle and the owner against various risks. It includes comprehensive safeguards and protection against unnatural losses such as theft, fire, natural disasters, and accidental damage.

Moreover, it extends coverage to third-party liabilities, including robbery, loss, and road injury to other users. With multiple features, it ensures peace of mind on the road. Here's a breakdown of its key features:

What is the Difference Between First Party vs Third Party vs Comprehensive Insurance Policies?

In motor insurance (car or bike insurance), the terms First Party, Third Party and Comprehensive Insurance are often confusing because they are closely related but not identical.

1. First Party: You

2. Second Party: Insurance Company

3. Third Party: Another person or property affected by your vehicle

In India, third-party insurance is legally mandatory under the Motor Vehicles Act, while Comprehensive insurance is optional but strongly recommended.

Here is a difference between first-party and comprehensive car insurance and third-party insurance:

Also Read: How Does Your Zip Code Affect Your Car Insurance Rates?

Benefits of First-Party Car Insurance

Wondering what are the benefits of a first-party car insurance? Here are a few benefits that first-party car insurance gives you:

Comprehensive Protection

First-party car insurance provides comprehensive protection for a car and its owner/driver against a wide range of risks, including theft, fire, natural disasters, and accidental damage.

Covers Third-party Liabilities

Car insurance not only covers the damages to your car, but also covers the third-party liabilities, including death or injury to other road users, or damage to their property.

Cashless Claim Settlement

Most car insurance companies offer cashless claim settlement, which means that the policyholder can get their car repaired at any of the network garages, paying the standard deductible.

24/7 Road Assistance

First-party car insurance gives you the added advantage of 24/7 road assistance. This is a useful benefit that helps you in case of breakdowns, flat tyres, or other emergencies while on the road. However, you might have to get this benefit as an add-on. Benefits like these are not available to people who only have third-party car insurance.

No-claim Bonus

If the policyholder does not make a claim during a policy year, they will earn an NCB benefit that can lower their premium at the time of comprehensive car insurance renewal.

Customisable Coverage

Car insurance allows the policyholder to customise their coverage by choosing the add-ons that best suit their needs and budget.

What are the Inclusions of a First-Party Car Insurance?

Knowing what a first-party car insurance policy covers is essential before choosing the right protection for your vehicle. These inclusions help policyholders reduce financial losses from theft, accidents, natural disasters, and other unexpected events.

Accident Damage Coverage

First-party car insurance primarily covers damages caused to your own vehicle due to road accidents. Whether the damage is minor or severe, the insurer pays for repair or replacement costs under the policy terms. This protects the owner from sudden financial burdens after an accident.

Theft Protection

If the insured car is stolen, the insurance company compensates the owner based on the vehicle's IDV (Insured Declared Value). This inclusion is very beneficial, especially for new and high-value vehicles.

Natural and Man-Made Disaster Coverage

A first-party policy also covers losses by, for instance, cyclones, floods, vandalism, riots, earthquakes and fire incidents. Such protection becomes important in areas prone to unpredictable weather conditions or civil disturbances.

Personal Accident Cover

The majority of policies include a personal accident cover for the owner-driver. In case of any disability or death resulting from an accident, financial compensation is provided to the insured or nominee.

Add-On Benefits

Policyholders can also enhance their coverage with add-ons such as depreciation cover, roadside assistance, engine protection, and consumables cover for a broader financial security.

Also Read: LMV and MCWG: Licence and Insurance Differences Explained

What are the Exclusions of a First-Party Car Insurance?

While the first party car insurance offers broad protection for your own vehicle, it does not cover every type of damage or loss. Understanding the exclusions of the policy is important to avoid claim rejections and unexpected financial liabilities during emergencies.

Third Party Liabilities

A first party car insurance policy does not cover damages caused to another person, vehicle or property. Compensation for third-party injuries, death, or property damage requires a separate third-party liability cover.

Driving Without Valid Documents

Claims can be rejected if the driver was operating the vehicle without a valid driving licence registration certificate or other mandatory documents at the time of the accident. Insurance companies rigorously verify legal compliance before approving claims.

Drunk Driving or Illegal Activities

Any damage that occurs while driving under the influence of alcohol, drugs or while engaging in illegal activities is excluded from coverage. Insurers do not compensate for losses which result from negligent or unlawful behaviour.

Mechanical or Electrical Breakdown

Normal wear and tear, ageing, depreciation, mechanical failures, and electrical breakdowns are generally not covered under a first-party policy unless specific add-ons are purchased.

Consequential Damages

Losses arising indirectly from an accident, such as engine damage caused by driving through flooded roads after water enters the engine, are usually excluded unless engine protection cover is added to the policy.

Also Read: How to Check Car Insurance Policy Status Online?

How to Buy/Renew First-Party Car Insurance?

Once you understand what first-party car insurance covers and why it matters, the next step is learning how to get or renew a policy without any hassle.

1. Go to the official website of Bajaj General and click on the ‘Insurance’ section.

2. Choose the first-party car insurance option from the offered insurance types.

3. Fill in details such as your car’s model, manufacturer, variant, and city for accurate policy customisation.

4. Select a plan that aligns with your coverage requirements and budget.

5. For renewal, input your current policy and vehicle registration numbers.

6. Evaluate the percentage of the No Claim Bonus applicable for the current year.

7. Opt for additional coverage for your car's accessories or DriveSmart Telematics Services for added benefits.

8. Assess and opt for top-up covers to enhance your policy per your preferences.

9. Ensure accuracy by reviewing your policy, vehicle, and personal information. Update any changes in personal details if necessary.

10. Receive your premium quote and pay through the secure online portal.

11. Once payment is processed, your first-party car insurance is successfully renewed or purchased.

How to File a Claim under First-Party Car Insurance?

Here is first party insurance claim process for Bajaj General Insurance:

Step 1: Register Your Claim: Contact Bajaj General Motor Claim Assistance Number at 1800-209-5858 or use the Motor On The Spot service. You can do the same by calling 1800-266-6416. Alternatively, you can register your claim through the Bajaj General App.

Step 2: Provide Details: Share your contact, accident, and vehicle information.

Step 3: Get a Claim Reference: Receive a Claim Reference Number for tracking.

Step 4: Send for Repair: Move your vehicle to a garage to prevent further damage.

Step 5: Survey and Settlement: Submit documents for assessment and select the Motor OTS service for minor damage.

Also Read: Do’s and Don'ts While Filing a Car Insurance Claim

Why Choose First-Party Car Insurance?

First-party car insurance, also known as comprehensive car insurance, offers a wide range of benefits for vehicle owners. Here are the key reasons to choose it:

Wide Coverage

Unlike third-party insurance, first-party insurance covers damages to your own vehicle in addition to third-party liabilities. This means you’re financially protected against accidents, theft, natural disasters, and vandalism.

Personal Accident Cover

First-party insurance typically includes coverage for the driver and passengers, offering compensation in case of injury or death resulting from an accident.

No Financial Burden

It reduces the financial strain in case of damage or loss, as it covers repair costs, medical expenses, and even theft-related claims, subject to policy terms.

Additional Benefits

First-party policies often offer add-ons like roadside assistance, engine protection, and zero depreciation cover, making the policy even more comprehensive.

Peace of Mind

With a first-party policy, you have extensive coverage that prepares you for unexpected situations, giving you peace of mind while on the road. Choosing first-party insurance helps secure not only your car but also protects you and your passengers, offering a more robust safety net.

Also Read: Motor Insurance Constructive Total Loss Explained

Conclusion

First party car insurance, also known as comprehensive car insurance, offers extensive coverage for vehicle owners. It protects the insured vehicle against damage, theft, fire, and natural disasters, while also covering third-party liability.

Additional benefits like cashless claim settlement, 24/7 roadside assistance, and customizable add-ons make it a well-rounded policy. While it provides financial security, it does not cover intentional damage, wear and tear, or accidents resulting from illegal activities. This policy is ideal for car owners seeking complete protection and peace of mind.

Protect your car with reliable and comprehensive coverage from Bajaj General Insurance.

FAQs

Is first-party insurance mandatory?

No, first-party insurance is not mandatory, considering the law, but third-party insurance holds legality and is important under the Motor Vehicles Act of 1988.

What does first-party car insurance cover?

First-party car insurance covers damages to your own vehicle, accidents, theft, fire, vandalism, natural disasters, and more. This insurance can cover several issues and incidents, including accident cover and protection against various risks.

What documents do I need to file a first-party car insurance claim?

To raise a claim under first-party car insurance, one must share the insurance policy details, FIR (in case of theft or accident), vehicle registration certificate, driving license, and any other relevant documents related to the claim.

Which insurance is the best, first-party insurance or third-party insurance?

The best insurance depends on an individual’s needs and preferences. First-party insurance also includes comprehensive coverage for your vehicle and personal well-being. Meanwhile, third-party insurance comes with legal requirements and covers third-party damages in an accident.

How can I reduce my first-party car insurance premium?

There is an option in which you can reduce your first-party car insurance with the premium option by selecting options for higher deductibles, maintaining a good driving record, installing anti-theft devices, and bundling policies, with available discounts, offered by insurance companies, which are mostly based on factors like age, profession, and safety features of your vehicle.

What documents do I need to file a claim under my first-party car insurance policy?

To file a first-party car insurance claim, you need to submit several important documents. These include the car insurance policy document, a filled claim form, and the car’s registration certificate (RC). If the situation involves theft or a major accident, an FIR may also be required. Additionally, you must provide a valid driver’s license and all relevant repair bills and estimates for the damages incurred. Submitting these documents promptly can help speed up the claim settlement process.

Which insurance is the best, first-party insurance or third-party insurance?

First-party insurance offers comprehensive coverage, including own damage, while third-party insurance only covers liabilities. First-party is better for complete protection, while third-party is mandatory and more affordable.

How can I reduce my first-party car insurance premium?

You can reduce your first-party car insurance premium by increasing voluntary deductibles, maintaining a No-Claim Bonus (NCB), installing approved anti-theft devices, selecting only necessary add-ons, and comparing plans across insurers for better pricing.

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Disclaimer: Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.