First Party Two-Wheeler Insurance: Benefits, Inclusions & Exclusions

Paid the token amount for your new bike, congratulations! Now the next step is choosing a two-wheeler insurance policy. As confusing it gets in picking your favourite bike, similar is the experience of selecting the right bike insurance policy. With a plethora of options, it can be perplexing as to what shall be the best for you. Between this selection, you are posed with a crucial choice of opting for first-party coverage or third-party coverage. To deduce, understanding how a first-party insurance for two two-wheeler differs from a third-party policy is necessary. Let us look at it.

Understanding First-Party Two-Wheeler Insurance

First-party insurance for a wheeler is a type of insurance plan that offers complete protection to your bike. For this reason, it is popularly referred to as a comprehensive policy. As the name suggests, the policy offers coverage for first-party liabilities, i.e., to you, the policyholder. Any damage to your bike is insured under this first-party insurance for two two-wheeler. The compensation under this coverage is directly paid to you by the insurer. Here are some examples of cases covered under a first-party insurance for two-wheeler:

• Damage due to fire
• Natural calamities
• Theft
• Man-made perils

However, there are still a few situations that are excluded from first-party coverage, which include routine wear and tear, depreciation of your bike, any electrical or mechanical breakdown, damages to consumable spares like tyres, tubes, damages when the driver did not possess a valid driving license or was under the influence of alcohol or other intoxicating substances.

Third-Party Insurance for Two-Wheelers

In contrast to a first-party cover, third-party bike insurance has limited coverage. It only protects you, the policyholder, against the liabilities arising due to an accident to a person or damages to property. Since it is to ensure protection of a third party outside the contract of insurance, it is called third-party two-wheeler insurance cover. Now that you know how first-party insurance differs from third-party cover, let us understand why it is essential to purchase a first-party two-wheeler insurance online.

First-Party vs Third-Party Insurance

First‑Party Bike Insurance Benefits

First‑party insurance for two‑wheeler—also known as 1st party cover—protects both your bike and yourself from various risks. It includes protection against:

• Accidental damage (collisions or impact repairs)
• Theft, fire and natural disasters (floods, earthquakes)
• Personal Accident (PA) cover for owner-drivers, offering medical and disability benefits up to ₹15 lakh

First‑party cover gives you financial security and legal compliance under the Motor Vehicles Act. Plus, it offers customisation—you can add riders such as zero‑depreciation or roadside assistance. Bajaj General Insurance combine core benefits with tailored add‑ons and nationwide support—especially through their 7,200+ cashless garages—so you ride with confidence.

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First‑Party Insurance for Two‑Wheeler: Inclusions and Exclusions

Inclusions:

• Accidental damage repair or parts replacement
• Theft, fire and natural disasters (flood, earthquake)
• Man-made disasters (riot, strike)
• Personal Accident for owner-driver (up to ₹15 lakh)

Exclusions:

• Driving under influence of alcohol/drugs or unauthorised activities (racing)
• Mechanical breakdown, wear and tear, non-standard modifications
• Riding without valid licence or outside the defined geographical area
• Participation in illegal or hazardous activities or war-like events

Understanding these inclusions and exclusions helps you choose the right coverage. Bajaj General Insurance, for instance, offers clear policy wordings and transparent claim support to avoid surprises.

Add‑Ons to Enhance Your 1st‑Party Bike Insurance

Make your comprehensive cover more robust with these add‑ons:

• Zero‑Depreciation Cover – Avoids deductions on parts for up to two claims per year, ideal for new bikes
• Return‑to‑Invoice Cover – Pays original invoice value on theft or total loss, rather than depreciated value
• Consumables Cover – Reimburses consumables like nuts, lubricants used in repairs
• Emergency Medical Expenses – Includes ambulance and hospital costs for rider/pillion accidents
• Roadside Assistance – Offers towing, on-site repairs or fuel delivery during breakdowns
• Additional PA Cover – Extends protection above ₹15 lakh for serious accidents
• Extra Third‑Party Legal Cover – Enhances third-party liability, giving superior legal protection

Add‑ons let you finetune your policy to match your riding habits, location and bike value.

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Determining Factors for Two‑Wheeler Insurance 1st‑Party Premiums

Here’s what affects your first‑party bike insurance premium:

• Insured Declared Value (IDV): Higher IDV (dependent on bike’s model/year) increases the premium; too low an IDV may under-value claims
• Bike’s age and model: Older bikes or premium models often lead to higher premiums due to repair complexities and part costs
• Owner’s age and claim history: Experienced riders with no past claims enjoy No‑Claim Bonus (NCB); younger or new riders might attract higher rates
• Registration location: Urban areas with higher theft or accident rates attract higher premiums compared to rural regions
• Voluntary deductible: Opting for a higher deductible reduces premium; you share minor repair costs
• Add‑ons chosen: Covers like zero-dep, invoice return, roadside support add to the premium
• Security features: Anti‑theft devices and tracking gadgets can earn premium discounts

Bajaj General Insurance allows you to customise factors like IDV, deductible and add‑ons—balancing protection and cost effectively.

Tips to Choose the Right First‑Party Insurance for Two-Wheelers

When buying comprehensive (1st party) bike insurance, compare multiple insurers to understand differences in IDV, add‑on options and claim support. Choose policies that include essentials like zero-depreciation and roadside assistance. Verify the insurer’s claim settlement ratio and process—digital services make a difference. Opt for higher voluntary deductibles if it makes economic sense without underinsuring your bike. Stay updated on NCB benefits and security feature discounts. Consider long-term bundled covers (1-year own damage and 3–5 years third-party) for convenience. Bajaj General Insurance helps simplify comparison buying with customisable, feature-rich plans.

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Is First-Party Insurance for Two-Wheelers Mandatory?

The Motor Vehicles Act of 1988 makes it compulsory for all bike owners to have at least third party insurance cover. While it is not compulsory to invest in a first-party policy, it does benefit you by providing an all-round coverage. Accidents are unfortunate events that not only cause injury or damages to others, but also to you and your vehicle. First-party bike insurance policy is that which offers coverage for both the owner as well as third party. Also, natural calamities that cause significant damage to life also have disastrous consequences on vehicles.

First-party insurance cover helps you safeguard your vehicles and prevent a financial loss. Lastly, when buying a first-party vehicle insurance online, it can be customised to include additional coverage options that cover depreciation, offer roadside assistance, engine breakdown cover, and more. These benefits otherwise are not available for third party insurance plans. To conclude, it is a smart choice to opt for a first-party cover as it helps avoid third party liabilities as well as reducing financial losses from damages to your vehicle. However, when you select one, carefully analyse your requirements and select after comparing the available options so that it offers benefits that are tangible in the long run.

How to Make a Claim for First-Party Bike Insurance?

In case of an unfortunate event, claiming first-party bike insurance involves a few straightforward steps:

• Inform the Insurer: Notify your insurance company about the incident immediately.
• Submit Claim Form: Fill and submit the claim form and the required documents.
• Inspection: The insurer will send a surveyor to inspect the damage.
• Repair and Settlement: Get your bike repaired at a network garage, and the insurer will settle the bill directly.

How to Choose the Right First-Party Insurance for Your Bike?

Selecting the right first-party insurance for your bike involves considering various factors:

• Coverage Options

Ensure the policy covers many perils, including theft, fire, and natural disasters.

• Add-ons

Look for useful add-ons like zero depreciation, engine protection, and roadside assistance.

• Claim Process

Choose an insurer with a hassle-free and quick claim process.

• Premium Cost

Compare insurance premiums to find an affordable yet comprehensive plan.

• Customer Reviews

Check customer feedback and reviews for insights into the insurer's service quality.

Also Read: First Party Car Insurance: Benefits, Inclusions & Exclusions

Importance of Buying First-Party Insurance for Your Bike

Securing first-party two-wheeler insurance online is essential to protect your bike comprehensively against unforeseen risks.Investing in first-party two-wheeler insurance online is crucial for several reasons:

• Comprehensive Protection

Offers extensive coverage against a variety of risks.

• Peace of Mind

Ensures financial protection, reducing stress in case of accidents or theft.

• Legal Compliance

While third-party insurance is mandatory, first-party insurance provides additional security.

• Resale Value

Maintains the value of your bike by covering repair costs, thereby keeping it in good condition.

• Customizable Coverage

Allows you to tailor the policy to meet your specific needs with various add-ons. Choosing first-party insurance not only fulfills legal requirements but also ensures your bike is protected, providing peace of mind and maintaining its value over time.

FAQs

How to check a bike’s first-party insurance?

You can check your 1st party two wheeler insurance details online via the insurer’s website/app. Enter your policy number or bike registration to view add‑ons, IDV and claim history.

Is first party insurance compulsory?

No. First-party insurance for bike isn’t legally required—only third-party insurance is. However, comprehensive policies offer full protection and are strongly recommended for financially safeguarding your bike.

What does 1st party insurance cover for bikes?

First-party insurance covers damages to your bike caused by accidents, fire, theft, natural calamities, and man-made perils.

Can I claim insurance benefits for damages caused by accidents?

Yes, first-party insurance provides coverage for damages to your bike resulting from accidents.

Does 1st party insurance cover theft of my bike?

Yes, first-party insurance includes coverage for theft, ensuring you are compensated if your bike is stolen.

What natural disasters are covered by 1st party insurance for bikes?

First-party insurance covers natural disasters such as floods, earthquakes, storms, and cyclones.

Does 1st party insurance cover damages caused by fire or explosion?

Yes, damages caused by fire or explosion are covered under first-party insurance.

Is 1st party insurance only for new bikes?

No, first-party insurance is available for both new and used bikes, providing comprehensive coverage regardless of the bike’s age.

*Standard T&C Apply

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.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions. Claims are subject to terms and conditions set forth under the motor insurance policy.