Recently, the Supreme Court of India has given a
At the time of buying an insurance policy, you should consider certain matters like insurance cover, the capital insured, terms and conditions, etc. Many insurance buyers remain in the dilemma for which type of insurance policy to opt for his bike or car. Many of us do not have a clear idea about the difference between a first party insurance policy and a third party insurance policy.
- Read also: What is the difference between first party and third party insurance?
- Read also: What is the Difference Between First-Party Insurance vs Third-Party Insurance?
Comprehensive or first party Insurance policy
Comprehensive or first party policy covers
The policy provides coverage of own damage to the insured vehicle caused by,
- Accident by external means like fire, explosion, self-ignorance, lighting, earthquake, landslide, flood, or any other natural calamity.
Accidentdue to hit to any other vehicle, tree, stone, pillar, wall, a person or any other object.
- Transit by road, rail, inland waterways, air, lift.
- Burglary, housebreaking, theft.
- Terrorism, riots, strikes, malicious acts.
Comprehensive insurance or first-party insurance does not cover or excludes following conditions,
- Wear & tear and aging of vehicle, Depreciation, Mechanical or Electrical breakdown.
- In the case of tubes or
tyresbust or unable to work properly the owner gets 50% of the total cost from the insurer.
- Damages caused due to war and nuclear attack.
- If the driver of the insured vehicle remains under the influence of alcohol or other intoxicants. In other words, if the driver is drunk or remains addicted to drugs or anything else the insurer is not liable to pay the bill.
What is Third party Insurance policy
Third party insurance provides coverage to
Difference between First Party and Third party Insurance policy
Actually, third party insurance is for obligation only. According to Government rules, a vehicle must remain under
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