What Do You Mean by 1st, 2nd & 3rd Parties in Bike Insurance Policy
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Are you planning to buy bike insurance online? If so, you should have a good understanding of some jargons in the insurance sector, especially related to various parties involved in bike insurance coverage.
The first party, second party and third party bike insurance are some common terms in motor insurance which might seem like jargon for many people who do not have enough knowledge of insurance policies. Let us discuss these terms in detail to give you a clear understanding of the terms in this post.
What Do You Mean by ‘First Party’ in Bike Insurance Coverage?
The owner of the vehicle (in this case bike owner) is the person who is known as the First Party in two-wheeler insurance. This is the person who buys the two-wheeler insurance coverage and pays premium of the insurance to enjoy the benefits of the coverage.
However, when we say ‘first party two-wheeler insurance’, it means offering monetary protection against damages that are incurred by your own bike. So, under 1st party two-wheeler insurance, the protection is offered to the policyowner’s vehicle against sudden emergencies and calamities like natural disasters, accidents, theft, total loss, fire and so on.
Overall, under the 1st party insurance of bikes, there are two parties that are involved including the insured or the policyholder and the insurer or the insurance company. So, in case you raise a claim against any damages caused to your vehicle, the insurance provider will compensate for the claim as per the terms and conditions of the two-wheeler insurance plan.
So, to simplify, when a bike owner purchases a two-wheeler insurance plan to protect the vehicle against damages, the vehicle owner is called the first party. The insurance of such type is called the 1st party insurance for bikes or ‘Own-Damage’ cover.
What Do You Understand by ‘Second Party’ in Bike Insurance Policy?
In a two-wheeler insurance policy, the Second Party is the one that offers the policy. So, in this case it is the particular two-wheeler insurance company that offers coverage to the bike owner by compensating the vehicle owner monetarily against bike damages as the second party under two-wheeler insurance.
What Do You Mean by Third-Party in Bike Insurance Policy?
In a two-wheeler insurance policy, the Third-Party is the one that is neither the insured nor the insurer. This is someone who raises a claim for their damaged vehicle or against injury caused by an accident involving the first party. So, the third-party can raise a claim against the insured vehicle for causing any sudden damage or loss of life or property in an accident on the road.
It is obligatory in India to have a third-party two-wheeler insurance if you want to drive your vehicle on the Indian roads. The third-party two-wheeler insurance covers the insured against any liabilities caused by the bike owner to the third-party on the road while driving his/her vehicle. So, under this insurance plan, there are three main parties involved – the first-party, the second-party and the third-party. In the event of an accident, the third-party raises a claim against the insured for the losses caused to their vehicle and get compensated accordingly by the insurer.
Hence, this kind of motor insurance is known as 3rd party two-wheeler insurance policy, which is designed to compensate a third party against any legal liabilities in the event of property or personal damage to a third-party person or property.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 21 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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