5 min read
Updated on Mar 03, 2023
Naresh recently bought a new car from a dealer for his personal use. The dealer recommended buying car insurance to get protection in case of accidents and other issues. Getting the importance of car insurance, Naresh decided to go ahead and explore further. The insurance company explained the differences between first-party and third-party insurance in detail to help Naresh take an informed decision regarding car insurance purchase.
While buying car insurance, one should know more about the types from different sources. This, in turn, gives ways to gain more ideas in detail that will help make the right decision.
Below is the list of insurance plans available for car owners.
The first party refers to a person who buys the insurance from an insurer. First-party car insurance provides damage cover to the person who owns the vehicle. An insurer is the second party in an insurance plan and it should cover any losses to the first party due to natural calamities, man-made mistakes, and other problems. The insurance company also offers comprehensive insurance that provides personal accident cover to the first party when he/she suffers from personal injuries due to accidents.
A third party is someone other than the first party and second party. It refers to anyone who gets damaged or affected by the actions of the first party while driving a car on the roads. The second party should pay compensation for losses to the third party on behalf of the first party. Every car owner should have third-party insurance in India that will help get protection against liabilities.
Also Know: Who is a ‘First Party’ in car insurance policy
A car owner should know the difference between 1st party and 3rd party insurance before buying a policy. Moreover, it gives ways to invest money depending on the needs. Not only that, it provides ways to claim amounts for damage and injuries as soon as possible.
Also Read: How to Claim Compensation under Third Party Two Wheeler Insurance?
A car insurance plan provides maximum protection to vehicle owners with the latest features. It offers both first party and third party insurance in the market catering to the needs of the car owners. However, one should know the difference between 1st party and 3rd party insurance in detail before buying a plan. PayBima’s team of qualified experts can help you make an informed decision when you decide to buy an insurance policy.
Also Read: Car Insurance Policy Comparison | Five Reasons Why Car Insurance Is Necessary In India?
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
First-party refers to the insured individual, second-party is the insurance provider, and third party is the person towards whom damages are owed by the first-party in an accident.
Drawbacks of Third Party Insurance
The cost of repairs to your vehicle are NOT covered by Third Party Insurance. There is also no cover if your car is stolen or damaged by fire. If it's damaged in an attempt to break in, that's not covered either.
First-party insurance covers the damages or losses caused to the policyholder or his/her vehicle. The damages can be sustained during riots, strikes, earthquakes, floods, fire, theft etc. Third-party insurance covers damages or losses caused only to the third party due to an accident.
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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 17 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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