Intrduction
All your insurance related doubts will be covered in this video itself. But for that I request you to watch the video till the end. First we will discuss why do we need insurance, whenever I take my car on the road, I can face many risks. I can accidentally hit someone on the road. Or I could accidentally hit another car. Or I could be someone's personal property while I was driving my car.
What is First Party Insurance and what is Third Party Insurance.
In that case I become liable to pay for the damages done to him or her. To cover for his car damage/property damage/ bodily damage eventually I need insurance company for any possible loss so here insurance is basically a contract between you and the insurance company. And as per the contract, I will pay a fixed premium every year to the company and in return, even if you hit someone's property, the company will pay the damage caused by you. So first let's talk about first party, second party and such names. The first party is the person in whose name the policy is issued.
What is First Party Insurance In Hindi?
Let's say this is my car and I have the car insured, then I will be the "first party" in the matter. The second party is the insurance company to whom I am paying the premium. And in exchange for that premium, the company covers my risk. Third party is the person whose property/car has been damaged due to my car accident. Or he may end up injured/disabled/in accident due to accident. So that person becomes a "third party" by accident. Let's talk about third party insurance first. As per the Motor Vehicles Act, 146, all cars must have at least third party insurance before driving their car on Indian roads. So in total third party insurance, it is a compulsion and not an option.
What is Third Party Insurance in Hindi?
Now let us discuss everything that comes under third party insurance. Third party insurance is a compulsion as I may have low net worth and I may have a small car but I can hit a person who has net worth of 23 crores per annum and let's say I own his property has caused a lot of damage to her in an accident or suppose she lost her life but I will not be able to pay her that amount, so in that case someone has to give that amount to her/family, so, the government has made a criterion That you must have at least third party insurance so that the insurance company can pay the amount to the third person who has an accident with your car. Third party insurance will cover 3 types of risks.
What Will Cover In Third Party Vehicle Insurance?
Damage to third person's car/property will be covered. Under this the injury/ loss of life of third person will be covered. The third component that hasn't been told to you by the insurance company is PA cover: personal accident cover My Instagram ID: motorcar.inSuppose you lost your life in an accident or got any permanent disability then in that case you have Rs. 15 lakhs cover in third party insurance also and the premium you pay for the insurance is a component for this PA cover. Earlier this amount was Rs. 50-100 more cover and it gives PA cover of Rs.1- 2 lakhs. But it has been modified over time. IRDAI regulates the insurance sector in India. And it keeps on amending the rules/norms/premium of insurance. And as per the latest revision, PA cover component of Rs 300 has been added and you will get 15 lakh PA cover. In case of permanent disablement/death of first party. In case of two wheeler, the premium of third party insurance is very less as the damage caused by the bike to the third person is very less.
Why Premium is Small in my Vehicle Insurance?
Hence less chance of loss and lower premium. Similarly, the premium for cars with engine size less than 1000 cc is small which increases in cars with engine size of 1000-1500 cc. And in vehicles above 1500CC this component doubles because with the size of the engine, the size of the vehicle increases and eventually you can increase the damage done to the third person.There is one more thing that insurance agents do not tell you that this PA cover is only for the driver. Generally you travel in your car with your family/friends. Hence you should take additional PA cover for your co-travellers as well. And maximum you can take PA cover for those people who are allowed to sit in the vehicle and if you have not taken this cover by mistake then I request you to kindly take PA cover for at least 2 persons. Because in case of accident, something may happen to you in your family and in case of accident this cover will provide you financial assistance. But there are certain terms and conditions of third party insurance.
What is the difference between first-party insurance and third-party insurance?
Suppose you have caused damage to the property/vehicle of a third person. In that case the insurance company will give a certain amount to the third person but if that person has suffered some injury or that person has lost his life then in that case it is not fixed and its "unlimited amount".