What is Third Party Insurance_ First Party Insurance _ Insurance?
Hello, friends
In this edit, we will understand what is first-party insurance
What is third-party insurance? And all your insurance-related doubts will be covered in the same editorial.
But for that, I ask you to watch the editing to the end.
We'll first discuss why we even need insurance,
When I ride my car on the road, I may face many dangers.
I might accidentally bump into someone on the road.
Or I might accidentally hit another car.
Or I may own someone's private property while driving my car.
In this case, he became liable to pay for the damage you caused him or her.
To cover damage to his vehicle/property damage/physical damage
In the end, I will have to pay for any potential loss
So here's the need for the insurance company.
Insurance is basically a contract between you and the insurance company.
According to the contract, I will pay a fixed premium every year to the company
In return, even if you injure someone's property, the company will pay for that loss they caused you.
So let's first talk about the terms First Party and Second Party and why these names.
The first party is the person in whose name the document was issued.
Let's say it's my car and I insure the car, so I'll be the "first party" in this case.
The second part is the insurance company that I pay the premium.
And for that premium, the company covers my risk.
The third party is the person whose property/car has been damaged due to my car accident.
Or he may be injured / disabled / expired in the accident due to the accident.
So this person becomes the "third party" to the incident.
First, let's discuss the third-party insurance itself.
According to the Automobile Law, every car must own 146 cars
At least 3rd party insurance before I drive on Indian Roads.
So in Total Third Party Insurance, it is compulsory and not optional.
Now let's discuss all the things that are covered by third-party insurance.
Third-party insurance is mandatory because my net worth may below
I might have a small car but I might hit someone
Who is high net worth, suppose Rs 50 crores annually
Suppose I damaged his property frequently in an accident or suppose he lost his life
But I can't pay him that much
So in this case someone has to pay him/his family this amount
Therefore, Govt have set a standard that you must have at least 3rd party insurance
So that the insurance company can pay this amount to the third person who had an accident with your car.
Third-party insurance will cover 3 types of risks.
This will cover damage to the vehicle/property of the third person.
The injury/loss of life of the third person will be covered hereby.
The third ingredient your insurance company didn't tell you is
PA Cover: Personal Accident Cover
Suppose you lost your life by chance or became permanently disabled
In this case, you also have Rs. Covers 15 lacs even in third-party insurance
The premium you pay for insurance includes an element of PA coverage.
Earlier this amount was Rs. 50-100 was the cover
And it was used to give cover PA from 1 to 2 lac.
But over time it has been revised
IRDAI regulates the insurance sector in India.
And it continues to modify the rules/rules/premium.
According to the latest modification, the PA coverage component of Rs 300
Added and you get a 15 Lacs PA cap.
In the event of permanent disability/death of the first party.
If the two wheels are used, the premium from the third party is very low
Because the damage a bike can do to a third person is much less.
So the chances of damage are less and the premium is less.
Similarly, cars with a volume of less than 1000 cc have a small premium
Which increases in cars with an engine size of 1000-1500 cc.
And in vehicles with a height of more than 1500 cc, this component is doubled
Because of the size of the engine, the size of the car increases
In the end, the damage you can do to the third person increases.
There's one more thing insurance agents don't tell you
Is that this PA cover for the driver only?
Generally, you are traveling in your car with your family/friends.
So you should take an extra PA cover for your passengers with you as well.
And at the maximum, you can take PA Cover for people who are allowed to sit in the car
And if you don't accidentally take this cap,
Then I ask you to please take a PA cover for at least two people.
Because in case of an unfortunate accident, you may have some family members with you
This coverage will give you financial support in the event of an unfortunate accident.
But third party insurance has some terms and conditions.
Suppose you have damaged property/vehicle belonging to a third person.
In this case, the insurance company will provide a fixed amount for the third person
But if that person is injured or loses his life
In this case, it is not repaired and its "unlimited amount" depends
The courts will decide the final settlement amount.
And many factors
Consider it, like his annual income
His daily income and whether he is the sole breadwinner or the number of dependents he has
Many similar factors are taken into account before determining the amount.
And in many cases, such as the presence of some NRIs
Up to 4,5 crore settlement amount.
But there are two conditions that violate third-party insurance.
The company may not pay for the losses.
The first requirement is drinking and driving.
Suppose I am the first party and I was driving while drunk,
In this case, I had an accident
So the insurance company will not pay for the losses you caused to someone.
The second condition is that I do not have a valid license
If these two conditions are met,
So in court rulings, you will be responsible for paying this amount and not the company
Now let's talk about first-party insurance.
The first party insurance is in addition to the third party insurance.
All benefits and risks of third party insurance will be covered here
And you will get some "extra benefits" in this
Damage to your own vehicle that is not covered by the third party
Which will be covered under the first-party insurance
In Total, 10 types of hazards for your vehicle are covered.
All these risks are mentioned above, please stop the video to read all these.
But the damage caused by an accident will be covered mainly
Intentional damage to your vehicle will be covered.
Damage caused by some fires will be covered.
Earthquakes, landslides, and losses in transit will be covered.
First-party insurance is also called an "all-in-one package policy"
Even when you have first-party insurance,
You had an accident and your car was fixed with insurance
And no matter how much you spent on repairing the car as a whole
Sometimes the insurance company will not give you the full amount
This difference is due to the "depreciation factor"
Depreciation is the loss of value due to wear and tear over time
in different parts of the vehicle over time.
Therefore, the insurance company reduces the value of spare parts due to depreciation
Then the company pays the rest of the value to you
We generally talk about most of the plastic parts in your car
Less than 50% is considered depreciation
Fiber portions are considered to be less than 30% of consumption.
This means that the company will not pay for the depreciation of the component.
So, let's say your outlay is Rs 100
The insurance company will pay you somewhere around 70 rupees.
The rest is 30 rupees. Entering the same depreciation loss.
To cover this gap, many types of "extras" have been launched by insurance companies
"Extras" means that you get additional benefits on your policy by paying an additional amount.
The most common 'extras' were 'no depreciation'
which is also called "Zero Dep" or "Nil Dep"
Zero depreciation means that during the first five years of your car
No depreciation will be considered due to zero Dep.
It is only available for the first 5 years
Beyond that, most companies do not offer Zero Dep
So in case of any damage, almost all amount is paid by the insurance company.
Many add-ons are available in the market.
So whenever you choose first-party insurance
Then check with the insurance agent/location
What risks/benefits will be covered under the policy.
If my content is good, please support me by subscribing to my channel
Without any doubt.