The first-party car insurance policy is popularly known as the own damage car insurance policy. There are mainly 3 types of car insurance policy: own damage car insurance policy, third-party car insurance policy and comprehensive car insurance policy.
First-party car insurance provides wider coverage. It includes repair or replacement expenses for accidents, theft, fire and natural disasters. To further boost the coverage, you can opt for suitable add-ons. Also, before purchasing any policy, understand its benefits, coverage and exclusions. This helps select a plan that suits your car, budget and insurance needs.
What Are the Features and Benefits of First Party Car Insurance?
The primary benefit of first-party car insurance is that it provides personal accident protection for the owner-driver. It gives financial support in case of accidental death or permanent disability. Apart from this, other features of own damage insurance policies from insurance companies such as Bajaj General Insurance are as follows :
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Lower Repair Expenses
Repair or replacement work after a serious accident can hamper your monthly budget. Own damage car insurance helps cover eligible repair costs, so you do not have to pay the entire bill. However, deductibles and non-covered expenses may still apply.
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Flexible Add-On Options
You can further enhance your car insurance policy with suitable riders such as zero depreciation, engine protection, tyre protection and consumables cover. The add-on options depend on the insurer and slightly increase the premium amount.
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No-Claim Bonus Benefits
If you do not make an eligible claim during the policy period, you qualify for a No-Claim Bonus (NCB) on your own-damage premium at renewal. The discount depends on the applicable terms. Ensure to find out how a claim affects accumulated bonus.
What Are the Inclusions and Exclusions of First Party Car Insurance Policy?
When buying insurance, it is essential to know the coverage and exclusions. For example, a first-party car insurance policy covers accidental damage. Whereas a common exclusion is intentional damage. So, while it will provide protection if your car suffers damage in a road accident or collision, it will exclude any damage that you cause to your car deliberately.
Read below to know what are the common inclusions and exclusions of first-party car insurance:
Inclusions
- Natural and Man-Made Disasters
First-party insurance usually covers losses in case of events such as floods, cyclones, earthquakes, riots and vandalism. Verify the list of coverage before making a claim.
- Theft of the Vehicle
If your insured car is stolen, the policy provides compensation depending on the terms. However, the insurer will assess the claim before deciding the payable amount.
- Damage During Transit
Your car may suffer damage while it is transported from one location to another. Review your policy documents to confirm if your insurer provides protection for such situations.
Exclusions
- Breakdown and Wear and Tear
Standard first-party insurance does not cover normal wear and tear as your vehicle ages. Also, problems caused by mechanical failure and electrical faults are excluded.
- Illegal Activities
In case an incident occurs under situations such as driving without a valid licence or driving under the influence of alcohol, your claim may be rejected.
- Uncovered Commercial Use
A private car policy will not cover damage that occurs while you use the vehicle for commercial activities such as deliveries or paid rides.
Final Words
Always compare premiums, coverage limits, exclusions and available add-ons before purchasing a first-party car insurance policy. Also, verify the Insured Declared Value (IDV) as it affects the amount you receive for total loss or theft.
Also, before finalising your decision, research the insurer. Find out about their claim process, customer feedback and claim settlement ratio. But most importantly, read the policy terms thoroughly. A suitable policy should match your car’s value, usage, and protection needs while remaining within your budget.
