First Party Car Insurance
First Party Car Insurance
Cruising the intricate web of Indian highways unlocks a wealth of cultural adventures. However, unexpected misadventures can strike, leaving your prized possession in need of repair. This is where first-party car insurance steps in. It offers mental satisfaction and financial security.
This guide will be your compass through the intricacies of first-party car insurance in India, outlining its advantages, coverage options and how it shields your vehicle.
So, fasten your seatbelt and get ready to discover how to keep your car safe on every adventure!
First-Party Car Insurance: Explained
A first-party car insurance coverage is also widely known as comprehensive car insurance. During an unforeseen incident, the first-party car insurance protects the policyholder from any harm inflicted upon their vehicle. This coverage applies when the insured suffers a financial setback related to their own car.
It is mandatory for all vehicle owners to carry a minimum personal injury benefit of ₹15 lakh, as per IRDAI after an order was passed by the Madras High Court in September 2018. This coverage can be bundled with car insurance or purchased separately.
Therefore, a first-party car insurance policy functions as a three-layered shield. It protects the insured from financial responsibility towards third parties, damage inflicted upon their vehicle and even personal injuries sustained during an accident while operating the insured car.
Features and Advantages of First-Party Car Insurance
Listed below are some advantages and features of obtaining first-party four-wheeler insurance:
Covers Financially and Legally
A first-party car insurance policy acts as a safety net. It provides both financial and legal safeguards for the policyholder. It fulfils the legal requirement by including third-party liability coverage and offering financial protection against damages sustained by the insured four-wheeler.
Personal Accident Coverage
First-Party motor insurance policies offer an additional layer of security through personal accident coverage of ₹15 lakhs. This benefit provides financial support to the policyholder in case of accidental death or permanent disability while driving the insured vehicle.
Add-on Covers
First-party car insurance offers a solid foundation, but you can customise your protection further with optional add-on covers. These add-ons enhance your base policy, providing additional financial security and extending coverage to vehicle parts not typically included in standard plans.
Popular add-on options include zero depreciation, engine protection, consumable protection, accessory coverage and more.
No Claim Bonus
First-party car insurance incentivises safe driving through a No Claim Bonus (NCB) program. By avoiding filing claims during your policy period, you earn a discount on your premium renewal. This discount can accumulate up to 50% over five claim-free years. It provides significant savings on your car insurance costs.
Difference Between First-Party and Third-Party Car Insurance
A first-party car insurance policy is different from a third-party car insurance plan in the following ways:
| Parameters | First-Party Car Insurance Policy | Third-Party Car Insurance Policy |
|---|---|---|
| Meaning | This policy protects the insured (policyholder) for damages caused to others (third-party liabilities) and for repairs or replacements to their vehicle. | This policy safeguards the policyholder solely against financial obligations arising from an accident involving a third party (someone other than the policyholder and the insurer). |
| Legal Requirement | This coverage is not compulsory under the regulations governing motor vehicles. | In contrast, a third-party insurance policy is absolutely essential by law. |
| Scope | This type of insurance offers a wider range of protection. It includes the insured party (policyholder) and any other party involved (third party) in an accident. | This policy has a narrower focus. It solely covers injuries and damages sustained by a third party (not the policyholder or the insurer). |
| Additional Covers | This type of insurance allows for expanded coverage through additional riders. These add-ons provide further financial safeguards. You can opt for Engine Secure, Roadside Assistance, Return to Invoice, Zero Dep insurance and so on bundled with your first-party car insurance plan. | This policy offers a more streamlined form of protection and does not include the option to add supplementary coverage. |
| Claim Settlement Beneficiary | In the event of a claim, the insured party (car owner) is the ultimate beneficiary (final claimant) of the compensation. | For this type of insurance, the claimant receiving the compensation is solely the third party who suffered damages caused by the insured vehicle. |
| Premium Amount | This type of insurance offers a more extensive range of coverage, which is reflected in the higher premium amount. | In comparison, third-party insurance provides a more basic level of protection, resulting in a lower premium cost fixed by the IRDAI. |
Things Included and Excluded Under a First-Party Car Insurance Policy
While comprehensive car insurance acts as a powerful shield, it is crucial to understand what is included and what is not. Let us dive deeper into the specifics of this policy to ensure you are fully prepared for any situation on the road.
| Things Included under a First-Party Car Insurance Policy | Things Not Included under a First-Party Car Insurance Policy |
|---|---|
| Covers expenses arising from the policyholder's legal responsibility to a third party. | Damages to the insured car are caused by electrical and mechanical malfunction or failure. |
| It includes the compensation for the death of a third party caused by the insured vehicle. | |
| It also covers medical expenses for injuries sustained by a third party individual due to the insured vehicle. | |
| Furthermore, it covers repairs or replacements for property belonging to a third party that was damaged by the insured vehicle. | |
| It covers damage to the insured four-wheeler caused by strikes, riots, vandalism or other intentional acts. | Excludes coverage for any damage sustained by the insured car when the driver was intoxicated or impaired by drugs. |
| Covers damage or loss of the insured car due to break-in, attempted theft or theft. | This exclusion applies to situations where the driver operating the insured vehicle did not possess a valid driving licence. |
| Covers total or partial loss of the insured car due to self-ignition, fire or explosion. | Damages incurred by the insured car outside the designated geographical area covered by the insurance policy are not covered. |
| Covers damage sustained by the insured vehicle while being transported by air, land or water. | Losses to the insured vehicle while being used for a purpose not authorised by the insurance policy (for example, private cars used for commercial purposes) are not covered. |
| Covers damage to the insured vehicle caused by natural disasters such as earthquakes, cyclones, floods, etc. | Gradual deterioration of the insured vehicle due to regular use or ageing is not covered. |
| It covers repairs needed for the insured vehicle after an accident. | Damages arising from war, civil unrest, or nuclear perils are excluded. |
How to Buy/Renew a First-Party Car Insurance Policy?
The road can be a wild card, throwing unexpected bumps and collisions your way. Even the most defensive drivers can encounter mishaps. These incidents can lead to significant out-of-pocket costs for repairs and medical bills.
However, securing or renewing first-party car insurance with Tata AIG guarantees complete support in managing the financial burden through processing valid claims.
Furthermore, if your car collides with another vehicle, you might face substantial costs to compensate the other party. Car insurance purchased or renewed from Tata AIG will shoulder legal and financial responsibility in such situations as well. This allows you to explore the roads with peace of mind.
Apply for our comprehensive car insurance coverage right away! The process is swift and easy if you follow these simple steps:
Head over to Tata AIG's website using your web browser and select the option for "Car Insurance”.
Input your four-wheeler registration number and click on "Get Price" to obtain a brand-new first-party four-wheeler insurance policy. Choose "Renew" if you are looking for first-party car insurance renewal of your existing policy.
Our user-friendly online car insurance calculator will display the insurance cost and coverage details on your screen.
Pick an appropriate Insured Declared Value (IDV) for your car from the available options.
If you have previously filed a claim, update that information. You can still qualify for the No-Claim Bonus discount by maintaining a claim-free history.
You will be presented with the total cost of your first-party car insurance plan and the monthly premium amount.
Once you have chosen the first-party coverage plan that best suits your needs, you can complete a secure online purchase using any digital payment method you prefer.
As soon as you have settled the payment, a soft copy of your first-party four-wheeler insurance policy will be delivered straight to your registered email address or WhatsApp number.
Also Read:
How to File a Claim Under a First-Party Car Insurance Policy?
In order to raise a claim under your first-party car insurance plan, follow the steps outlined below:
The very first step is to inform Tata AIG about the incident. You can do this by calling our toll-free number at 1800-266-7780 or visiting our Claims Support page on our official website.
Have all necessary documents readily available, such as your policy documents, a copy of the FIR (First Information Report) if applicable, and any other relevant documents related to the incident.
Decide whether you prefer a cashless claim or a reimbursement claim. With a cashless claim, Tata AIG will settle the repair bills directly with one of its network garages. For a reimbursement claim, you can get repairs done at your chosen garage and then submit bills for reimbursement.
Tata AIG will arrange for a surveyor to inspect your vehicle and assess the damage. Cooperate fully with the surveyor during the inspection process.
Once the surveyor submits their report, Tata AIG will process your claim based on the policy terms and conditions. You will be kept informed throughout the process.
Upon claim approval, Tata AIG will either settle the repair costs directly with the network garage (cashless claim) or reimburse you for the repairs (reimbursement claim) on your bank account.
Why Choose Tata AIG for First-Party Car Insurance?
As a respected insurance provider, Tata AIG goes the extra mile to deliver a smooth sailing experience for its customers. Here is a glimpse into what makes us a prominent name in India's four-wheeler insurance market:
Impressive Claim Settlement Rates: Tata AIG consistently has a remarkable claim settlement ratio. Notably, our settlement rate surpasses many competitors in the market. We strive to resolve the vast majority of claims filed by policyholders.
Furthermore, Tata AIG is an excellent choice if you prioritise swift claim settlements. We maintain a remarkable claim resolution rate of 99% (as of Fiscal Year 2023-2024).
Widespread Network of Cashless Repair Partners: Tata AIG boasts a massive network of over 6,900 partner garages nationwide for four-wheeler repairs. This means that no matter your location, you will have a Tata AIG network garage conveniently nearby to assist you.
These partnered garages offer a streamlined cashless repair option, ensuring a hassle-free claim settlement process for your peace of mind.
The Tata AIG Legacy: Tata AIG has been a trusted car insurance provider in India for over two decades. The "Tata" name itself has long been synonymous with reliability and security, fostering a sense of confidence among Indian consumers.
Seamless Claim Registration: Unlike traditional methods that require physical verification, Tata AIG empowers policyholders to register claims conveniently from anywhere in India using their user-friendly web portal. This completely digital approach streamlines the process, saving you valuable time and effort.
Conclusion
First-party car insurance protects you and your car as you drive on Indian highways. It covers you financially and legally, giving you peace of mind with its wide-ranging protection.
Choosing Tata AIG for your first-party car insurance means you benefit from our excellent claim settlement rates, a large network of partnered garages, and our commitment to a smooth customer experience. Drive with confidence – get a quote for Tata AIG's first-party car insurance today!
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
Related Articles
Frequently Asked Question
Other Topics
