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The word "First-Party" refers to the person's self. In the case of bike insurance, first-party coverage is the financial safeguard for your bike. But what does that really mean for you as a rider?
First-party bike insurance is not just a policy, but a protective shield that helps you stay stress-free on the road. If your bike is damaged in an accident, stolen, or affected by a natural disaster, this bike insurance covers the loss.
Whether you ride daily or occasionally, understanding this type of insurance can help you avoid unexpected financial stress and make smarter decisions for your bike's safety.
In this blog, we will understand first-party bike insurance and its importance for bike owners.
What is First-Party Bike Insurance?
First-party bike insurance, also known as own damage cover, protects your bike against various risks and damages. It helps you manage repair costs or financial loss if something happens to your vehicle.
Is First-Party Bike Insurance Compulsory?
The short answer is "No". But this does not affect the first-party bike insurance's utility for the bike riders.
As per the Motor Vehicles Act, only third-party insurance is mandatory for every bike owner. Buying first-party bike insurance is strongly recommended because:
- Third-party insurance will not cover damage to your bike.
- Repair costs can be high.
- It gives complete financial protection.
What Does First-Party Bike Insurance Cover?
Below are the main things covered under the own damage bike insurance policy:
- Accidental Damage This insurance covers damage caused by accidents, collisions, or falls. It includes the cost of repairing or replacing damaged parts of your bike.
- Theft or Total Loss If your bike gets stolen, you can claim compensation for your bike. It also covers cases where the bike is damaged beyond repair (total loss). The amount of recovery is usually based on the Insured Declared Value (IDV).
- Fire Damage Any damage caused due to fire, explosion, or self-ignition is covered under first-party bike insurance.
- Natural Calamities Your bike is protected against natural disasters such as floods, earthquakes, cyclones, and landslides.
- Man-Made Disasters It also covers damage caused by events like riots, strikes, vandalism, or other malicious acts.
- Transit Damage If your bike gets damaged while being transported from one place to another, the insurance will cover the loss.
- Repair and Replacement Costs The policy helps in covering repair expenses at network garages. Many insurers also provide cashless repair services, which reduces your out-of-pocket spending.
What is Not Covered Under First-Party Bike Insurance?
First-party bike insurance (own damage cover) offers strong protection, but it comes with certain exclusions. Here is the list of the same:
- Normal Wear and Tear Damage due to regular usage, ageing of parts, or depreciation is not covered.
- Mechanical or Electrical Breakdown Any internal failure of the engine or electrical system without an accident is excluded.
- Riding Without Valid Documents No claim is accepted if the rider does not have:
- Valid driving licence
- RC or insurance documents
- Driving Under the Influence If the rider is under the influence of alcohol or drugs, the insurer will reject the claim.
- Consequential Loss Indirect damages that occur due to negligence or delay (not directly from an accident) are not covered.
- Illegal or Improper Use The damage is not covered if the bike is used for:
- Illegal activities
- Racing
- Purposes not mentioned in the policy
- Third-Party Liabilities First-party insurance does not cover third-party damage or legal liabilities.
- Damage Outside Policy Terms Any loss not mentioned in the policy document or beyond coverage terms will not be accepted.
First-Party vs Third Party Bike Insurance vs Comprehensive Bike Insurance
The difference between first-party, third-party, and comprehensive bike insurance helps you choose the right level of protection:
| Feature | First-Party Bike Insurance | Third Party Bike Insurance | Comprehensive Bike Insurance |
|---|---|---|---|
| Coverage Type | Covers damage to your own bike | Covers damage to the third party only | Covers both own damage + third-party |
| Legal Requirement | Not compulsory | Mandatory by law | Not compulsory |
| Own Bike Damage | Covered | Not covered | Covered |
| Third-Party Damage | Not covered | Covered | Covered |
| Theft Coverage | Covered | Not covered | Covered |
| Natural Disasters | Covered | Not covered | Covered |
| Man-Made Disasters | Covered | Not covered | Covered |
| Add-ons Availability | Available | Not available | Available |
| Premium Cost | Moderate | Lowest | Highest |
| Level of Protection | Medium | Basic | High |
| Best For | Protection of the bike only | For legal compliance | For complete protection |
Benefits of First-Party Bike Insurance
First-party bike insurance gives you financial support when your bike gets damaged. Here are the main benefits in simple words:
- Covers Your Bike Damage: This helps you to pay for repair costs if your bike gets damaged in an accident or any other event.
- Protection Against Theft: If your bike is stolen, you can get compensation based on its value.
- Saves Money on Repairs: Bike repairs can be expensive. First-party bike insurance reduces your out-of-pocket expenses.
- Covers Natural and Man-Made Risks: It protects your bike from floods, earthquakes, riots, and vandalism.
- Cashless Repair Facility: Many insurers offer cashless repairs at network garages, so you do not have to pay up front.
- Peace of Mind: You can ride without worrying about unexpected repair costs or losses.
- Add-on Flexibility: You can increase coverage by adding options like zero depreciation or roadside assistance.
Add-ons Available with First-Party Bike Insurance
Add-ons are available with the standalone bike insurance policy. It enhances the financial coverage for your bike but also affects the first-party bike insurance price. Here are some available add-ons:
| Add-on Name | What It Covers |
|---|---|
| Zero Depreciation Cover | Full claim without deduction for depreciation on parts |
| Engine Protection Cover | Engine damage due to water entry, oil leakage, etc. |
| Roadside Assistance Cover | Towing, fuel delivery, and minor repairs expenses |
| Return to Invoice (RTI) | Full invoice value in case of theft or total loss |
| Consumables Cover | Cost of items like engine oil, nuts, bolts, and lubricants |
| Personal Accident Cover | Financial support in case of injury, disability, or death |
| Pillion Rider Cover | Protection for the co-passenger in case of an accident |
| Accessories Cover | Covers damage to additional bike accessories |
Note: Please go through your policy document for the exact information.
Factors Affecting First-Party Insurance Premium
Here are some of the key factors that affect first-party insurance premiums:
| Factor | Explanation |
|---|---|
| Bike Model | Expensive or high-cc bikes have higher premiums |
| Age of the Bike | New bikes have a higher premium due to their higher value |
| Insured Declared Value (IDV) | Higher IDV increases the premium amount |
| Location of Registration | Metro or high-risk areas usually have higher premiums |
| Add-ons Selected | More add-ons increase the premium |
| No Claim Bonus (NCB) | Higher NCB reduces the premium |
| Usage of the Bike | Frequent use or long-distance riding may increase risk |
| Security Features | Anti-theft devices can help lower the premium |
How to Buy First-Party Bike Insurance?
Visit the website Enter bike details Compare plans Select own damage cover Customize add-ons Pay Get policy
- Step 1: Visit the Website Go to the official Square Insurance website and select Two Wheeler Insurance.
- Step 2: Enter Bike Details Enter your bike registration number or choose “Got a New Two-Wheeler” for a new bike.
- Step 3: Fill in the Required Information Select details like RTO, bike model, variant, and registration year.
- Step 4: Compare Plans Compare different insurance plans based on coverage, premium, and benefits.
- Step 5: Select First-Party (Own Damage) Cover Choose your own damage plan and customise it with add-ons if needed.
- Step 6: Adjust IDV and Add-ons Set the Insured Declared Value (IDV) and select add-ons as per your needs.
- Step 7: Make Payment Pay the premium using UPI, debit/credit card, or net banking.
- Step 8: Get Policy Instantly After payment, your policy will be sent to your email within minutes.
How to Claim First-Party Bike Insurance?
Here are the steps to claim first-party bike insurance:
- Inform the insurer immediately.
- Register the claim with the required details.
- File an FIR in case of theft or major damage.
- Submit documents (policy, RC, licence, claim form)
- Get the bike inspected by a surveyor.
- Repair at the network garage or claim reimbursement.
- The claim is settled after verification.
Disclaimer: Process may vary depending on the insurer and policy terms. Always check your policy document for exact details.
FAQs
First-party bike insurance covers damage to your own bike due to accidents, theft, fire, or natural disasters.
No, it is not compulsory. Only third-party insurance is mandatory by law.
The price depends on factors like bike value, location, add-ons, and IDV.
No, engine damage is covered only if you add engine protection cover.
Yes, you can buy it as a standalone own damage policy.
Yes, it helps you avoid high repair costs and gives better protection for your bike.
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