What is First-Party Car Insurance and What Does It Cover?

What is First-Party Car Insurance?

First-party car insurance covers loss or damage to the policyholder’s own vehicle from specified risks such as accidents, theft, fire, and natural calamities. It is generally linked with Own Damage (OD) insurance. The first-party car insurance price may vary based on factors such as the car’s IDV, age, make and model, location, add-ons, and applicable No Claim Bonus.

Benefits of First-Party Car Insurance

The key first-party car insurance benefits relate to financial protection against losses involving the insured vehicle. These include:

• Protection Against Accidental Damage: The policy can cover repair costs arising from covered accidents.

• Protection Against Theft: If the vehicle is stolen and declared a total loss under the policy, settlement is generally based on the applicable IDV.

• Cover Against Natural Calamities: Events such as floods, earthquakes, and storms can be covered as specified in the policy.

• Protection Against Fire: Loss or damage caused by covered fire-related events may be insured.

• Scope for Add-ons: Policyholders can choose additional covers, such as and Engine Protection, subject to availability and policy conditions.

• NCB Benefits: Eligible claim-free policy periods can result in an NCB that may reduce the renewal premium.

What is the Difference Between First Party vs Third Party vs Comprehensive Insurance Policies?

The three forms of car insurance differ mainly in the risks they cover.

Third-party insurance does not compensate for damage to the policyholder's own car. Standalone OD insurance protects the insured vehicle but requires valid third-party insurance separately. Comprehensive insurance combines both types of protection in one policy.

What are the Inclusions of a First-Party Car Insurance?

First-party protection generally includes specified damage or loss caused by:

1. Road accidents and collisions
2. Theft of the insured vehicle
3. Fire, explosion, or self-ignition
4. Floods, earthquakes and other covered natural calamities
5. Damage during transit, where covered under the policy
6. Total loss or constructive total loss, subject to applicable conditions and IDV

Add-ons can extend the scope of protection. Zero depreciation, engine protection, roadside assistance, and NCB Protection are examples of optional covers that may be available for eligible vehicles.

What are the Exclusions of a First-Party Car Insurance?

A first-party policy does not cover every type of loss. Common exclusions can include:

1. Normal wear and tear and depreciation, unless an applicable car insurance add-on provides otherwise
2. Mechanical or electrical breakdowns unrelated to an insured event
3. Damage caused while driving without a licence
4. Loss arising from driving under the influence of alcohol or drugs
5. Consequential losses that are not directly covered by the policy

How to Buy/Renew First-Party Car Insurance?

To buy or renew a first-party policy through Jio Insurance, enter the required vehicle details and review the available insurance options. The first-party car insurance price can vary based on the vehicle profile, IDV, location, NCB, and selected coverage.

Compare the available plans and check the coverage, deductibles, exclusions, and add-ons before selecting a policy. Existing policyholders should also check the expiry date and renew on time to avoid a break in coverage. Jio Insurance provides access to multiple motor insurance options, allowing customers to compare plans and select suitable coverage.

How to File a Claim under First-Party Car Insurance?

The claim process generally starts by notifying the insurer as soon as possible after an insured incident. The policyholder may need to provide the registration certificate, driving licence, photographs of the damaged vehicle, and an FIR where required.

The insurer may arrange an inspection or survey to assess the damage. Once the claim is assessed and approved according to the policy terms, the insurer processes the eligible settlement. For motor claims sourced through Jio Insurance Broking, support can be provided during the car insurance claims process, while the respective insurer remains responsible for accepting, rejecting, and settling the claim.

Why Choose Jio Insurance for First-Party Car Insurance?

Jio Insurance Broking Ltd. enables customers to explore and compare motor insurance plans from multiple insurers. This can help car owners review different coverage options, premiums, deductibles, and add-ons before making a decision.

Customers can use the platform to buy or renew car insurance online and manage their policy requirements digitally.

Get the Right Coverage for Your Car Today

First-party car insurance can provide important financial protection for damage or loss involving your own vehicle. It generally covers risks such as accidents, theft, fire, and specified natural or man-made calamities, subject to policy terms and exclusions.

Jio Insurance Broking Ltd. allows customers to explore motor insurance plans from multiple insurers and select coverage based on their requirements.

Frequently Asked Questions