First-Party Insurance Lawyer

A first party insurance refers to the policyholder or the insured individual in an insurance contract. This party is the one who owns the insurance policy and is entitled to receive benefits or compensation under the terms of the policy in the event of a covered loss or claim.

Also known as comprehensive insurance, full insurance covers a wide range of potential damages, including theft, fire, vandalism, natural disasters, and damage to your own vehicle in an accident. It provides the highest level of protection, including coverage for both the policyholder’s and third-party’s damages. On the other hand, third-party insurance only covers damages or injuries caused to another person (third party) or their property in an accident where you are at fault.

An OD policy, or Own Damage policy, is a type of motor insurance that specifically covers damage to your own vehicle. This includes losses due to accidents, theft, natural disasters, vandalism, and fire. An OD policy provides financial protection for the repair or replacement of your own vehicle in case of covered incidents.

First-party claims are made when the policyholder experiences a loss or damage covered by their insurance policy. These can include filing a claim for damage to your own vehicle after an accident under your comprehensive or collision auto insurance, claiming for damage to your home due to a fire or natural disaster under your homeowner’s insurance, or seeking compensation for theft or vandalism under a relevant insurance policy.

First-party risk refers to the potential for financial loss or damage to the policyholder’s own property or assets, which is covered by their insurance policy. It involves risks directly affecting the insured individual or their property rather than liabilities to third parties.