Buying a car has now become easy due to quick availability of loans. However, as a car owner your job does not end up with the buying process, but also maintaining it. Maintaining a car can turn out to be an expensive affair if you end up causing damage often.
An own damage car insurance cover can help you get coverage against damages caused to the car due to theft, natural or man made calamities. You can avail coverage under your own damage insurance by buying a separate third party cover for your car.
Standalone own damage (OD) insurance is a type of car insurance policy that provides coverage against damages caused to your own car. This includes damages caused due to fire, theft, natural calamity, accident, etc. This type of insurance can be purchased as a separate cover and can be bundled with third party cover which is mandatory as per the law.
A standard own damage car cover provides coverage against damages that third party insurance will not cover.
To buy your own damage car insurance premium, you don’t need to wait till the renewal date of your policy or even buy comprehensive cover. You can simply choose to buy this type of car cover anytime you realize that your car requires protection.
You can purchase your own damage cover with a third party policy. Under this type of cover, you get protection against natural and man made calamities and theft too.
Given below is the formula for own damage premium calculation
OD premium = IDV X (Premium Rate) + Add-Ons – Discount and benefits
Here,
IDV = (showroom price of the vehicle – depreciation) + (value of fitted accessories (if any) – depreciation)
Some of the other factors that are taken into consideration while fixing the own-damage premium include the car’s make & type, cubic capacity of the engine and geographical zone.
This type of car insurance provides coverage to third party life and property and does not cover the insured vehicle
This type of car insurance provides coverage to your vehicle as well as third party and property
This type of insurance provides coverage for your car’s damages and losses including events caused due to man made, natural calamities, and theft.
Own damage is a type of car insurance plan that provides cover against damages to your own vehicle and self. A regular third party car insurance coverage policy provides cover only for damages to a third person who is involved in an accident with you.
Own Damage Insurance, also known as Stand-Alone Damage Policy is not mandatory as per the current laws as long as you have a basic third party car insurance plan.
As per the latest notification, the Insurance Regulatory and Development Authority of India (IRDAI) has allowed the issuance of the Stand Alone Damage Policy on an annual basis for both, old and new cars. You can buy OD and Third Party Plans in various combinations and bundles.
The Own-damage premium is calculated after factoring in the IDV, type of vehicle, year of purchase, and geographical zone.
Yes, you can purchase various rider options for a Stand-Alone Damage Car Insurance Plan.
Yes, own-damage insurance policies are optional. Third-party cover is mandatory for all vehicles that run on Indian roads.
Basic car insurance refers to third-party liability insurance. According to the Motor Vehicles Act, 1988, having at least a third-party insurance is mandatory to drive on Indian roads. Third-party insurance covers the loss or damage suffered by the other people and property (third party) involved in the accident, and does not include own-damage cover.
Standalone own-damage insurance is an annual policy.
Own-damage premium is calculated after factoring in the IDV, type of vehicle, year of purchase and geographical zone.
No, an applicant seeking a standalone own-damage policy must ensure that he or she at least has a third-party insurance policy in place. The start and end date of the third-party cover as well as the name of the issuer will be noted down while giving standalone OD policy.
Yes, own-damage insurance policies are optional. Third-party cover is mandatory for all vehicles that run on Indian roads.
