As the name suggests, this policy covers your own damage to the bike during any mishap. A standalone own damage bike insurance is a type of two-wheeler insurance plan where it helps you stay covered against damage caused to your own bike and not the third party who was involved in the accident. In case of an accident, Own Damage Two-Wheeler Insurance policy compensates you for the expenses incurred to repair or replace parts of your two wheeler damaged in the accident.
Disclaimer: The above mentioned prices are for a 2 year old Hero Honda Karizma R 223 CC, registered in Navi Mumbai & previous policy has expired.
Now that you are aware of all the qualities & features of Own Damage Insurance Policy, let's take you through a comparison model, to make you understand the real differences between the different policies available.
Comprehensive Two Wheeler Insurance
Third-Party Two Wheeler Insurance
Own Damage Bike Insurance
The following things are not covered in standalone own damage two-wheeler insurance:
Third Party Liability: Only the losses or damages caused to own vehicle is covered under standalone own damage bike insurance.
Consequential Damages: Damages that have been caused to the bike consequently and not during an accident
Contributory Negligence: In case the policyholder does something on purpose that they were not supposed to do, then in that case their two-wheeler would not get covered.
You must be thinking after all the information shared above, who is going to purchase a standalone own damage two wheeler insurance. So typically, A standalone own-damage cover will compensate the policyholder for losses including accidental damages & man-made disasters. However, the limit to the compensation you can receive depends on the insured declared value of two wheeler. Lets us explain how does IDV work here:
| Vehicle Age | Depreciation Rate |
|---|---|
| 0-6 months | 5% |
| 6 months -1 year | 15% |
| 1-2 Years | 20% |
| 2-3 Years | 30% |
| 3-4 Years | 40% |
| 4-5 Years | 50% |
The premium for OD cover is calculated as a percentage of IDV as decided by the Indian Motor Tariff. The formula to calculate IDV is: IDV = Showroom price of your car + cost of accessories (if any) – depreciation value as per (IRDAI).
Thus, the formula to calculate OD premium amount is:
Own Damage premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (e.g. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)].
Note: As your car grows older, the IDV decreases. The reason being, higher the Insurance Declared Value or IDV, higher the premium and vice versa.
The following steps will help you renew your bike insurance policy with us:
The following are the steps required to file for the bike insurance claim:
1. Inform the Insurance Provider: In case of a mishap make sure to take all the safety measures and then call the insurance provider of your bike as soon as possible.
2. Lodge an FIR: In case your bike is stolen or there is any sort of accident involving others it is crucial to file an FIR at the nearest police station. You will require a copy of the same when filing for an insurance claim.
3. Collect Proof: When you make a claim you need to provide proof of the incident being a genuine mishap. Hence collect as much evidence as you can, take pictures or videos and note down the contact of any bystander who saw the incident as well.
4. Submit Documents: The documents required for the claim process may vary slightly according to your situation and/or insurance provider. The most common documents required are listed above and need to be submitted to the insurance provider to process the claim settlement.
5.Authority Check: After the documents are submitted, the insurance company will schedule a visit with the surveyor. He/She will check the damages to the bike to ensure the damage. The surveyor may ask you questions to make sure to answer them honestly, any discrepancies can lead to your claim request being cancelled.
6. Repairs: After the surveyor approves the claim you can send your bike for repairs. It is best to do this in one of the insurance provider’s network garages. This way the cost of the repair will be compensated directly with the garage with no out-of-pocket costs for you.
The own-damage premium is different for each policyholder. Following are the factors which affect the own-damage premium of your two-wheeler insurance policy:
Age of the vehicle
Cubic capacity
Hiring/personal purpose (Private or public purpose)
Location
Previous claim history
You can make a claim for own-damages under your policy when there is a loss/damage to your two-wheeler due to theft, accident, natural calamity or fire etc.
No, it is not mandatory. However, to get an overall coverage for your two-wheeler, it is suggested that you buy a standalone own-damage policy along with a third party cover.
Yes, theft of a two-wheeler is covered if you opt for a standalone own-damage policy.
No, it is not mandatory for two-wheelers to have own-damage insurance, that only applies to third party insurance. However, it is recommended that every two-wheeler rider also purchase an own-damage cover. This type of insurance offers far wider coverage and will compensate the rider in a time of crisis.
Every insurance policy has an expiry date. Most policies are valid for a year, hence need to be renewed annually. If you forget to renew your two-wheeler insurance on time the policy expires and any NCB that you had accumulated is also lost. Since it is common for policyholders to forget about the renewal due to their busy and hectic lives, insurance providers offer a grace period. Insurance holders have a chance to renew their two-wheeler insurance within 90 days after the expiry date without any losses. However, any delays that occur after this period cannot be helped. The policy will lapse/ expire and can no longer be renewed.
Third party insurance is a compulsory cover for two-wheelers in India. Own-damage covers are not obligatory for two-wheelers. Moreover, the coverage they provide is different from third party insurance. It takes care of own-damage costs rather than third party liabilities. Hence, the two covers complement each other. It is best to purchase an own-damage cover along with your third party insurance for all-round protection.
The premium amount of your own-damage two-wheeler insurance is determined mainly by the Insured Declared Value. The IDV of the two-wheeler is the maximum compensation the insurance provider will give the policyholder in case of a mishap. The IDV takes into account the depreciation rate of the two-wheeler. Hence, the older the two-wheeler the lower the IDV, this affects both the claim amount and the insurance premium. Thus, as your two-wheeler gets older with every passing year the depreciation rate increases making the IDV, claim amount and premium amount lower.
