Standalone Own-Damage Vs Third Party Car Insurance
Published On Oct 29, 2020 1:50 AM By InsuranceDekho
Purchasing car insurance is required as well as a wise decision. You should know the difference between standalone own-damage and third party car insurance plan.
Difference Between Standalone Own-Damage and Third Party Car Insurance Plan
Purchasing a car insurance is a required as well as a wise decision. On the basis of coverage there are three types of car insurance policies namely Standalone Own-Damage insurance, Third Party Car insurance and Comprehensive Car Insurance. The first two policies have a variety of differences in terms of coverage and their policy details while the third one is just a combination of them. Let’s read all about them in detail.
What is a Standalone Own-Damage Car Insurance Plan?
Earlier, it was not possible to purchase a Standalone Own-Damage policy, and Own Damage cover was available only as part of a standard comprehensive insurance policy, alongside Third Party coverage. But now, in accordance to the new IRDAI (Insurance Regulatory and Development Authority) guidelines, it is possible to purchase this cover separately, even from a different insurance provider to your Third Party insurance policy. In such a scenario, it is known as Standalone Own-Damage car insurance.
What Does it Cover?
The coverage offered by this plan is for any damage incurred by your car. This policy is applicable in events including accidents, natural calamities, man-made disasters, theft, fire, riot, strikes, etc.
Can Add-Ons be Purchased With This Cover?
Yes, add-on covers can be purchased alongside a standalone own damage policy to strengthen the coverage available to you.
What is a Third Party Car Insurance Plan?
A Third Party car insurance plan, also known as a Liability Only plan, is mandatory by law. It offers coverage for damages incurred by any third party that would be involved in an accident with your car.
What Does it Cover?
It covers the damage to property of a third party involved in an accident by your car and also covers the medical expenses incurred by them. It does not cover damage caused to your own car and nor does it cover the damage caused in accidents that do not involve any third party, for example, in natural calamities.
Can Add-Ons be Purchased Alongside?
No, add-on coverages are only available to be purchased alongside comprehensive insurance policies or standalone own-damage insurance policies.
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These two types of insurance plans thus have a variety of differences. It is important to properly familiarise yourself with the policy documents when purchasing insurance for your car to ensure that you have purchased the best possible insurance product for your needs.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.