Things Covered In An Own-Damage Car Insurance Policy
Updated On Oct 15, 2023
Holding a basic car insurance cover is not sufficient and purchasing an own-damage cover is also important. Let’s understand the things that are covered under an own-damage car insurance.
If you are looking to buy a car or already own a car, then you should make yourself acquainted with the basic and compulsory car insurance along with the own-damage car insurance cover as soon as possible. In India, to hold at least a third-party car insurance is a compulsion, not an option, according to the Indian Motor Tariff. The basic insurance cover is designed by the Insurance Regulatory and Development Authority of India (IRDAI) and is the same across all the insurance companies. The third party covers only the financial liabilities incurred towards the third party, which makes your car remain uninsured. Hence, you need to choose the best own-damage cover for your car as it is available with different coverage, hence, its premium also varies from insurer to insurer.
What is Own-Damage Car Insurance?
Standalone own-damage car insurance is a plan which provides coverage for the damages or losses incurred by your own car caused due to accident, mishap, fire, theft, natural calamities, and man-made disaster. The standalone own-damage cover is applicable only if you hold third party insurance already. It was introduced alone without comprehensive insurance cover for people who have the basic cover and just wanted to buy a cover to protect their car from damages too. So, with this standalone own-damage car insurance cover, nobody now needs to wait for renewal to upgrade their basic policy to comprehensive car insurance to insure their car.
Things Covered in An Own-Damage Car Insurance Policy
Own damages are those which are incurred by your car which could be of multiple types and caused due to several reasons. Below is the list of things that are covered under own-damage car insurance:
- Accidental Damages – The own-damage car insurance plan offers compensation for the damages that are caused to your car due to an accident or a collision. The car insurance company will pay the amount of repair expenses either directly to the network garage in case of cashless service or to the car owner in case of reimbursement claim settlement.
- Theft of Car – The own-damage is designed to compensate for the loss that is caused due to the theft of your car. You could suffer a huge and unbearable loss if your car gets stolen, hence, in such a situation the own-damage car insurance can rescue you with financial assistance.
- Fire Damage – In case your car gets damaged due to an accidental fire, then own-damage car insurance coverage will provide compensation for it. No matter due to which reason your car caught fire, the coverage up to the specified limit will be offered by the insurance company.
- Natural Calamities – Natural calamities can occur anytime and they can bring huge devastation which could cause damage to your car as well. Holding a standalone own-damage car insurance policy is quite essential to protect your car from calamities like earthquakes, landslides, hailstorm, flood, and so on.
- Man-made Disasters – In a situation of social unrest, nobody could help anyone. Hence, an own-damage car insurance cover is the best way out to secure your car from man-made disasters such as war, riots, vandalism, and so on. With this cover, you can find the peace of mind in the most troublesome events as well.
The standalone own-damage car insurance cover is a must-have for car owners holding a third party insurance cover only. Going through the above-mentioned details, you could find the situations under which an own-damage car insurance plan will offer you the coverage. We hope it will assist you in understanding the significance of the own-damage car insurance policy.