Own Damage Car Insurance
What is Own Damage Car Insurance?
Own Damage Car insurance a.k.a. OD Insurance is a motor insurance policy that is intended to safeguard your car against unforeseen own damages. This policy offers car insurance coverage for own damages sustained by your car due to road accidents, fire, natural calamities, or any other mishap. It is designed to give you added coverage apart from the third-party liability.
Own Damage Insurance Vs Comprehensive Car Insurance
Standalone Own-Damage Insurance
Comprehensive Car Insurance
This type of insurance coverage provides coverage for third-party liabilities including bodily injuries, death and property damage. It is compulsory according to the Motor Vehicles Act of 1988.
This type of insurance provides coverage for the damage to the policyholder’s vehicle. It is not compulsory, however, provides greater protection than just third party insurance.
This type of cover provides coverage for both third-party liabilities as well as own-damage costs under a single premium.
Third-party liabilities only
Own-damage costs only
Third-party liabilities and own-damage costs
It is compulsory and without it you can be heavily fined. Additionally, in case you have a mishap you don’t need to worry about the cost.
It covers a number the cost of own damage including natural calamities, vandalism, accidents, total damage and theft. You can purchase add-on covers and receive NCB for this type of cover.
Both third-party liabilities and own damage, Additionally, you will also be eligible for NCb on the own-damage cover and be able to purchase add-on covers.
Higher Premium decreases with time.
Higher Premium accommodates both covers under a single premium. Own-damage cover cost decreases with time.
Not affected by the depreciation rate
Affected by the depreciation rate
Own-damage cover affected by depreciation rate.
Benefits of Own Damage Car Insurance
An own-damage car insurance policy offers the following benefits:
1. No Obligation To Opt for Long Term Comprehensive Plans
New car/vehicle owners are not obligated to buy a long term comprehensive car insurance policy to meet the mandatory requirement of 3-year third party car insurance cover. With a standalone own damage policy, policyholders can opt for a third party car insurance plan for 3 years alongside a standalone damage plan for 1 year, which can be renewed on a yearly basis.
2. Flexibility Regarding Choice of Insurance Company
After the release of the Insurance Regulatory and Development Authority of India (IRDAI) order, where they have allowed the car owners to buy a standalone own damage policy cover other than a third party liability cover, which means that the car insurance policyholders are allowed to opt for different car insurance companies for both the covers.
3. Economical Car Insurance
With the availability of standalone own damage insurance policy and third party liability covers separately, car insurance policies have now become much more affordable for car owners. Additionally, the policyholders can now purchase their own damage policy at the best offered price to add-on to their financial benefit.
Who Should Buy a Standalone Own Damage Insurance?
A standalone own-damage cover will compensate the policyholder for losses including accidental damages, damages due to transit, theft or vandalism, natural calamities and man-made disasters. However, the limit to the compensation you can receive depends on the Insured Declared Value or IDV. The IDV, in turn, is heavily determined by the depreciation rate which gets higher with the car’s age.
How to Calculate Depreciation
The following table explains how the depreciation rate works:
6 months - 1 year
1 - 2 years
Thus with the depreciation rate affecting your compensation value, there are points when after the 5-year mark it may make more financial sense to simply set aside some money for your possible mishap and keep only your third-party insurance updated. However, keep in mind, if your car is new, or an expensive car it makes sense to keep the own-damage cover since the compensation even with high depreciation rates still offers quite a bit of money. Lastly, you can also purchase a zero depreciation cover as an add-on to the existing own-damage plan.
How is the Own Damage Cover Premium Calculated?
There are three main factors that are accounted for when calculating the insurance premium of a standalone own-damage car insurance policy. The car’s IDV, its cubic capacity and the age of the vehicle. However, doing this manually can be a tricky business. Hence, we have a car insurance premium calculator that will do all the work for you.
How to Renew Your Standalone Own Damage Cover?
The following steps will help you renew your car insurance policy online:
Step 1: Visit our website InsuranceDekho
Step 2: Provide your car’s registration number, fuel type and variant to proceed. In case you do not remember these details you can also enter your car’s brand name, model, make and year of registration, city of registration and RTO.
Step 3: Enter the expiry date of the insurance policy of the previous year along with the name of your insurance provider.
Step 4: Fill in the section with your personal details, i.e., name and phone number and select the tenure of your policy. Also, provide the details of any claims you made in the previous year. Next click on ‘Continue’.
Step 5: All the available quotes in your category will be visible on your screen. You can compare them and decide on the policy that is best suited to your needs. At this stage, you can also opt for add-on covers to further strengthen your insurance policy.
Step 6: After you have selected your policy and add-on covers, click on the ‘Buy Now’ button. Make the payment for the selected policy and we will send the policy document to your registered email ID.
How to File for Standalone Own Damage Insurance Claim?
The following are the documents required to file for a car insurance claim:
- Copy of policy document
- Copy of FIR
- Copy of registration certificate
- Original bills of the car’s repair
- Evidence of the mishap
The following are the steps required to file for car 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 car as soon as possible.
2. Lodge an FIR: In case your car 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. Surveyor: After the documents are submitted, the insurance company will schedule a visit with the surveyor. He/She will check the damages to the car 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 car 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.
What is your car's brand?
Factors Affecting Own Damage Car Insurance Premium
Highlighted below are some of the factors that can affect your standalone own-damage car insurance premium:
1. Insured Declared Value of Your Car
The present market value of your car is one of the significant factors in determining the own-damage car insurance premium.
2. Cubic Capacity of Your Car
Cubic Capacity of the engine is also known as your Car’s CC. It directly affects your car’s speed. Hence, the higher is the cc of your car, the higher would be the risk associated, and as a result, the own damage premium amount will also be on the rise.
3. Car Model
Car type and it's model are also significant factors in calculating the premium for your standalone own damage car insurance policy. If your car is high-end, then consequently higher would be the premium for your own damage car insurance policy.
4. Car’s Age
Over time, cars too lose out on their value. Hence, the age of the policyholder’s car is a crucial element that is considered at the time of OD premium calculation. To simplify, the older the car, the lesser would be your Own damage premium.
5. No Claim Bonus
If the policyholder had opted for Own damage cover previously, and has not made any claims till now, then in that case they will have a percentage of NCB benefit in order to reduce their Own damage premium amount.
6. Add-Ons Opted
All the add-ons selected by a policyholder has a price associated. Henceforth, the premium of own damage policy is directly impacted by the types of add-ons you have selected for your own damage car insurance policy.
With the complete details and right information in hand, it gets easier for a policyholder to opt for the best policy based upon their individual requirements. On that note, we sincerely hope that with the afore-mentioned information, you would now be able to opt for an optimum car insurance plan with add-on covers, that would help you in not only protecting your car in the best possible way but also within your budget.
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Standalone Own Damage Car Insurance FAQ
What is the amount of premium for own-damage (OD) car insurance cover?
The own-damage car insurance premium is not same for every policyholder, but different. Here are some factors that impacts the own-damage premium of your car insurance cover:
- Age of the car
- Cubic capacity
- Hiring/personal purpose (Private or public purpose)
- RTO Location
- Previous claim history
Why should I buy standalone own-damage car insurance?
You should consider buying a standalone insurance policy for your car as it offers protection to your vehicle against damages or losses caused due to theft, fire, mishap, accident, etc. If an accident happens, the insurance provider is made to pay for the cost of replacement or repair of the damaged car parts.
What is the renewal process for standalone own-damage car insurance?
You need to follow the below steps for own-damage car insurance renewal:
- Step 1: Visit InsuranceDekho. Compare various insurance plans online and get a quote.
- Step 2: Complete the details as required.
- Step 3: Choose from the available add-ons to increase your existing insurance coverage.
- Step 4: Make the payment. Your policy is renewed.
How to file an own damage car insurance claim?
You can file an own-damage car insurance claim by following the given steps:
- Step 1: After the mishap or accident, immediately inform your insurance provider regarding the damage to your vehicle.
- Step 2: File a claim with your insurer. Insurance companies would then assign a surveyor to assess the damage to your car.
- You can also opt for Self-inspection, where your insurance provider will provide you with all the instructions. Availability of self-inspection facility is subject to the insurance company.
- Step 3: Select the mode of repair you wish to go for i.e cashless service through network garages or reimbursement.
Do I need to buy standalone own damage car insurance cover and third-party car insurance from the same insurance provider?
You can purchase standalone own damage insurance cover and third-party car insurance from the same insurance provider. However, it is not mandatory to purchase it from the same insurance company, you have the flexibility to purchase your own damage cover from any insurance provider you like.
Who is eligible to buy standalone own-damage car insurance?
Individuals, who have bought their car after 1st September 2018 and have a third party insurance plan can purchase a standalone own-damage car insurance cover.
Does own damage cover include personal accident cover?
No, own damage insurance cover by default does not include a personal accident cover. However, it is important to purchase a personal accident cover along with a third party insurance plan.
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