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What is Own Damage Insurance for Car/Bike & How It Works?
Now protect your own vehicle against damage or loss due to accidents, theft, or natural calamities with Standalone Own Damage Insurance. Ideal for overall vehicle protection when bought with third-party insurance, Standalone OD Insurance ensures peace of mind and financial security in unexpected incidents.
Own Damage Car Insurance protects your own car from damage and loss while Own Damage Bike Insurance protects your own two-wheeler. Know everything about Own Damage insurance to make an informed choice!
Table of Contents
What is Own Damage Insurance?
As the name suggests, an Own Damage Insurance is a customized motor insurance policy designed to protect you and your insured vehicle from your own damages, i.e. damages and losses caused to your own vehicle due to accidents, natural calamities, thefts, fir, and more.
Standalone Own Damage insurance is often included as part of a comprehensive insurance policy but can also be purchased separately, if you already have an active third-party insurance policy.
Let’s understand with the help of an example.
Let’s say your car is parked at its usual place and suddenly the tree beside lets down one of its branches or worse, your neighbor's cricket ball attacks one of its windows and the ultimate, a coconut falls and leaves not only shackles but dents too!
Funny as a story but, hefty losses in retrospection, in real life! In such situations, OD insurance is one that could help you get out of such unfortunate troubles.
Is Own Damage Insurance Mandatory for All Motor Vehicles?
While having at least a third-party insurance is mandatory by law in India, Standalone Own Damage Insurance is not mandatory. Also, only those vehicle owners who already have a third-party policy can buy OD insurance.
However, it is highly recommended to have OD insurance as it provides coverage for damage to your own vehicle, offering additional protection beyond third-party insurance provides.
What is the Eligibility to Buy Own Damage Insurance Policy?
Since September 2018, insurance companies can offer standalone Own Damage Insurance policies for cars and two-wheelers that already have only a third-party car or bike insurance in place.
For example, many car or bike owners who have bought long term third-party policies at the time of purchasing their vehicle can now opt for Standalone OD insurance too to cover for own damages and losses as well.
Here’s the eligibility of OD plan for different types of motor insurance:
Note: When you buy an OD insurance, you agree that you already have a valid third-party policy (as made legal by the Indian Motor Laws) in place. This could be one from Digit Insurance, or a different insurer too.
What's Covered in Own Damage Insurance?
Here’s what all is covered in Own Damage insurance:
Damages to Your Vehicle in an Accident
Covers for the damages caused to your car or bike in case of an accident or collision.
Theft of Your Vehicle
Will compensate for you in case your car or bike is unfortunately stolen.
Losses Caused to Your Vehicle in a Fire
In case there’s a fire and your car or bike is damaged due to the same. Your own damage cover will cover for it.
Damages to Your Vehicle due to a Natural Calamity
No one can stop nature’s many furies but in case your car or bike is damaged due to it, we will be your one-stop for damage control.
What’s Not Covered?
While an Own Damage cover is great for your vehicle’s protection, here are few exceptions.
Third-Party Liabilities
This is a standalone Own Damage Insurance policy. Therefore, your third-party liabilities won’t be included in this. Your third-party vehicle insurance will instead take care of the same.
Drunk Driving or without a Licence
This goes against the law, therefore claims won’t be covered if you were driving drunk or without a valid driving licence.
Driving without a Valid Driving Licence Holder
You hold a learner’s licence and were driving without a valid driving licence-holder in the front passenger seat.
Add-Ons Not Bought
This is pretty obvious, isn’t it? If you haven't bought specific add-ons, you won’t be able to benefit from them. For example, without opting for a tyre protect cover- your tyre will only be protected during accidents and not beyond that.
Consequential Damages
Consequential damages refer to damages that take place after an accident. Unfortunately, those won’t be covered unless the damage has happened during the accident itself.
Contributory Negligence
In simple terms, this means your vehicle won’t be covered if you’ve done something you weren’t supposed to do. For example; if your city was already flooded and you still took your car or bike out in the floods.
Add-Ons Available with Own Damage Insurance
Get better coverage for your vehicle with these add-on covers available with Own Damage Motor Insurance policy.
Zero Depreciation Cover
Ideal for vehicles less than 5 years old, zero depreciation cover allows you to nullify the depreciation charged on your vehicle and its parts and gives you the full value of repairs, costs and replacements during a claim.
Return to Invoice Cover
In case of theft or damages beyond repair, return to invoice add-on gives you the benefit of getting back the complete amount of your vehicle's invoice value, including the cost of registering a new vehicle and its road tax respectively.
Tyre Protect Cover
Generally, tyre damage isn't covered in standard insurance unless the damage takes place during an accident. That's why this tyre protect add-on gives you the benefit to safeguard and cover for tyre damages such as tyre bursts, bulges or cuts during all other situations possible.
Breakdown Assistance
We all need a little help sometimes! Our Breakdown Assistance Add-On gives you the benefit of taking help whenever required, i.e assistance during vehicle breakdowns at any time you'd like. The best part? It doesn't even count as a claim!
Consumable Cover
A consumable cover gives your vehicle an additional layer of protection. It covers the cost for all your vehicle's nitty-gritties, such as the engine oils, screws, nuts and bolts, grease, etc in a situation of an accident.
Engine and Gear-box Protection Cover
Do you know that the cost of replacing your engine is approximately 40% of its cost? In a standard motor insurance policy, only damages caused during the accident are covered. However, with the engine and gear-box protection cover, you can specifically cover for the life of your vehicle (the engine and gearbox!) from any consequential damages caused post the accident.
Daily conveyance benefit
The Daily Conveyance Benefit add-on offered by insurers ensures that policyholder gets compensated for daily transport in the form of a fixed daily allowance or a standby vehicle for the time when the insured vehicle is in the garage for repairing.
EV Shield Add-on Cover
This EV Shield add-on cover in India will protect you and your vehicle against any loss or damage to the electrical panel for the vehicle charging point, vehicle charger including charging cable, and offer roadside assistance services specific to EVs.
Add-ons Available with Own Damage Car Insurance Policy
Key and Lock Protect
The cost incurred by the policyholder for repairing or replacement of the lockset in the car in case of theft, loss or damage is covered by the insurer as part of the Key and Lock Protect add-on cover.
Loss to Personal Belongings
If the policyholder or any immediate family member suffers from any loss of personal belongings specified as per the policy when kept in the insured vehicle, it shall be compensated by the insurer.
Pay as You Drive Cover
Pay as you drive cover makes the policyholder eligible to avail discount on the premium of Own Damage cover of the base policy based on the opted plan. The option to top up kilometers is also offered under the base policy by paying additional premium.
Insurance Plans That Fit Your Needs
Third Party
A Third-party insurance is one of the most common types of vehicle insurance; in which only damages & losses caused to a third-party person, vehicle or property are covered.
Comprehensive
A Comprehensive insurance is one of the most valuable types of vehicle insurance that covers both third-party liabilities and damages to your own vehicle as well.
Own Damage
An Own Damage Insurance is for yourself; it covers loss and damage only to your own vehicle in case of accidents and collisions, natural calamities, fires, and thefts.
Difference Between Third-party vs Comprehensive vs Own Damage Insurance
Third-Party
Comprehensive
Own Damage
|
Damages/Losses to own car due to an accident |
×
|
✔
|
✔
|
|
Damages/Losses to own car in case of fire |
×
|
✔
|
✔
|
|
Damages/Losses to own car in case of a natural calamity |
×
|
✔
|
✔
|
|
Damages to Third-Party Vehicle |
✔
|
✔
|
×
|
|
Damages to Third-Party Property |
✔
|
✔
|
×
|
|
Personal Accident Cover |
✔
|
✔
|
×
|
|
Injuries/Death of a Third-Party Person |
✔
|
✔
|
×
|
|
Theft of your car |
×
|
✔
|
✔
|
|
Customize your IDV |
×
|
✔
|
✔
|
|
Extra protection with customized add-ons |
×
|
✔
|
✔
|
Know more about the difference between comprehensive and third party insurance
How to Buy Own Damage Insurance Online with Digit?
Step 1
Go to Digit’s app or website, enter your vehicle’s registration number and provide other details as required.
Step 2
Choose the Standalone Own Damage plan and purchase the add-ons, if required.
Step 3
Enter your personal, nominee and vehicle details.
Step 4
Complete the payment and mandatory KYC verification process.
Step 5
You’re done! You’ll receive the policy document via email, SMS and WhatsApp.
Documents Required to Buy Own Damage Policy Online
To buy Own Damage insurance online, you need to furnish the following documents:
- Car/Bike Registration Certificate
- Previous year Own Damage insurance policy, if applicable
- Any of these documents for KYC verification - PAN/Aadhar/DL/Voter id/Form 16/Passport
How to File an Own Damage Claim with Digit App?
To know how to file for Standalone Own Damage insurance, follow these steps:
Step 1
Download the Digit app and go to ‘File Motor Claim’ option.
Step 2
Provide all the required details related to accident and damage.
Step 3
Enter your personal details and click on ‘Register Claim’ button.
Step 4
That's it! Your claim has been registered successfully, and you will receive the next steps on your email and WhatsApp.
Who Should Buy Own Damage Insurance?
Why Should You Get Own Damage Insurance?
Here are the benefits of Own Damage insurance:
Protects Your Own Vehicle
Standalone OD insurance policy covers your vehicles' own damage or loss, meaning that you and your vehicle will be protected in case of natural calamities, theft, fire, and accidents.
Financial Protection
OD cover also financially protects you and your vehicles and compensates you for repair or replacement costs for your vehicle in case of any unfortunate event.
Customizable Add-ons
With OD insurance, you can also customise your policy by purchasing add-ons for enhanced coverage tailored to your needs.
Affordable and Flexible
Standalone Own Damage insurance is an affordable insurance plan that protects your own vehicle, while also offering you the flexibility to choose a policy term that suits your needs.
What is Own Damage Premium?
Own Damage Premium is the amount you pay for your OD insurance to protect your own vehicle from damage caused by accidents, theft, fire, or natural disasters. The premium price for the same is usually determined based on the type of vehicle you own; how old it is and the city you use it in.
However, no matter what your premium price is, every OD insurance policy offers you protection from the following:
- Accidental damage caused by external means
- Burglary, theft and housebreaking
- Fire, explosions, implosions, lightning, and self-ignition
- Natural calamities like floods, typhoons, cyclones, hailstorms, etc.
- Earthquake, landslide and rockslides
- Transit of vehicles by rail, road, air, or inland waterways
- Terrorism attacks, riots and strikes, or malicious damage
How is Own Damage Premium Calculated?
Own Damage premium can be easily estimated using an online Car Insurance Premium Calculator or a Bike Insurance Premium Calculator for your desired vehicle.
Here’s the mathematical computation of the Own Damage premium.
- OD Premium: IDV X [Premium Rate (decided by insurer)] + [Add-Ons (e.g. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)]
- IDV: Showroom Price of the Vehicle + Cost of Accessories (if any) - Depreciation as per (IRDAI)
What are the Factors Affecting Own Damage Premium?
The Own Damage Premium for both four-wheelers and two-wheelers varies depending on the following factors:
Make, Model and cc of Vehicle
The type of your vehicle also determines your own damage premium. The more high-end your car or bike is, the higher would be its OD premium.
Age of the Car
Since vehicles depreciate and lose their value over time, the older your vehicle, the lower will be your own damage policy premium.
IDV
One of the main factors that determines your OD premium is the Insured Declared Value of your vehicle, which is the current market value of your vehicle. The higher the IDV, the higher the premium.
No Claim Bonus
NCB in car insurance allows you to reduce your OD premium if already have an Own Damage cover and have made no claims in the previous policy terms.
Location
The RTO location of your vehicle or the city in which you drive your vehicle also affects the premium. Driving in a big city with higher traffic and accident rates will cost you more.
Add-ons Opted
The more add-on you buy with the Standalone Own Damage policy, the higher will be your premium.
How to Reduce OD Insurance Premium?
Increase Voluntary Deductibles
In an OD insurance, there’s something known as Voluntary Deductibles, which refers to the amount of money you choose to pay during claims. Therefore, based on your feasibility you can increase the percentage of your voluntary deductible, which will directly reduce your OD premium.
Declare Correct IDV
With Digit, you are given the option to customize your IDV yourself. Therefore, make sure your IDV is always right since this will affect both your OD premium and your claim amounts too during claim settlements.
Don’t Forget to Transfer your NCB
If you’ve had an Own Damage or Comprehensive Motor Insurance policy before, ensure you transfer your NCB to your current policy, to get your accumulated discount.
Difference Between Third-Party Premium and Own Damage Premium
Here are the differences between Own Damage premium and Third-Party premium:
Which Motor Insurance Policy Should You Get?
This all depends on the kind of coverage and protection you want, both for your vehicle and your pocket! Your best bet would be to go for comprehensive insurance policy as it covers both the mandatory, third-party losses and damages and your own damages as well.
However, if you already have a valid Third-Party Insurance, you can simply go for an OD insurance to get complete coverage for your respective vehicle.
The total amount of coverage offered, at the time of claim, will depend on the conditions specified in the policy and obviously your insurance plan. Every year the extent of coverage and own damage premium changes because the value of the vehicle depreciates.