A Guide to Own Damage Insurance

What is Own Damage Insurance? As the name suggests, your own damage insurance covers the damage to your own vehicles. It is usually a part of comprehensive vehicle insurance policies, which also include third-party insurance component. It is designed to protect your insured vehicle from damages, minor or major, as well as theft. Buying it is essential as you cannot predict when your vehicle faces damage.  For instance, someone might throw a stone which accidentally breaks your car’s windshield, or a passerby causes unexpected scratches on your car. The example might sound funny or unreal, but any mishap like this can cause a hefty loss. It is where own damage insurance helps you deal with unforeseen circumstances.  What is Covered under OD Insurance? Damages to Your Vehicle in an Accident The insurance policy covers damages that may occur to your car or bike in case of an unfortunate road accident.  Damages Resulting from Natural Calamities If your vehicle gets damaged during the event of an earthquake, floods or similar others, your own damage insurance cover will pay for the repair services. Theft or Total Loss of Your Vehicle Own damage insurance will compensate you if your car or bike is stolen or is damaged beyond repair in an accident. You must know that you will get benefits based on the limits defined in the insurance policy. So, it is crucial to read on own damage insurance before you buy a policy. Is Stand-Alone Own Damage Insurance Available? Amongst Indian car owners, vehicle insurance is mostly understood between two terms – third party and comprehensive cover. In general, the own damage insurance component is included in most of the comprehensive vehicle insurance policies. On the other hand, a policy without own damage component only offers coverage to what you owe to a third party. So, if your car accidentally collides with that of your neighbor’s, third-party insurance will only pay for his car’s repair services, not yours.  However, renowned insurance companies like Tata AIG offer standalone own damage insurance policies. As per IRDAI’s mandate of September 2019, you can buy standalone own damage policies for your vehicles. It is particularly useful if you have third-party insurance and are waiting for it to expire to purchase a comprehensive policy with own damage cover. It also means that you can have two different policies for your vehicle at the same time, one covering the third-party aspect while the other for own damage cover.

As the name suggests, your own damage insurance covers the damage to your own vehicles. It is usually a part of comprehensive vehicle insurance policies, which also include third-party insurance component. It is designed to protect your insured vehicle from damages, minor or major, as well as theft. Buying it is essential as you cannot predict when your vehicle faces damage. 

For instance, someone might throw a stone which accidentally breaks your car’s windshield, or a passerby causes unexpected scratches on your car. The example might sound funny or unreal, but any mishap like this can cause a hefty loss. It is where own damage insurance helps you deal with unforeseen circumstances. 

Damages to Your Vehicle in an Accident

The insurance policy covers damages that may occur to your car or bike in case of an unfortunate road accident. 

Damages Resulting from Natural Calamities

If your vehicle gets damaged during the event of an earthquake, floods or similar others, your own damage insurance cover will pay for the repair services.

Theft or Total Loss of Your Vehicle

Own damage insurance will compensate you if your car or bike is stolen or is damaged beyond repair in an accident. You must know that you will get benefits based on the limits defined in the insurance policy. So, it is crucial to read on own damage insurance before you buy a policy.

Amongst Indian car owners, vehicle insurance is mostly understood between two terms – third party and comprehensive cover. In general, the own damage insurance component is included in most of the comprehensive vehicle insurance policies. On the other hand, a policy without own damage component only offers coverage to what you owe to a third party. So, if your car accidentally collides with that of your neighbor’s, third-party insurance will only pay for his car’s repair services, not yours. 

However, renowned insurance companies like Tata AIG offer standalone own damage insurance policies. As per IRDAI’s mandate of September 2019, you can buy standalone own damage policies for your vehicles. It is particularly useful if you have third-party insurance and are waiting for it to expire to purchase a comprehensive policy with own damage cover. It also means that you can have two different policies for your vehicle at the same time, one covering the third-party aspect while the other for own damage cover.