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Own Damage in Motor Insurance
Own damage insurance protects your vehicle financially against damages and losses of all types. This coverage keeps your car safe from accidents, theft, fire, and both natural and man-made disasters.
Your vehicle gets protection against multiple scenarios with an own damage policy. Natural calamities like floods, earthquakes, and storms can't harm your car financially. Your car stays protected from man-made events like vandalism, riots, and terrorist attacks too.
The Insurance Regulatory and Development Authority of India (IRDAI) made standalone own damage policies available in 2019. Vehicle owners can now buy this coverage separately. New cars come with this policy bundled with third-party insurance. You need to renew the policy every year to keep your protection active.
You can get your money back in two ways with own damage insurance - either through reimbursement or cashless repairs at network garages. Your policy covers repair costs like a damaged car door that costs ₹5,000 through either payment option.
Some situations don't get coverage under this policy. You won't be covered if you drive under alcohol's influence, without a valid license, or face mechanical and electrical breakdowns. The policy doesn't cover third-party liabilities or your vehicle's natural wear and tear.
Benefits of OD in Insurance
Own damage insurance offers several financial benefits to vehicle owners. We selected this coverage because you can buy it separately from third-party insurance.
The cost makes it a great choice for many car owners. You can renew it yearly to manage premium payments better. The premiums are lower than what you'd pay for detailed insurance policies.
This policy comes with great perks like No Claim Bonus (NCB). Your premium goes down at renewal time when you don't make claims. On top of that, it protects you from repairs that can get pricey due to accidents, natural calamities, and theft.
One of the most important benefits is knowing how to boost your coverage with add-ons.
These optional features include:
The personal accident cover pays up to ₹15 lakhs for accidental injuries and medical costs. You can compare different insurers' plans online and pick coverage that fits your budget and needs perfectly.
Own Damage(OD) VS Third party(TP) Insurance
Learning the difference between Own Damage (OD) and Third Party (TP) insurance will help you make better coverage decisions. The law requires TP insurance, while OD insurance remains optional.
Here's a clear comparison of both insurance types:
| Aspect | Own Damage Insurance | Third Party Insurance |
|---|---|---|
| Coverage | Protects against vehicle damage, theft, accidents, natural calamities | Covers third-party injuries, death, property damage |
| Legal Status | Optional | Mandatory |
| Customization | Allows add-ons | No customization options |
| Validity | One-year term | Three years for new cars |
| Claims | Based on vehicle inspection and documentation | We handled third-party compensation |
TP insurance provides unlimited compensation for death cases but limits property damage coverage to ₹7.5 lakhs. Many vehicle owners choose both coverages to get complete protection. These policies have different customization features. OD insurance lets you improve protection with add-ons like zero depreciation and roadside assistance. TP coverage keeps standard features without modification options. Rules about standalone purchases are quite different. You need an existing third-party policy to buy OD insurance. This rule will give a foundation of third-party liability protection when adding own damage coverage. Policy duration works differently too. OD coverage needs yearly renewal, and new cars must have three-year third-party insurance. This setup maintains steady third-party protection while giving flexibility in own damage coverage choices.
Why you should buy own damage car insurance
Own damage insurance for your vehicle makes financial sense in many ways. We noticed that vehicle repair costs keep rising and can put a huge dent in your budget without proper coverage. A small fender bender or paint scratch could set you back thousands of rupees, so insurance coverage will give you peace of mind.
Vehicle owners often face unexpected situations that damage their cars. These events happen without warning - from parking lot mishaps to weather damage. Having own damage coverage means you won't struggle with big repair bills or replacement costs.
Standalone own damage policies are a great choice because of their flexibility. You can pick coverage that fits your needs without paying for features you don't need. This way, you can spend wisely on insurance while your vehicle stays protected.
To name just one example, see how own damage insurance helps in real situations. Your parked car might get hit by a falling tree branch, face theft attempts, or get accidental scratches. These repairs would drain your savings without proper coverage and mess up your financial plans.
Add-ons are a great way to improve your protection. Zero depreciation coverage and roadside assistance make your policy work better. Own damage insurance protects you from sudden money troubles and lets you drive worry-free.
Conclusion
Own damage insurance is a vital shield that protects you from unexpected vehicle expenses. Your vehicle gets complete protection from accidents, natural disasters, theft, and other risks that could drain your finances.
Standalone policies give you flexibility to customize coverage based on your needs at affordable rates. The protection gets stronger with add-on features that cover everything from zero depreciation to roadside assistance. Premium management becomes simple and rewarding with annual renewals and benefits like No Claim Bonus.
Third-party insurance meets legal requirements. Adding own damage coverage creates a complete protection package for your vehicle. This combination keeps both your car and finances safe from unexpected events.
Your vehicle deserves complete protection! Visit https://basketoption.insure/motor-insurance, a leading insurance broker in bangalore, helps you learn about Own Damage Insurance. Our expert advice and competitive quotes will keep your vehicle protected. Contact us today! Smart vehicle owners know that own damage insurance is worth the investment when damage occurs unexpectedly. You get peace of mind instead of dealing with sudden repair bills or replacement costs. Your vehicle stays protected reliably against life's uncertainties.
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Frequently asked question
Understand your insurance policy options. Identify the best value. Enjoy peace of mind.
?What does own damage insurance cover
Own damage insurance covers your vehicle against various types of damages, including accidents, theft, fire, natural calamities like floods and earthquakes, and man-made incidents such as vandalism and riots.
?Is own damage insurance mandatory
No, own damage insurance is not mandatory. However, third-party insurance is required by law. Own damage coverage is optional but provides additional financial protection for your vehicle.
?How does own damage insurance differ from comprehensive insurance
Own damage insurance specifically covers damages to your own vehicle, while comprehensive insurance includes both own damage and third-party liability coverage. Comprehensive policies are typically more expensive but offer broader protection.
?Can I purchase standalone own damage insurance
Yes, you can buy standalone own damage insurance, but only if you already have an existing third-party insurance policy for your vehicle. This option was introduced by IRDAI in 2019 to provide more flexibility to vehicle owners.
?What are the benefits of having own damage insurance
Own damage insurance provides financial protection against costly repairs, offers flexibility in policy selection, and allows for customization through add-ons like zero depreciation cover and roadside assistance. It also includes perks such as No Claim Bonus, which can reduce your premium during renewal for claim-free years.
