What is Own Damage Car Insurance?
Own damage insurance or standalone own damage (SAOD) policy is helpful in case of damages caused to your own car owing to natural calamities such as storms, earthquakes, floods etc. It also covers man-made disasters such as vandalism, riots and terror attacks along with providing coverage for external accidents.
A SAOD policy offers coverage for damages that a third-party policy won't cover. It is a great option for new-vehicle owners to buy their own damage insurance to avoid bearing unnecessarily high costs for minor or major damage caused to their vehicle.
However, own damage insurance for cars can only be purchased along with a third-party liability car insurance. A policyholder who has a third-party car insurance can also purchase this policy additionally to also cover his/her own car from unforeseen damages.
Types of Car Insurance in India
To understand SAOD insurance better, take a look at different types of car insurance policies available in India:
| Third-Party Insurance |
Standalone Own Damage Insurance |
Comprehensive Car Insurance |
| Covers third-party's death/disability/damage and other liabilities |
Covers damages due to natural and man-made hazards |
Covers both third-party liabilities + own damage expenses
Single premium
Add-ons available |
| Not affected by depreciation rate |
Affected by the depreciation rate |
Only OD cover in insurance affected by the depreciation rate |
| It is compulsory as per the Motor Vehicles Act 1988. Fines will be imposed in case the policy is not renewed |
Not compulsory but recommended for wider coverage benefits |
Not compulsory but recommended for wider coverage benefits |
| Add-ons not available |
Add-ons are available |
Add-ons are available |
| Low Premium |
Higher premium but reduced with time |
Higher premium compared to others |
Benefits of Own Damage Car Insurance
As mentioned before, own damage insurance provides the essential protection by covering damages to your own vehicle. Here are some benefits of purchasing Own Damage insurance for car:
- Vehicle owners are no longer obligated to purchase a long-term comprehensive car insurance plan to provide both third-party coverages with OD cover
- Car owners can compare and buy SAOD insurance online from different insurers depending on their budget and benefits
- More affordable and effective for those who can't pay high premiums upfront or cannot afford to buy comprehensive car insurance. Moreover, the standalone OD policy can be renewed annually, which also reduces the financial burden on policyholders.
- Gives the policyholder options to buy add-ons, otherwise not available with only third-party liability cover.
Additional Covers Under Own Damage Car Insurance
A policyholder can also enhance the coverage of his/her SAOD policy by purchasing car insurance add-ons at an extra premium. Some add-ons offered under an own damage vehicle insurance policy include:
- Nil Depreciation Cover
- Consumables Cover
- NCB Protect Cover
- Engine Protect Cover
- Roadside Assistance Cover
- Key and Lock Protect Cover
How Do You Calculate the Premium for Own Damage Insurance?
The premium of SAOD policy for cars is slightly higher than third-party liability but lower than comprehensive car insurance. To calculate and compare the premium of own damage insurance, you can use Car Insurance Premium Calculator. This online tool can help you calculate premium based on your car's model, variant, price and registration year.
Simply enter your car details on the calculator and it will tell your car's IDV as well as your own damage car insurance price. You can also compare the premiums of multiple insurers and choose the one that suits your requirement.
What is the Insured Declared Value (IDV) in OD Car Insurance?
All claims made on a motor insurance policy are entirely dependent on the damage suffered by the car. In case of the total loss of the vehicle, when it cannot be used again, the policyholder will be compensated based on the depreciation value of your vehicle. Deducted based on the number of years the car has been used, IDV is calculated after considering the depreciation rate of the vehicle.
We will simplify the calculation of the IDV through a chart:
| Vehicle Age |
Depreciation |
| Less than 6 months |
5% |
| 6 months-1 year |
15% |
| 1-2 years |
20% |
| 2-3 years |
30% |
| 3-4 years |
40% |
Once the IDV is confirmed, simply multiply the IDV by the premium rate as stated by the car insurance company. The own damage premium can be calculated after making deductions related to discounts and benefits.
How to Buy Own Damage Car Insurance Online?
You can purchase SAOD insurance online from Policybazaar.com in just a few simple steps. Take a look:
- On the homepage, select the 'Car Insurance' page from the 'Insurance Products' dropdown
- Now enter your car number or if you have a new car select the 'Brand New Car' option
- Select your car RTO, model, variant and registration year
- Now fill in the registration form
- Enter previous policy expiry date and claim details if any
- Select the type of plan as 'Own Damage' from the dropdown
- You will not be shown OD car insurance quotes by multiple insurers
- View the plan details, and select the additional covers along with your plan
- Proceed to premium payment
- Once verified, pay the own damage premium amount via desired payment mode
- Once paid, your OD car insurance plan will be issued to you. You will receive your car policy documents at your email id.
How to Raise a Claim Under Own Damage Car Insurance?
To raise an Own Damage car insurance claim, you can follow these simple steps:
- Intimate the insurance company about the damages sustained by the insured vehicle
- Upon intimation, the insurance company will send a surveyor to inspect the damages caused to the insured car
- You will also be required to show certain important documents for the purpose of claim verification
- Now the insured vehicle will be sent to one of the network garages for repairs
- Once the repairs are done, the insurance company will settle the cashless claim with the network garage.
- If the insured vehicle has been repaired in a non-authorised network garage, the insurer will reimburse you the entire claim amount after the repairs.
