Own Damage Car Insurance

Maintaining a car can be an expensive affair owing to the ever-rising maintenance costs. Own damage car insurance is an affordable way to protect a car from accidental damage or other losses including theft and fire. Compared to comprehensive car insurance, an OD insurance cover can be bought at a cheaper rate and for a shorter duration.

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What is Own Damage Car Insurance?

Investing in a car comes with its own share of additional expenses. Own damage car insurance is helpful in case of damages caused to the 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 standalone OD insurance policy is affordable while offering coverage for damages that a third-party liability 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 standalone OD insurance policy better, take a look at different types of motor 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

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Benefits of Own Damage Car Insurance

Mentioned below 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 own damage insurance policies online from different insurers depending on their budget and benefits
  • More affordable and effective for those who can't pay high premium 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.

Coverage Under Own Damage Car Insurance

  • Accidental damages caused to the insured vehicle are included in policy coverage
  • Compensation is given in case the vehicle is lost or stolen
  • Damages caused to the insured vehicle by ignition, lightning, fire etc.
  • Losses incurred due to terrorist attacks, riots and other man-made disasters are also covered in OD insurance policy
  • Damages due to natural calamities including floods, hailstorms, earthquakes etc. are covered
  • No third-party liabilities will be covered under the own damage insurance policy
  • Consequential damages due to an accident not covered
  • Damages caused by the owner's negligence won't be covered, for example, driving through floods
  • Loss incurred due to illegal activities or under the influence of alcohol will not be covered
  • Damages caused to the insured car when the driver was not carrying a driving license are also excluded from policy coverage
  • Losses arising out nuclear peril or civil war are not covered

Additional Covers Under Own Damage Car Insurance

A policyholder can also enhance the coverage of his/her OD insurance policy by purchasing 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 own damage insurance 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 you the premium and IDV of your car. You can also compare the premium 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 insurer. The own damage premium can be calculated after making deductions related to discounts and benefits.

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How to Buy Own Damage Car Insurance Online?

You can purchase Own Damage car 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 as it has sustained own damages, will be sent to a network garage for repairs
  • Once the repairs are done, the insurance company will settle the cashless claim with 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.

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  • Q1. Why is OD cover important?

    If only opting for third-party insurance, no compensation will be offered even if your vehicle gets damaged due to certain reasons. This is where the importance of own-damage car insurance is realised. It offers protection from loss sustained due to any natural or man-made hazard. One must re-evaluate their auto insurance and shop accordingly to ensure they are adequately covered.

  • Q2. Who should buy OD policy?

    The policy is beneficial for everyone who wants to save repair and damage costs in case of accidental damages. However, the compensation pay-out depends on the IDV of the vehicle which is directly affected by the vehicle's depreciation rate. Thus, people with new cars not older than 5 years should buy this policy.

  • Q3. Will I be compensated if my car gets stolen?

    Yes, in case of a total loss you will get compensated as per the IDV of the vehicle if you have an own damage insurance for your car.

  • Q4. My driver was drunk and my car got into an accident, will I be reimbursed for the damages?

    If the driver was drunk and decided to drive despite your awareness, then no claim will be entertained.

  • Q5. Will I need any documents for own damage car insurance renewal?

    No, you will not require any document to renew your own damage car insurance plan from Policybazaar.com. Simply visit our ‘Car Insurance’ page and enter your car details to renew your OD cover in just 5 minutes.

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Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

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