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Own Damage Cover: A Saviour in the Hour of Need!

Own Damage cover helps you cover your pricey possession against the loss or damage due to natural or man-made calamities. Own damage cover comes handy especially in case of accidental damage where the insured two-wheeler sustains multiple damages. Let’s know about this cover in detail!

Why is Own Damage Cover Useful?

Own damage cover is useful in covering the insured vehicle in case of accidental damage. As you know, the mandatory third party insurance only covers the liabilities of a third party arising out of accidental death, damage or injury. In such a case, if your vehicle gets damaged, no coverage will be offered. But if you have own damage cover, you can claim for the damages sustained by your bike as well.

Features of Own Damage Cover

The features of own cover include:

  • The policy covers the insured vehicle as well as third party liabilities.
  • Unlike third party insurance, own damage cover is complementary in nature.
  • Own damage insurance is extensive in nature where one can opt for add-on riders to boost the basic policy cover.
  • The premiums are silently higher than the third party insurance.
  • The policy covers the insured vehicle for man-made and natural calamities as well as third party liability.

Own Damage Cover: Inclusions

This policy covers the cost of damages to your two-wheeler due to-

  • Natural calamities like fire, earthquake, explosion, floods, storm and more
  • Man-made c​​calamities like vandalism, riots, theft, burglary, malicious activities and terror attacks

It also covers the insured vehicle for damages caused by:

  • Explosion
  • Hailstorm
  • Terrorism
  • Frost
  • Inundation
  • Self-Ignition
  • Lightening
  • Cyclone
  • Tempest
  • Riot & Strikes
  • Hurricane
  • Landslide
  • Rockslide
  • Typhoon
  • Transit by Rail, Road, Air & Elevator

Own-damage Cover: Exclusions

When this policy covers the insured vehicle up to a certain extent, there are some situations where providing insurance coverage can’t be feasible. In such a case, own damage cover remains inactive. These include:

  • Third-party liability claim
  • Normal wear and tear
  • Mechanical or electrical break-down
  • If a vehicle is being used outside the geographical limitation as mentioned in the policy document.
  • Los or damage due to vehicle’s depreciation
  • Consequential loss
  • Damage to tyre & tubes, unless the vehicle is damaged at the same time. However, the company’s liability is limited to 50% of the total repair cost
  • ​​​If the vehicle is driven under the influence of alcohol, drugs or other intoxicates
  • If the driving is not carrying a valid license at the time of the accident
  • In case the policy is not active at the time of claim

How is the Own Damage Premium Decided?

When third party insurance premium is decided by the Insurance Regulatory and Development Authority of India (IRDA) for a fixed tenure, premium calculation for own damage insurance for bike is quite complicated. There are certain factors that directly influence own damage premium. These include:

  • Age of the insured
  • Age of the vehicle. Premiums for new bikes are higher than the older one
  • Registration zone. Vehicle registered in Zone A are likely to have higher premiums
  • Bike’s make and model. Bikes with advanced features or model will have higher premium or vice versa.
  • Vehicles with safety equipment installed comparatively have less premium
  • Owners with AIAA membership can have lower premiums
  • Voluntary deductibles opted at the time of buying insurance helps in reducing the premium rate
  • Voluntary deductibles that the vehicle owner opts for at the time of policy purchase

Two wheeler insurers take these factors into account at the time of deciding the premium rates for bike insurance. You can calculate it yourself by using own damage premium calculator online. Visit an insurance aggregator website like policybazaar.com, and provide necessary information such as make and model, year of manufacturing etc. and get the premiums suggestions.

How Much Protection to be Availed?

The amount of protection to be availed in case of an own damage claim is based on the insured’s declared value of your two-wheeler. Usually, bike insurance coverage depends on the IDV of the vehicle, where the insurance company paying up to the IDV only in case of an eventuality. So, it can be assumed that the amount you will receive will based on the current market value of your vehicle.

How to File Own Damage Claim?

Claiming own damage insurance is simple if you approach the right way. To initiate the claim process, follow the below steps:

  • Immediately inform the insurance provider about the incident leading to the claim. Register your claim by calling on their toll-free number or writing an email. Ask for the claim form or you can download it from the official website of the insurer.
  • Try providing as much as possible evidence of the accident. It is better if you can click some pictures of the damages sustained by the vehicle. Fill the claim form and submit along with the relevant documents.
  • Arrange for taking the damaged vehicle to the garage. If you did the repair work from a network garage, you can file a cashless claim, where expenses will be settled directly by the insurer. In case you avail the services from a non-network garage, you’ll have to pay the expenses first and register a claim later.
  • A surveyor from the insurance company will examine the vehicle and damages. Later an estimation will be made and sent to the insurance company.
  • Upon receiving the claim form and surveyor’s report, the insurance company will compensate the incurred money. In case of cashless claim, it will be settled directly or the amount will be reimbursed to the registered bank account.

What are the Documents Required for Filing An Own Damage Claim?

In case a claim arising for own damage, you will have to furnish the following documents:

  • Copy of the insurance document
  • FIR in case of an accident/theft
  • Registration Certificate of the vehicle
  • Proof of the accident, images etc.

Bottom Line

When you can’t afford to damage your prized possession, it is wise to insure it today. And without own damage cover you can’t ensure sufficient protection to it. An own-damage cover comes with extensive coverage that ensures optimum insurance protection in case a calamity strikes. When you can buy this cover separately now, why wasting time or to wait for a disaster to strike. Buy it today and stay stress-free.

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