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Home / Car Insurance / Own Damage Insurance: OD Insurance & OD Premium for Car
When you buy a car, you are always worried about additional expenses such as repairs or replacement costs if your car gets damaged for any reason. In this case, Own Damage Insurance protects you from such additional unforeseen expenses. It offers financial security if your vehicle gets damaged in an accident, fire, natural calamities, man-made calamities, theft, etc. Let’s learn more about the Own Damage Insurance Plan, how to buy OD car insurance online, advantages, limitations, etc.
Own Damage (OD) Insurance Meaning
Standalone OD Policy shields you against expenses incurred if your car gets damaged in an accident, natural calamities, man-made calamities, fire, etc. It also protects you in case your car gets stolen.
Importance of OD in Insurance
Unlike basic Third-party car insurance, owning Own Damage insurance is optional. If you already own a mandatory Third-party policy, supplementing it with Own Damage cover will ensure that your car is comprehensively insured all the time.
Inclusions: What is Covered in OD Insurance?
Own Damage protects you against damages caused to your car in the situations mentioned below.
Accidental damage
Worried about accidents? Don’t worry, as we got your back in case your car gets damaged in an accident.
Fire & Explosion
Fire & explosions can make your savings and financial plan burn to ashes. But ACKO’s OD plan won’t let that happen!
Natural Calamities
We will cover the damages if natural calamities such as earthquakes, floods, cyclones, etc., create a catastrophe and damage your car.
Man-made Calamities
Man-made calamities such as vandalism, riots, strikes, and terror attacks are also covered under the plan.
Theft/Malicious Acts
It can be a worrisome moment when your beloved car gets stolen. However, you can rely on us in such a case, as we cover the losses due to theft.
Total Loss
Own Damage Insurance Plan also compensates you in case your car is damaged beyond repair.
Note: Mandatory Personal Accident Cover is not covered under the plan and needs to be purchased separately. Personal Accident cover secures you in case of permanent disabilities/death while driving your car.
Exclusions: What’s Not Covered in Own Damage Insurance?
Even while the OD plan sufficiently protects you against all damages to your car, here are a few things that are not covered.
Third-party Liabilities
OD plan does not cover third-party liabilities such as death/injuries to someone else or damages to their property.
Driving without a Licence
Driving without a valid driving licence is illegal. We will not cover any damages to your car in such cases.
Drunk Driving
Damages incurred while you were driving under the influence of alcohol or drugs won't be covered.
Consequential Damages
The plan excludes subsequent damages or losses caused by events such as accidents, fire, etc.
Electrical/Mechanical Breakdown
Own Damage insurance plan doesn’t cover damages related to the electrical or mechanical breakdown in your car.
Wear and Tear
Your car depreciates due to wear and tear with time. Unfortunately, the OD plan will not cover depreciation unless you purchase a plan that safeguards you against depreciation costs.
Other Use
Damages caused to your car while using your vehicle for other purposes not mentioned in a policy will not be covered.
Beyond Policy’s Terms
Any damages to your car that are outside the purview of your policy’s terms and conditions are not covered.
What are the Add-ons Available with Own Damage Insurance?
Zero Depreciation Cover
Want to eliminate depreciation cuts while settling the claims? With this car insurance add-on cover, we will not deduct the depreciation amount. And this means you will get a higher amount during claim settlement.
Engine Protection Cover
The heart of any car is its engine. And it can be painful to pay for the expenses in case of damages to your car. However, with this add-on cover, you are covered against costs due to damage to the car’s engine!
Consumables Cover
Generally, the cost to repair/replace lubricants, engine oil, gearbox oil, nut and bolt, etc., is not covered. But fortunately, Consumables Cover safeguards you from expenses incurred on these consumables items.
Return to Invoice Cover
This add-on cover secures you if your car gets stolen or damaged beyond repair. In such a case, it will compensate you for the amount mentioned on the car’s invoice value.
Key Replacement Cover
Worried about the expenses because your car keys got stolen, lost or damaged? A Key Replacement cover will come to your rescue in such cases and will even cover expenses to replace a lock.
Roadside Assistance Cover
Getting stuck because your car breaks down in the middle of a road can be annoying. But with Roadside Assistance cover, you get access to 24x7 emergency roadside assistance services.
Outstation Emergency Cover
Outstation Emergency Cover protects you in case of car accidents or car breakdowns outside a 100 km radius of your residence. And if the repair time takes more than 12 hours, you will get a reimbursement of Rs. 2,500.
No Claim Bonus (NCB) Protection
When you make a claim, you lose out on the NCB discount during car insurance renewal. However, this add-on cover will keep your discount intact even if you make any claims during the policy period.
Personal Accident Cover for Passengers
We are always worried about our near and dear ones. Personal Accident Cover for Passengers protects your loved ones against unfortunate accidents leading to permanent disabilities/death.
Benefits of Buying Own Damage Insurance from ACKO
Cashless Repairs
Enjoy the cashless claims settlement process when you get your car repaired at one of our network garages.
No Claim Bonus Discount
We will reward you for driving safely and not raising any claims during a policy period. The No Claim Bonus (NCB) discount goes up to 50% for five consecutive claim-free years.
Easy Claims Process
When you buy on ACKO, you can buy, claim and renew policy online either from the website or our mobile app. No tedious form-filling or exhaustive documentation work. We promise!
Save Money
ACKO doesn’t hire any middlemen or agents to sell policies. Since this reduces costs for us, we can offer lower-priced policies while ensuring your car is comprehensively covered.
Customisation
With a wide range of add-ons, you can customise the policy by adding relevant add-ons to enhance your plan’s coverage.
Value-added Services
Enjoy 1 hour pickup, instant repairs and 3-day free home delivery in select cities when you buy ACKO’s Own Damage Insurance Plan.
How to Raise a Claim for Own Damage Insurance Plan?
Step 1
In case of any damages or losses, inform ACKO. You can do it via mobile, email, or even through an app. In some cases, such as theft, you may need to file an FIR as well with the police.
Step 2
In case of damages due to accidents, fire, natural or man-made calamities, ACKO will appoint the surveyor to assess the loss.
Step 3
If the damages are minor, they will be instantly settled. In other cases, the support team will guide you with the process.
Why is Own Damage Car Insurance Important?
Enhanced Coverage
While a Third-party ensures that you comply with the law and protect yourself against third-party liabilities, it doesn’t help in any way if your car sustains any damages. That's where the OD plan comes into the picture.
Covers Car Damages
In this case, owning an Own Damage Car Insurance will ensure that your car is protected against damages due to incidents like fire, accidents, earthquakes, cyclones, strikes, riots, etc.
Covers Theft
OD plan also helps you recover the loss if your car gets stolen or is damaged beyond repair.
What is Own Damage Premium Amount?
Meaning
OD Insurance protects your car in case of accidental events, fire, natural/man-made calamities, theft, etc. In such a situation, your insurer will bear the costs in return for a premium amount at a periodic interval (usually a year).
Premium Amount
The OD premium amount is directly related to the Insured Declared Value of the car. Therefore, the higher the IDV, the higher the OD premium amount.
IDV Calculation
The formula to calculate IDV is: (Showroom price of the vehicle - Depreciation + (Value of fitted accessories (if any) – Depreciation).
Role of Add-ons
Along with IDV, the add-ons you select also determine the OD premium amount. Hence, only add add-ons that bring value to your plan.
How to Calculate Own Damage Premium?
With ACKO’s car insurance premium calculator, you can calculate Own Damage premium in a breeze.
Step 1: Visit our website or download the mobile app to purchase the policy.
Step 2: Enter details such as car’s make and model, purchase year, location, previous policy details, etc.
Step 3: Select a plan, add relevant add-ons and get a quote.
Step 4: If you are sure about the plan, make the payment. Your car is now insured!
How to Reduce Own Damage Insurance Premium Amount?
Choose IDV Wisely
As mentioned earlier, IDV directly impacts the premium amount. Therefore, lowering IDV will decrease premium but increase payable amount during claim settlement and vice-a-versa. Hence, it’s essential to select the right IDV to balance coverage and premium amount.
Deductibles
Voluntary Deductibles directly impact the premium amount. If you increase the voluntary deductible amount, it will decrease the premium amount. However, it will also increase out-of-pocket expenses during car insurance claim settlement.
Use NCB Discount
Insurers reward you with the No Claim Bonus discount for not raising any claims during the policy period. This discount can go up to 50% in the case of five consecutive claim-free years. If the NCB discount amount is higher, it is recommended not to raise claims for minor damages.
Select Relevant Add-ons
Add-ons like Zero Depreciation cover, Return to Invoice cover, etc. enhance the coverage, but also increase the premium amount. Hence, assess your requirements and only select those add-ons that add value to your OD insurance coverage.
Who Should Get Standalone Own Damage Insurance Policy?
Purchased a New Car
If you purchased a new car recently, getting car parts repaired or replaced can lead to financial costs. A standalone OD policy will help you save money in case of damages to your car.
New Drivers
For new car drivers, it’s always a good idea to secure yourself with an OD plan and have a good night's sleep.
Owns an Expensive/Luxury Car
Repairing/replacing car parts of a luxurious car can turn out to be a pretty expensive affair. And, the Own Damage plan will save you exactly from that!
Drive Frequently
The chances of damage increase when you take out your car frequently. In addition, your car may be prone to many unforeseen mishaps such as accidents, riots, earthquakes, fire, etc. Hence, we recommend you own an OD plan to avoid unforeseen expenses.
Documents Required to Make a Claim on Standalone OD Policy
The documents required to raise a claim vary from insurer to insurer. Also, depending on the incident, the documents required will also change.
1. First Information Report (FIR) in case your car gets stolen
2. Non-traceable certificate in case of theft
3. Copy of your insurance policy
4. Photocopy of your driving licence
5. Vehicle registration certificate
6. Photo of damages of the car
7. Repair bills in case you get your car repaired in a non-network garage
8. Any other document as required by the claims team
Difference Between Comprehensive, Own-Damage and Third-party Car Insurance
To buy an OD plan, you need to purchase mandatory Third-party car insurance to comply with the law and protect yourself against third-party liabilities. The below highlights what is covered under the different car insurance plans.
| Factor | Comprehensive Car Insurance | Own Damage Car Insurance | Third-party Car Insurance |
|---|---|---|---|
| Damage to third-party property/vehicle | ✔ | ✘ | ✔ |
| Injuries to third-party | ✔ | ✘ | ✔ |
| Death of a third-party | ✔ | ✘ | ✔ |
| Accidental damages to your car | ✔ | ✔ | ✘ |
| Damages due to fire | ✔ | ✔ | ✘ |
| Damages due to natural calamities (cyclones, earthquakes, etc.) | ✔ | ✔ | ✘ |
| Damages due to man-made calamities (riots, vandalism, etc.) | ✔ | ✔ | ✘ |
| Losses due to theft | ✔ | ✔ | ✘ |
| Damage beyond repair | ✔ | ✔ | ✘ |
| Choice of add-ons | ✔ | ✔ | ✘ |
Should You Buy Own Damage Insurance, Third-party Insurance or Comprehensive Car Insurance Policy?
Owning mandatory Third-party car insurance is an essential requirement while driving on the Indian streets. Not owning this policy can lead to monetary penalties. However, it doesn’t cover damages to your car.
OD insurance plan covers damages/losses to your car and is optional. However, if you have Third-party car insurance, supplementing it with an OD cover would ensure that your vehicle is comprehensively covered.
Selecting the right motor insurance plan depends on your requirement. Having said that, Comprehensive car insurance provides the most comprehensive coverage as it covers both mandatory Third-party car insurance and OD plan.
Frequently Asked Questions
FAQs
Is Own Damage insurance plan compulsory or optional?
OD plan is optional. Whereas, Third-party car insurance is compulsory.
Does a basic car insurance policy cover the Own Damage component?
No, Third-party car insurance doesn’t include the Own Damage insurance component. However, a Comprehensive car insurance policy covers both Third-party insurance and the Own Damage insurance component.
Can I insure my vehicle only with a Standalone Own Damage cover?
No, Third-party insurance is mandatory in India, and you need to buy this compulsorily. Whereas OD plan is optional, and buying it will ensure better coverage of your car.
Can I switch from a Third-party cover to an Own Damage cover while renewing the policy?
Both the plans are different. While mandatory Third-party protects you from third-party liabilities, the OD plan shields you from damages to your car. If you already own Third-party car insurance, you can buy an optional OD plan. Or you can shift your Third-party policy to a Comprehensive plan at the time of car insurance renewal.
What should I do if my car gets damaged?
The first thing you should do is inform your insurance company (e.g., ACKO). Then, the team will guide you with further steps depending on the nature of the damages.
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CIN: U66000KA2016PLC138288
IRDAI Registration No: 157
Category: Non-Life Insurance
The use of images and brands are only for the purpose of indication and illustration. ACKO claims no rights on the IP rights of any third parties. The ratings are derived from reviews and feedback received from Google and Facebook users on their respective platforms. | *Save Rs. 45,000 has been calculated on IDV of 20,00,000, 0% NCB and select add-ons. Amount saved is in comparison to Acko's F&U filing. Product name: Private Car Policy - Bundled | UIN: IRDAN157RP0014V01201819 |
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