Own Damage Insurance
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Home / Car Insurance / Own Damage Insurance: OD Insurance & OD Premium for Car
What is Standalone Own Damage Insurance?
What is a standalone OD policy? Own Damage Car Insurance or OD insurance covers your car against damage due to accidents, theft, and natural disasters. However, it does not provide coverage against third-party liabilities. Also, unlike a Third-party policy, an Own-damage policy is not compulsory according to the Motor Laws.
Benefits of Own Damage Car Insurance
Own damage insurance meaning stands for an insurance plan that covers damages to your car. Here are the key benefits of the Own Damage car insurance.
Save Money
With OD insurance, you need not buy long-term Comprehensive car insurance to get third-party coverage and own damage coverage.
Financial Backup
Own damage insurance provides you a financial backup if your car suffers any damage due to accidents, calamities, theft, etc.
Wider Coverage
OD insurance allows you to buy add-ons to enhance the coverage of the policy. This option is not available with the Third-Party insurance plan.
Coverage Under Standalone Own Damage Car Insurance
The following sections provide more details about the coverage benefits of the Own Damage car insurance plan.
OD Inclusions
OD Exclusions
Accidental Damages: If your car is damaged due to an accident.
Fire and Explosions: Damages to your car caused due to fire or explosions.
Natural Disasters: Damages incurred by the insured car due to earthquakes, cyclones, flooding, etc.
Man-Made Calamities: Damages sustained by your car due to riots, vandalism, etc.
Vehicle Theft: If your car is stolen, the OD insurance will cover such losses.
Total Loss: Own Damage Insurance Plan also compensates you in case your car is damaged beyond repair.
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. Own damage insurance 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: 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.
Who Should Get Standalone Own Damage Insurance Policy?
If you belong to any of the following categories, you should consider buying an Own Damage Car Insurance Policy.
New Car Owners
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.
If You Have a Liability-Only Policy
If you already have a valid third-party liability policy, then you can opt for a standalone Own Damage insurance policy.
New Drivers
For new car drivers, it’s always a good idea to secure yourself with a standalone OD policy 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 car insurance plan will save you exactly from that!
Compare: Third Party Insurance vs. Own Damage Car Insurance vs. Comprehensive Car Insurance
Parameters | Third-party Car Insurance | Own Damage Car Insurance | Comprehensive Car Insurance |
|---|---|---|---|
Coverage | Third-party insurance provides financial coverage for third-party liabilities only | Own-damage insurance provides coverage if there is any damage to the insured car | Comprehensive insurance provides coverage for both third-party liabilities and damage to the insured car |
Legal requirement | Third-party insurance is mandatory as per the Motor Laws of 1988 | Own damage is not compulsory coverage; however, you must get it to ensure your car is financially protected against unforeseen events | A Comprehensive policy is also not mandatory as per the Motor Vehicle Act |
Premium Amount | As third-party insurance is a compulsory requirement, its premium rate is quite affordable | It’s premium amount is higher initially and later gets lowered as the vehicle gets old | The premium rate of a Comprehensive policy is higher as it provides coverage for both own damages and third-party liabilities |
Depreciation Rate | The premium amount in third-party insurance is not affected by depreciation | The depreciation rate affects the premium amount in Own-damage car insurance | The own-damage component in Comprehensive policy gets affected by the depreciation rate |
Exclusions | Third-party insurance does not provide coverage if there is any damage to the vehicle | Own-damage insurance excludes coverage for third-party damages or injuries | Unlike the other two, a comprehensive policy provides financial coverage against all the unprecedent events that might take place on road |
Additional Covers/Add-Ons Under Own Damage Car Insurance
Here are the add-ons you can buy along with the own damage insurance.
Zero Depreciation Cover
Want to eliminate depreciation costs while settling the claims? With this car insurance add-on cover, we will not deduct the depreciation amount. 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 damage to your car’s engine. 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 replace lubricants, engine oil, gearbox oil, nut and bolt, etc., is not covered. 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
Are you 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.
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.
How to Calculate Own Damage Premium
With ACKO’s car insurance premium calculator, you can calculate your Own Damage premium in just a few minutes. Here are the steps for the same.
Step 1: Visit our website or download the mobile app.
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 you can view the premium for the selected plan and add-ons.
What is the Insured Declared Value (IDV) in OD Car Insurance?
Insured Declared Value (IDV) in OD car insurance refers to the sum insured amount of the policy. It is the approximate value of the vehicle when buying OD insurance. If your car is stolen or suffers a total loss, you will get the IDV amount as a claim settlement after the deduction of the depreciation costs.
How to Reduce Own Damage Insurance Premium Amount
Here are a few tips to reduce the Own Damage insurance premium.
Choose IDV Wisely
IDV directly impacts the premium amount. Therefore, lowering IDV will decrease the premium but increase the payable amount during claim settlement and vice-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.
Factors Affecting Own Damage Car Insurance Premium
Here are some of the factors that affect the OD insurance premium.
Car Make/Model
The make and model of the car impact the premium. A high-end car will attract a higher OD premium, and a budget-friendly car can be insured at a lower premium.
IDV
The Insured Declared Value of the car is a crucial factor that determines the OD premium. Higher IDV translates to higher premiums and vice-versa.
Engine Capacity
The higher the engine capacity (cc) of the car, the higher the premium. This is because a car with a larger engine capacity poses a higher risk to the insurer.
Vehicle’s Age
Older cars attract a lower premium compared to new cars due to the depreciation factor. In simple words, an older car has a lower IDV, and hence the OD premium will be lower.
No Claim Bonus
No Claim Bonus (NCB) is the discount offered to you for not making any claims during the previous OD policy period. This discount can reduce the OD premium.
Add-Ons
The Own Damage insurance premium can increase if you opt for add-on covers. The more add-ons you opt for, the more the premium.
How to Buy/Renew Own Damage Car Insurance Online
Here are the steps to buy/renew OD car insurance online.
Step 1: Download the ACKO app or go to the top of this page.
Step 2: Enter your vehicle number and previous policy details, if applicable.
Step 3: Select the OD car insurance and add-ons and pay the premium online to buy/renew the policy instantly.
Types of Claims You Can Raise with Standalone OD Policy
1. Cashless Claim
A cashless claim allows you to get your vehicle repaired at an authorised network garage without having to pay upfront for the repair costs. The insurance company directly settles the bill with the garage, subject to the policy terms and conditions. This process eliminates the need for you to pay out-of-pocket, making it a convenient option for car owners in India.
2. Reimbursement Claim
A reimbursement claim allows you to pay for the repairs at any garage (network or non-network) and later claim reimbursement from the insurance company. After getting your vehicle repaired, you submit the necessary documents and receipts to the insurer for reimbursement of the costs.
How To File For Standalone Own Damage Insurance Claim
Here are the steps to raise a claim against OD car insuran ce from ACKO.
tep 1: Log in to your account. Click on your policy card.
Step 2: Select the “Register a Claim” option.
Step 3: Provide details of the damage and upload the relevant documents to raise a claim online.
Frequently Asked Questions about Own Damage Car Insurance
OD Car Insurance FAQs
FAQs
Is zero dep and own damage the same?
No, Zero dep and Own damage are not the same, as they provide different coverage in a car insurance policy.
How many times can I claim own damage insurance?
There are no limits to the number of times you can claim own damage insurance.
Can we take only own damage car insurance?
Yes, you can buy own damage insurance as a standalone policy. However, it is mandatory to have third-party insurance for your car.
Is own damage insurance worth it?
Yes, OD car insurance is worth the money as it covers damages to your car and saves you from financial losses.
How much does own damage insurance cost?
The premium for the OD car insurance depends on the car’s make/model, vehicle’s age, engine capacity and many other factors.
Is first party and own damage insurance same?
Own damage and first party insurance are the same. They are different terms given to the OD car insurance.
What is the benefit of OD insurance?
The main benefit of the own damage car insurance is that it covers damages to your car and saves you from financial losses.
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.
*Get this only if you already have an active third-party plan
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Have queries related to ACKO’s two wheeler insurance policy? Refer to our Policy Wordings for detailed information or reach out to us via email or phone using the information below
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