Road accidents are ugly and expensive too. In a road accident, there are two types of losses- damage to your own car and damage to the third-party property/person. Third-party insurance is mandatory as per the Motor Vehicle Act. However, own damage car insurance is an optional cover. You can buy a standalone own damage insurance policy or opt for a comprehensive insurance plan.
Comprehensive insurance is a combination of two plans:
- Third-party Insurance
- Own damage to car insurance (normal or zero depreciation)
Own damage car insurance covers all the damage to the insured vehicle against sudden and unexpected events.
Let’s know about own damage car insurance in detail.
What is an Own Damage Insurance?
Own damage insurance (OD Insurance) is a type of motor insurance that shields your car from damages caused due to accidents, natural calamities, man-made disasters, etc. It also covers the risk of the car being stolen.
Is OD Insurance Compulsory?
Unlike, third-party insurance, OD insurance is not mandatory. If you already have a third- party insurance, it’s optional to buy a standalone OD insurance. But most insurance companies sell standalone third-party insurance or comprehensive insurance.
What Does an OD Car Insurance Covers?
An own damage car insurance gives protection against the following risks:
- Accidental damages: An own damage cover protects your car from the damages caused due to an accident.
- Lost/ Theft: The cover compensates you if the insured car gets stolen or you lost it due to burglary or any covered event.
- Loss/ damage due to fire: OD insurance will cover car damages due to fire, lightning, explosion, etc.
- Loss/ damage due to natural calamities: Damages caused by natural calamities like earthquakes, floods, hailstorms, etc., are covered.
- Loss/ damage due to man-made disasters: Car damages due to man-made disasters like terrorist attacks, strikes, riots, etc., are covered.
- The coverage of own damage insurance may differ from company to company. It is advised to read all the terms and conditions of the policy documents carefully.
What Are The Exclusions of OD Insurance?
An own damage car insurance does not cover the following risks:
- A standalone own damage insurance cover will not cover third-party liabilities.
- Negligence or a deliberate act of the owner to get a claim, won’t be covered.
- When a car owner is under the influence of alcohol or drugs, damages caused will not be covered.
- If the driver was not carrying a driving license, then the claim will not be approved.
- Nuclear peril or civil wars are not covered
- Consequential damages (that take place after an accident) are excluded from the cover.
Read the policy document carefully before purchasing it. If you face any problem related to insurance, you can contact Insurance Samadhan. We have helped resolve 14,500+ complaints of policyholders. We’ll be happy to help you.