What is Own Damage Car Insurance and How Does it Work?

Car insurance is essential to vehicle ownership, providing financial protection against various risks. Own Damage (OD) Car Insurance stands out for its comprehensive coverage among the different types of car insurance policies available.

What exactly is own damage car insurance, and how does it work? In this blog post, we’ll explore the details of OD insurance, its benefits, and why it might be the right choice for you.

What is Own Damage Car Insurance?

Own Damage Car Insurance, or OD insurance, is a motor insurance policy that covers your car against damages. This insurance plan covers your vehicle in case of vehicle theft, natural disasters, accidents, or any other unforeseen incidents specified within the policy. Unlike third-party insurance, which covers liabilities towards others, OD insurance is specifically designed to cover damages to your vehicle.

Benefits of Own Damage Car Insurance

Understanding the own damage insurance meaning can help you appreciate its numerous benefits. Here are some key advantages of having an Own Damage Car Insurance policy:

1. Saves Money

With OD insurance, you don’t need to buy long-term comprehensive car insurance to get both third-party coverage and own damage coverage. This flexibility can save you money while still providing essential protection.

2. Financial Backup

Own damage insurance backs you financially if your car gets damaged due to accidents, calamities, theft, and other covered incidents. It ensures you are not left bearing significant repair or replacement costs out of pocket.

3. Wider Coverage

OD insurance allows you to buy add-ons to enhance the policy’s coverage. This option is not typically available with third-party car insurance plans, making OD insurance a more versatile choice for comprehensive protection.

What Does Standalone Own Damage Car Insurance Cover?

A standalone own damage policy provides extensive coverage against various risks. Here are some of the scenarios covered:

1. Accidental Damages: If your car is damaged due to an accident.
2. Fire and Explosions: Damages to your car caused by fire or explosions.
3. Natural Disasters: Damages incurred by the insured car due to earthquakes, cyclones, flooding, etc.
4. Man-Made Calamities: Damages caused due to riots, vandalism, etc.
5. Vehicle Theft: If your car is stolen, the OD insurance will cover the losses.
6. Total Loss: Own Damage Insurance Plan also compensates you if your car is damaged beyond repair.

Exclusions

While OD insurance offers extensive coverage, there are certain exclusions to be aware of:

• Third-party Liabilities: OD insurance does not cover third-party liabilities such as death/injuries to someone else or damages to their property.
• Driving Without a Licence: Damages incurred while driving without a valid licence are not covered.
• Drunk Driving: Damages incurred while driving under the influence of alcohol or drugs are excluded.
• Consequential Damages: Subsequent damages or losses caused by accidents or fires are not covered.
• Electrical/Mechanical Breakdown: Damages related to electrical or mechanical breakdowns in your car are excluded.
• Wear and Tear: The plan does not cover depreciation unless you purchase an add-on to safeguard against these costs.
• Beyond Policy Terms: Any damages outside the policy’s terms and conditions are not covered.

Who Should Get Standalone Own Damage Insurance Policy?

Consider a standalone own damage policy if you fall into any of the following categories:

1. New Car Owners

If you’ve recently purchased a new car, repairing or replacing parts can be costly. An OD policy helps save money on such expenses.

2. If You Have a Liability-Only Policy

Suppose you already have a valid third-party liability policy. In that case, you can opt for a standalone OD policy for additional protection.

3. New Drivers

A standalone OD policy provides extra security and peace of mind for new drivers.

4. Owners of Expensive/Luxury Cars

Repairing or replacing parts of a luxury car can be expensive. An OD policy offers financial protection against such high costs.

Additional Covers/Add-Ons Under Own Damage Car Insurance

Enhance your damage insurance with these valuable add-ons:

1. Zero Depreciation Cover

Eliminates depreciation costs during claim settlements, ensuring you get a higher claim amount.

2. Engine Protection Cover

Covers expenses due to damage to your car’s engine.

3. Consumables Cover

Safeguards you from expenses incurred on consumable items like lubricants and engine oil.

4. Return to Invoice Cover

Compensates you for the invoice value of your car if it’s stolen or damaged beyond repair.

5. Key Replacement Cover

Covers expenses for replacing stolen, lost, or damaged car keys.

6. Roadside Assistance Cover

Provides 24×7 emergency roadside assistance services.

7. Outstation Emergency Cover

It protects you in case of breakdowns or accidents outside a 100 km radius of your residence.

8. NCB Protection (No Claim Bonus)

Keeps your NCB discount intact even if you make claims during the policy period.

9. Personal Accident Cover for Passengers

Protects your passengers against accidents leading to permanent disabilities or death.

Final Word

Own Damage Car Insurance is a crucial component of motor insurance, providing comprehensive coverage for your vehicle against various risks. By understanding OD insurance’s benefits, coverage, and exclusions, you can make an informed decision and ensure your car is well-protected. Whether you’re a new driver, a luxury car owner, or simply looking for additional protection, your damage policy can offer the financial security and peace of mind you need on the road.