Vehicle Insurance Od: Understanding Own Damage Cover

Own Damage (OD) insurance is a type of vehicle insurance that covers repairs to your own vehicle in the event of accidental damage, natural disasters, or theft. OD insurance is separate from third-party liability insurance, which only covers damage to third-party vehicles. OD insurance can be purchased as a standalone policy or as part of a comprehensive insurance package, which includes both third-party liability and OD cover. While OD insurance is not mandatory, it is highly recommended to protect yourself from costly repairs.

What is covered by OD insurance?

Own Damage (OD) insurance is a type of insurance policy that covers losses or damages caused to the insured vehicle. It is a standalone insurance policy and is optional to buy for car owners in India. OD insurance covers accidental damages, as well as damages caused by natural calamities and man-made disasters.

• Accidental Damages: OD insurance covers damages caused to the insured vehicle due to accidents or collisions.
• Theft of Vehicle: OD insurance provides compensation if the insured vehicle is stolen.
• Losses Caused by Fire: Damages to the vehicle due to fire are covered by OD insurance.
• Damages Due to Natural Calamities: OD insurance covers damages caused by natural disasters such as earthquakes, floods, storms, cyclones, and hailstorms.
• Man-Made Incidents: OD insurance also covers damages resulting from man-made incidents such as riots, vandalism, and terrorist attacks.
• Total Loss: OD insurance compensates for damages beyond repair or complete loss of the vehicle.

It is important to note that OD insurance does not cover third-party liabilities, driving without a valid license, drunk driving, consequential damages, electrical or mechanical breakdown, and wear and tear.

What is not covered by OD insurance?

OD insurance, or Own Damage insurance, covers the cost of repairing damage to your own vehicle. However, there are some scenarios in which OD insurance will not cover the cost of repairs. These include:

• Third-party liabilities: OD insurance does not cover third-party losses of any kind and is strictly meant to protect your own vehicle.
• Depreciation: OD insurance does not cover depreciation costs unless you choose an add-on such as a Zero Depreciation cover.
• Electrical and mechanical breakdown: OD insurance does not cover losses arising from mechanical faults in the car unless they are caused by accidental damage.
• Drunk driving: OD insurance will not cover losses if your car is damaged as a result of drunk driving or driving under the influence of intoxicating substances.
• War or nuclear risks: OD insurance does not cover losses caused by wars, war-like incidents, or nuclear attacks.
• Driving without a license: OD insurance does not cover losses if your car is damaged while being driven by someone without a valid license.
• Consequential damages: OD insurance does not cover damages that occur after an accident unless the damage happens during the accident itself.
• Contributory negligence: OD insurance does not cover damages if you have done something you were not supposed to do. For example, driving your car through a flooded city.
• Driving without a licensed holder: OD insurance does not cover losses if you only have a learner's license and are not driving with someone who has a permanent driver's license.

How is OD insurance different from third-party and comprehensive insurance?

Own damage (OD) insurance is different from third-party and comprehensive insurance in several ways.

Firstly, in terms of coverage, OD insurance only covers damage to the insured vehicle, while third-party insurance covers damage to third-party vehicles and property. On the other hand, comprehensive insurance combines third-party liability coverage with OD coverage, protecting against damage to both third-party property and the insured vehicle. This means that comprehensive insurance provides the widest range of coverage, followed by OD insurance, while third-party insurance offers the most limited coverage.

Secondly, in terms of cost, OD insurance is typically more expensive than third-party insurance but cheaper than comprehensive insurance. Third-party insurance premiums are predetermined by the Insurance Regulatory and Development Authority of India (IRDAI) based on the cubic capacity of the car, while comprehensive insurance premiums are based on factors such as the make and model of the vehicle, the city where it is driven, and any additional riders included. OD insurance premiums start at a higher rate but decrease over time as the car gets older, whereas comprehensive insurance premiums are affected by depreciation and tend to decrease with time.

Thirdly, OD and comprehensive insurance policies often offer add-ons or additional coverage options, such as zero depreciation, roadside assistance, and engine protection, which allow policyholders to customise their coverage according to their specific needs. In contrast, third-party insurance policies do not usually offer any add-ons or customisation options.

Finally, in terms of mandatory requirements, while OD insurance is optional for car owners in India, third-party insurance is mandatory as per the Motor Vehicles Act of 1988. Comprehensive insurance, which includes third-party liability coverage, is also not mandatory but is highly recommended to ensure adequate financial protection in the event of an accident or other mishap.

How to buy OD insurance online?

Own Damage (OD) insurance is a type of vehicle insurance that covers the cost of repairs to your car. This can include accidental damage, damage from natural disasters, and damage from human-caused incidents like theft, vandalism, and terrorism. OD insurance is available as a standalone policy, which can be purchased alongside compulsory third-party insurance.

• Research: Begin by visiting a trusted insurance website or comparison platform, such as Bajaj Finance Insurance Mall, ACKO, Policybazaar, or HDFC ERGO. You can compare different plans and insurance providers to find the best option for you.
• Vehicle Information: Once you have chosen an insurance provider, you will need to provide details about your car, including the make, model, and year.
• Choose Coverage: Select the type of coverage you want. In this case, you would choose standalone OD coverage.
• Calculate Premium: Input your preferences, including any add-ons or additional coverage, and the platform will generate a premium quote for you.
• Personal Details: Enter your personal information, such as your name, contact information, and payment details.
• Payment: Choose a payment method and complete the transaction.
• Policy Receipt: Once the payment is processed, you will receive your policy documents via email.

By following these simple steps, you can purchase OD insurance online and ensure that your vehicle is protected against various risks. Remember to carefully review the terms and conditions of the policy before purchasing.

How to renew OD insurance?

Renewing your OD insurance is a straightforward process. Here are the steps you need to follow:

• Research and Compare Plans: Visit a trusted insurance website or a comparison platform to explore the different OD insurance plans available. You can compare plans based on your specific requirements, such as coverage, add-ons, and pricing.
• Vehicle Information: Once you've selected a few potential insurance providers, provide details about your vehicle, including the make, model, variant, and registration year. This information will help you get accurate quotes.
• Choose Coverage: Decide on the level of coverage you need. You can opt for a comprehensive plan that includes both third-party liability and own damage coverage, or you can choose a standalone OD insurance plan if you already have separate third-party liability coverage.
• Calculate Premium: Use an online premium calculator to determine the cost of the OD insurance. You can input factors such as your vehicle's model, variant, price, and registration year to get a quote.
• Personal Details: Provide your personal information, such as name, contact details, and address, as required by the insurance company.
• Payment: Choose a payment method and complete the transaction to purchase the OD insurance plan.
• Policy Receipt: After purchasing the plan, you will receive the policy documents via email. Make sure to review the documents carefully and understand the terms and conditions of your OD insurance coverage.

It's important to note that OD insurance policies typically have a validity of one year and need to be renewed annually. Mark your calendars and set reminders to ensure you renew your OD insurance on time to avoid any lapse in coverage. Additionally, review the policy details and confirm that the coverage, add-ons, and other benefits meet your requirements before renewing.

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