What is own damage policy?
Asked by: Dr. Michele Parker DDS | Last update: January 31, 2023Score: 4.1/5 (30 votes)
Own Damage . – means loss or damage to the insured vehicle itself by way of sudden accident and perils specified in the policy schedule and not specifically stated in the policy exclusions.
What is the meaning of Own damage insurance?
Own Damage Car insurance a.k.a. OD Insurance is a motor insurance policy that is intended to safeguard your car against unforeseen own damages. This policy offers car insurance coverage for own damages sustained by your car due to road accidents, fire, natural calamities, or any other mishap.
What is own damage and third-party insurance?
Own Damage Car Insurance provides coverage to the insured car. Third-party Car Insurance provides coverage against third-party liabilities.
What is difference between comprehensive and own damage?
An OD insurance covers the insured vehicle against damages, loss, theft, etc. However, it does not cover third-party liabilities. A Comprehensive plan, on the other hand, is a combination of Own Damage and Third-party Liability insurance.
Is own damage mandatory?
Buying a car insurance for own damage (OD) is not compulsory. However, the compliance rate of this mandatory provision is low. As per a Supreme Court committee report of March 2018, only one in three vehicles hold third-party liability insurance. The purchase of insurance for own damage is even lower.
What is Own Damage Motor Insurance Policy? - Vehicle Insurance Basics By Reliance General Insurance
What is own damage and zero DEP?
You can get car insurance coverage for own damage only if you buy a Comprehensive Plan. On the other hand, you need to separately buy the Zero Depreciation car insurance add-on to get coverage against depreciation on the vehicle. Both covers help you get more out of your car insurance plan.
What is meaning of own damage?
Own Damage . – means loss or damage to the insured vehicle itself by way of sudden accident and perils specified in the policy schedule and not specifically stated in the policy exclusions.
Which type of two-wheeler insurance is best?
A Comprehensive type of policy is considered as the best two-wheeler insurance policy because of its coverage. It covers the mandatory Third-party Liability Insurance as well as Own Damage. You can also go for appropriate Add-ons to strengthen your policy.
Is OD insurance compulsory?
✓ Is OD insurance mandatory by law? No, an OD insurance for your car or bike isn't mandatory but is recommended for protection for your own vehicle. As per the Motor Vehicle Act, the basic Third-Party Insurance is mandatory for all vehicles.
Is own damage insurance mandatory in India?
Own Damage Vehicle Insurance Rules To Be Changed From 1st August. In India, it is mandatory to have at least third-party vehicle insurance before plying it on the roads. The compliance for this mandate is not much but it does not provide any cover for own vehicle damage.
What is own damage expiry date?
As per IRDAI regulations, the long-term third-party cover is mandatory for brand new private cars and two-wheelers. However, expiry of the own damage cover cannot be later than the expiry of the third-party cover. Which means no policy can have own damage coverage beyond the validity of third-party coverage.
How is own damage premium calculated?
The premium for OD cover is calculated as a percentage of IDV as decided by the Indian Motor Tariff. Thus, formula to calculate OD premium amount is: Own Damage premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (eg. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)]
Can I buy only own damage car insurance?
Standalone own damage insurance covers the damages only to the insured car. Comprehensive car insurance covers third-party liabilities as well as own damage under a single policy premium. The insurance cover is limited to third-party damages only.
Can we claim insurance for own damage?
Own-damage car insurance claims can be raised only under the comprehensive insurance plan. You must determine whether you want to choose cashless claim settlement or reimbursement claim settlement process. Both the settlements come with alluring benefits and use when the need arises.
What is difference between od and TP insurance?
While the OD part provides coverage for any damage caused to the insured vehicle, the TP part covers the policyholder's legal liability arising due to damages inflicted to a third party individual or property due to his/her negligence driving.
What is a PA policy?
Personal Accident insurance or PA insurance is an annual policy which provides compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events. It is different from life insurance and medical & health insurance.
What is own damage period in car insurance?
Own Damage (OD) helps you stay covered against damage caused to your vehicle due to accidents like fire, theft, etc. In case of an accident, an own damage cover compensates you for expense to repair or replace parts of your car damaged in the accident.
What is own damage in bike insurance?
Own damage bike insurance cover refers to a type of two-wheeler insurance policy that provides protection only for your insured two-wheeler in case of any losses or damages caused to it. For example, the damages may occur due to an accident, natural calamity, vandalism, theft, riots, collisions, etc.
What is zero DEP in bike insurance?
Zero depreciation bike insurance means that the insurance company does not take into consideration the depreciation on bike or scooter parts while settling the claim. It offers comprehensive coverage to the two wheeler without determining its depreciating value.
Which insurance is compulsory for 2 wheeler?
Having third-party insurance is anyway compulsory for all vehicles as per the Motor Vehicles Act, 1988. If you have just bought a brand new scooter or bike and decided to go with basic third-party bike insurance, you will necessarily have to buy a 5 year insurance policy.
What is OD policy in car insurance?
The own damage cover allows you to compensate for the repair and replacement expenses. OD policy compensates for damages like natural calamities, man-made calamities, due to accidents, theft or malicious acts. There are insurance companies that provide own damage insurance cover for your vehicle.
What is TP policy in car insurance?
Among the two types of car insurance in India, the third-party (TP) car cover serves to protect the insured from claims arising from a third party, when the insured person's vehicle is at fault. This cover will pay for any fiscal liability that arises out of the accident.
Is comprehensive or zero dep better?
The comprehensive insurance plan offers extensive coverage that even protects the car from third party damages. It is beneficial to have Zero Depreciation if you stay in a risk-prone zone where there is a higher likelihood of damage to your car.
What is not covered in zero DEP insurance?
Zero depreciation car insurance policy offers 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. It does not cover engine damage due to water ingression or oil leakage. Any mechanical breakdown, oil change or consumables are also not covered in this policy.