What is TP and OD policy?

Asked by: Mr. Morton Lakin Jr.  |  Last update: February 11, 2022
Score: 4.5/5 (42 votes)

TP liability insurance covers the insured if he is held legally liable for damages caused to a third party. ... Having OD insurance helps you cover any damages your vehicle suffers in an accident, such as fire, road collision or vandalism, as well as theft of the vehicle or its parts.

What is OD policy and TP policy?

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 does TP mean in insurance?

A comprehensive insurance cover for a vehicle offers complete safety against the loss and damage to your vehicle i.e. own damage (OD) and other vehicles and properties i.e. third party liability (TP).

What is TP and OD?

A motor insurance policy consists of two parts - own damage (OD) cover and third party (TP) liability cover. ... All car and bike owners should buy a car insurance or a two wheeler insurance for their vehicle's safety.

What is OD only policy?

The presence of the OD section in your policy means it will cover the cost of repair of your car. Such a policy is also called a stand alone own damage(OD) policy. On the flip side, a policy without own damage part only covers what you owe to a third party and is called 'third party liability insurance'.

What is OD, TP, IDV, must know ... vehicle insurance policy.

34 related questions found

What is OD policy period?

In such a case, even after your third-party policy expires in December, your OD policy will continue as it will be issued for the period of one year. However, you have to renew your third-party policy immediately as without this you cannot drive your car in India (as per law), he adds.

Is TP insurance mandatory?

Is third-party insurance necessary? Yes, as per the Motor Vehicles Act of 1988, third-party insurance is mandatory for all vehicles driving in India.

What is OD in bike insurance?

Paperwork. ​ 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 two wheeler damaged in the accident.

What is IDV value?

What is Insured Declared Value (IDV)? The term 'IDV' refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy. That means the insurer will disburse a maximum amount of Rs.

What is TP Plan expiry date?

Under a Long Term, Comprehensive Policy both TP and OD coverage is for 5 years. ... In that case, one can opt for a Bundled Policy, wherein, “The TP coverage is of 5 years but OD cover is applicable for 1 year only.

What is OD claim?

OD in insurance refers to 'Own Damage', which implies that it covers for damages and losses of your own vehicle. OD in insurance refers to 'Own Damage', which implies that it covers for damages and losses of your own vehicle.

What is motor OD policy?

An OD cover insures the vehicle against theft and damages. The guidelines will be applicable for all new and old cars and two-wheelers. ... Having OD insurance helps you cover any damages your vehicle suffers in an accident, such as fire, road collision or vandalism, as well as theft of the vehicle or its parts.

What is motor OD claim?

For personal injury or property damage related to someone else. This person is called a third party in this context) or. For damage to your own, insured, vehicle. This is called an own damage claim and you are eligible for this if you are holding what is known as a package or a comprehensive policy.

What is tp start date?

Last Updated: Sep 19, 2018, 05:47 PM IST. If you buy a car after September 1, a portion of your motor insurance premium representing the third-party (TP) liability has to be paid upfront for three years. This means that new car owners will have to shell out more for their motor insurance policies in the first year.

What is basic OD?

Own Damage (OD) simply means cover against damages to your own car.

How is OD 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.)]

Is higher IDV better?

Simply remember, the greater the IDV, the higher is the premium and vice versa. So if you haven't calculated the IDV for your car, it will be nearly impossible to arrive at the OD premium. ... That is simply because your car's OD premium is directly proportional to the IDV; lower the IDV, less the premium you pay.

What is IDV and NCB?

Insured Declared Value and the No-claim-bonus are two important factors of every two wheeler insurance policy. The IDV of a two wheeler is fixed at the time of renewing or purchasing the insurance policy.

What is CPA cover?

CPA cover in car insurance means Compulsory Personal Accident cover. A compulsory Personal Accident cover of Rs. 1 lakh is available for individual owners of the car while driving (Available only if the owner of the car holds a valid driving license).

Is OD insurance compulsory for bike?

Unlike the mandatory Third-party bike insurance, buying OD insurance is optional. You can be financially protected in case your two-wheeler gets damaged by including the OD bike insurance with the Third-party Liability Policy.

Is OD insurance mandatory for bike?

It is not compulsory, however, provides greater protection than just third party insurance. This type of cover provides coverage for both third party liabilities as well as own-damage costs under a single premium. It is compulsory and without it you can be heavily fined.

What is TP premium in car insurance?

The IRDAI has proposed to increase the Motor Third Party (TP) premium rates for cars with engines below 1000 cc to Rs 2,182 from the existing Rs 2,072 for fiscal 2020-21. Similarly, for cars between 1,000 cc and 1,500 cc the third-party premium is proposed to be increased to Rs 3,383 from the existing Rs 3,221.

What are the disadvantages of third party insurance?

A third-party car insurance plan doesn't provide coverage for the cost of damage caused to any automobile or any belongings in the automobile if there is any accident. Along with that, it won't provide coverage to your car or if you belongings are damaged or stolen.

Is 5 years insurance mandatory?

Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. This has been done to ensure that maximum number of two-wheelers remain insured and also to minimise incidents of lapsed, expired policies and uninsured vehicles.

What is PA cover?

A compulsory personal accident or PA cover is an add-on cover offered by motor insurance providers to the owner-driver of a car that protects him against any accidental injuries.