Own Damage Car Insurance

Own damage car insurance is a type of motor insurance that covers the cost of repairing your car if it is damaged due to an accident, natural disaster, fire or theft. Unlike third-party insurance, which only pays for damage caused to other people or their property, OD insurance for car protects you from financial loss related to your vehicle.

Earlier, car owners had to buy a comprehensive policy to get this cover, but now insurers allow customers to buy Standalone own damage insurance separately if they already have a valid third-party insurance policy.

Own damage car insurance is highly recommended for a new vehicle, an expensive car, or a car used on a daily basis.

Types of car insurance in India

To understand Own Damage insurance better, it is important to know the three main types of car insurance available in India. Each type offers a different level of protection.

Third-Party Liability Insurance

Third-Party insurance is mandatory by law in India. It covers injury, death or property damage caused to another person by your car. The policy pays for legal liabilities and compensation if you are responsible for an accident. However, it does not cover any damage to your own vehicle, which means you must pay for your car repairs yourself.

Standalone Own Damage (OD) Insurance

This policy specifically covers damage to your car. Standalone Own Damage insurance is recommended for car owners who want protection for their own vehicle without buying a full comprehensive plan. It covers damage caused by accidents, theft, fire, floods, earthquakes and other natural or man-made events. This type of OD insurance for car is useful if you want better pricing, flexible coverage and add-on options.

Comprehensive Car Insurance

Comprehensive car insurance is a complete policy that combines third-party liability insurance and Own Damage car insurance in one plan. It covers both your vehicle and damage caused to others, giving wider financial protection. Although the premium is higher than third-party insurance, it is often preferred because it offers better coverage and peace of mind, especially for new or expensive cars.

Key benefits of Own Damage car insurance

An Own Damage insurance policy gives several important benefits to car owners. It protects your vehicle and helps you avoid large expenses in unexpected situations.

Some benefits of purchasing Own Damage car insurance are the following:

Financial security: Repairing modern cars can be very expensive, especially after an accident. Own damage insurance reduces this burden because the insurer pays for most of the repair costs.

Coverage against loss or damage: If the car is damaged or lost due to events such as accidents, theft, fire or man-made incidents, Standalone Own Damage insurance pays compensation based on the IDV of the vehicle.

Budget-friendly coverage: OD insurance for car can be a suitable choice for car owners who want protection for their vehicle without paying the higher cost of a full comprehensive plan.

Customisation with add-ons: You can make the policy stronger by adding extra covers such as zero depreciation, engine protection, roadside assistance or return to invoice cover.

What are the coverages under Own Damage insurance?

An own damage car insurance policy provides comprehensive protection against a wide array of risks and it also excludes some things:

What is covered (inclusions)?

1. Accidental damage caused by external means.
2. Theft, burglary, or housebreaking.
3. Damage due to riots, strikes or malicious acts.
4. Damage is sustained during transit by road, rail, air, or waterway.
5. Fire, explosions and self-ignition.
6. Floods, typhoons and storms.
7. Landslides or rockslides.

What is not covered (exclusions)?

1. Damages to other people's property or injuries to third parties are not covered
2. Routine depreciation and mechanical/electrical breakdowns.
3. Accidents occurring while the driver is under the influence of alcohol or drugs.
4. Driving without a valid driving license or outside the permitted geographical area.
5. Consequential loss due to an accident is not covered.

What are the additional covers under Own Damage car insurance?

Standalone Own Damage insurance policies can be customised by adding extra protection called 'add-on covers' at an extra premium. It provides better safety at the time of the claim.

Some important add-ons are listed below:

1. Zero Depreciation Cover: This cover is also called ‘Nil Depreciation’ cover. It allows you to get the full claim amount for damaged parts without deduction for depreciation.
2. No Claim Bonus (NCB) Protection Cover: This add-on helps you keep your no-claim bonus even after making a claim. Normally, the bonus is reduced after a claim, but with NCB protection, you can enjoy the discount on your premium.
3. Engine Protection Cover: This add-on covers damage to the engine caused by water entering the engine, oil leakage or gearbox problems.
4. Consumables Cover: This cover pays for small items such as engine oil, nuts, bolts, screws, washers and coolant that are normally not covered in standard insurance claims.
5. Roadside Assistance Cover: This add-on provides emergency help if your car breaks down on the road. Services may include towing, battery jump-start, flat tyre help, fuel delivery or minor on-road repairs, depending on the insurer.

How to calculate OD insurance premium for your car?

The premium for Own Damage insurance depends on different factors related to your car and how it is used. A simple way to estimate the cost is by using a car insurance premium calculator, which helps you check the premium online by entering basic vehicle details. This makes it easier to compare plans and choose the right coverage before buying the policy.

Apart from using a calculator, insurers consider the following factors when deciding the premium:

• Insured Declared Value (IDV)
• Age of the vehicle
• Make and model
• Fuel type
• City of registration
• Add-on covers selected
• No claim bonus
• Driving history

New cars usually have higher premium because their value is high. Older cars have lower premium but also lower claim amount.

What is the Insured Declared Value (IDV) in OD insurance for a car?

The insured declared value (IDV) is the maximum amount the insurer will pay if the car is stolen or totally damaged. It represents the current market value of the vehicle after depreciation.

The IDV is calculated by adjusting the manufacturer's listed selling price with a depreciation percentage based on the vehicle's age:

How to buy Own Damage car insurance online?

1. Visit the Park+ app or website and go on the ‘Car Insurance’ section.
2. Provide your car registration number so the system can fetch the required information.
3. Select Standalone Own Damage insurance if you already have a third-party policy or choose the coverage you need.
4. Check prices from different insurers, choose the IDV and add-ons and complete the KYC steps.
5. Pay online using UPI, card or net banking, and your policy document will be generated instantly.

How to raise a claim under Own Damage insurance?

To get compensation, you must follow the correct claim process:

1. Inform the insurer immediately after the accident or damage
2. In cases of theft, fire, or major accidents involving third parties. FIR at the nearest police station is mandatory.
3. Submit the claim form with the required documents.
4. The insurer will appoint a surveyor to inspect the damage and estimate repair costs.
5. Move the vehicle to a network garage for cashless repairs.
6. If the insured vehicle has been repaired in a non-authorised network garage, the insurer will reimburse you the entire claim amount.

Standalone Own Damage car insurance is important because it protects your car from unexpected repair costs and gives you the flexibility to choose coverage separately. Park+ makes it simple, as you can compare plans, check premiums, and buy the right OD insurance for car online anytime.