According to the Motor Vehicle Act 1988, every vehicle should at least have a third-party vehicle insurance policy. However, third-party car insurance can only offer coverage for the damages and losses caused to third-party property or life. Policyholders can consider buying their own damage car insurance to protect themselves and their cars against unforeseen mishaps.
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What is own damage car insurance?
As the name suggests, an own damage car insurance covers explicitly the damages and losses caused to the policyholder’s vehicle. One can purchase an OD car insurance policy anytime without waiting for the renewal of the policy.
This insurance policy offers financial coverage to the policyholder in case of any damages and losses incurred due to accidents, thefts, natural calamities, etc. Besides, one can purchase add-ons with OD insurance to maximise the benefits and coverage. OD insurance policy comes with the following add-on coverage:
- Return to invoice cover
- Consumable cover
- Zero depreciation cover
- Breakdown assistance
- Key and lock protect cover
- PAYD cover, etc.
Who should get own damage car insurance?
Car owners with a third-party policy may suddenly realise that they want to insure their vehicles as well. At this point, they can opt for a own damage car insurance policy. The best part is a policyholder can buy this OD insurance anytime, along with the third-party car insurance policy.
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Generally, a policyholder needs to wait for the renewal of his existing policy plan to get a new plan. However, this does not apply to an own damage car insurance policy. A policyholder can purchase this insurance from a different insurer. It is not mandatory to buy OD insurance from the same insurance company from where one has got third-party insurance.
What is covered in own damage car insurance?
Policyholders can claim own damage insurance policy under the following circumstances:
- Accident:Damages caused to the insured four-wheeler due to an accident or collision are covered by OD insurance.
- Natural calamities:Policyholders can claim insurance if the car is damaged due to natural calamities such as earthquakes, floods, storms, etc.
- Fire: OD insurance covers the damages caused to the vehicle due to fire or other man-made calamities.
- Theft:Insurance providers are liable to compensate drive a car after alcohol consumption. Accidents caused under the influence of alcohol or drugs will not be compensated in any way by the insurer.
Consequential damages and negligence: Damages incurred after an accident are excluded from the insurance coverage. Moreover, suppose the vehicle owner drives the car irresponsibly in an area under curfew or a flooded area and gets into an accident. In that case, they will not get any insurance coverage.
What’s not covered in own damage car insurance?
Own damage car insurance does not cover the following aspects:
- Third-party liabilities: One can opt for own damage insurance after purchasing third-party insurance for car. However, that does not mean that OD insurance will cover third-party liabilities. An own damage insurance policy specifically covers the damages and losses caused to the policyholder and his vehicle.
- Driving without a license or license holder: Driving without a valid license is a law violation. This policy does not cover the damages incurred while driving a car without a driving license. Moreover, if a person with a valid license does not accompany a driver with a learner’s license, he is not eligible for an insurance claim.