What is a Standalone Own Damage Car Insurance Policy?

Many car owners still wonder, “What is own damage insurance?” despite it being one of the most valuable protections for their vehicle. A standalone own damage car insurance policy is designed to cover the repair or replacement costs of your own car in case of accidents, theft, fire, or natural disasters. It becomes essential for those who only have third-party insurance, as that plan does not protect your vehicle. Understanding how standalone OD insurance works can help you make a smarter, more secure choice for your car.

To know more about a standalone OD car insurance policy and its benefits, read on.

What is a Standalone Own Damage Car Insurance Policy?

A standalone own-damage car insurance policy covers repairs and maintenance expenses if your car is involved in an accident, collision, natural or man-made disaster, or theft. 

In simple words, a standalone own damage car insurance is the “my car” portion of the insurance instead of the “other people’s car” part.

Suppose you are in a road accident that causes a dent in your car. With third-party car insurance, you can cover the expenses for the damages incurred to third-party property. However, you have to pay out of your pocket to repair your car.

In such a scenario, a flexible option like standalone own-damage insurance will cover the damage to your car. With this specialised insurance, car owners can control their own policy coverage, particularly when they own a third-party protection.  

How Standalone Own Damage Insurance Works?

Now that you know what is OD policy in car insurance, it is time to understand its mechanics. A standalone OD policy enables you to cover damages incurred in your car at the time of making a claim.  

It covers:

1. Accidental damages

2. Riot and strike-related damage

3. Fire and explosion damage

4. Natural disasters like floods, earthquakes, and storms

5. Theft of the entire vehicle or parts

6. Malicious act or vandalism

7. Damage while in transit by road, rail, or air

At the time of making a claim, you need to submit evidence of the damages incurred. Based on your car’s Insured Declared Value (IDV) and the proof of damage you submit, the insurer determines the claim amount. Since a car’s value depreciates annually, you can choose to pay a deductible, which is the claim amount you need to pay before the insurance kicks in.

Comparison between Third Party, Own Damage and Comprehensive Car Insurance

According to the Motor Vehicles Act 1988, all vehicle owners in India must have third-party insurance. However, an own damage cover is optional. The Insurance Regulatory and Development Authority of India (IRDAI) proposed a standalone OD policy for new and old cars. If you are wondering whether to take a comprehensive, third-party, or own damage policy, check out the comparison below and then decide:

In India, you cannot drive with only a standalone own-damage insurance policy; you must have valid third-party insurance to remain legally compliant.

What are Own Damage Insurance Premium Calculation Factors?

What you need to pay for your standalone OD car insurance depends on the vehicle’s age, make and model, add-ons, and your driving history. Let us look at that in detail:

Vehicle’s Age

Suppose your vehicle is more than 5 years old; in that case, insuring your car with a comprehensive plan will be pretty expensive. Buying a standalone OD cover in such cases could be more affordable.

Make and Model of Your Car

Depending on the make and model of your car, the premiums are determined. The insurer will look at the cubic capacity of the engine, your geographical location, and the current market value of your car. Usually, cars driven primarily in urban areas attract a higher premium.

Coverage Choices

To extend policy coverage, if you choose add-ons such as engine protection, zero depreciation, or consumables cover, the premium will increase.

Driving History

Insurers consider your driving history and claim records when determining your premium. If you have clean claim records, you can expect lower premium pricing.

What are the Smart Ways to Reduce Premiums?

1. Anti-theft devices help lower premiums by reducing theft risk.

2. Choose Voluntary deductibles to get attractive discounts.

3. Compare quotes from different insurers to get the best price.

4. Choose add-ons that are relevant and beneficial to your vehicle.

When Should You Consider Standalone OD Insurance?

A Standalone OD insurance also makes sense in situations described below:

1. You have a valid long-term third-party policy (1-3 years remaining).

2. Your comprehensive policy's OD portion has expired.

3. You own a luxury car because repair costs could skyrocket.

4. Your comprehensive policy's own damage portion has expired.

5. You consider switching insurers for better standalone OD premium rates while keeping your existing Third-Party coverage.

6. Your vehicle is older than 5 years, yet you still want damage protection.

7. You live in areas where natural calamities such as earthquakes and floods are common.

8. You want to strategically optimise your vehicle insurance costs.

8 Common Mistakes to Avoid While Purchasing a Standalone OD Car Insurance

Many vehicle owners make these mistakes while purchasing a standalone OD insurance:

1. Believing that if they have a standalone OD policy, they do not need third-party insurance.

2. Forgetting that Third-party insurance is a legal mandate for driving in India. 

3. Not comparing quotes from different insurers.

4. Under-insuring a vehicle or drastically lowering IDV to save premiums affects claim payouts.

5. Ignoring add-ons such as zero depreciation and engine protection.

6. Delaying in reporting a claim.

7. Without waiting for a surveyor’s approval, start the repair job immediately after the accident.

8. Submitting incomplete or incorrect information.

Is there a Future for Standalone Own-Damage Insurance in India?

With India’s rapid growth in the insurance market, standalone OD products are gaining popularity for their affordability and flexibility. Here is why:

Affordability

Since standalone own-damage insurance is more affordable than a comprehensive insurance plan, those looking for wide coverage to protect their cars are opting for it.

Easy Customisation 

Choosing a standalone OD cover from Bajaj General Insurance ensures that you have access to voluntary deductibles and exciting discounts. For example, for cars with an IDV up to ₹20 Lakh, if you choose a voluntary deductible of ₹ 1000, you can avail of a 7.5% discount on the OD premium of the insured vehicle.

Smooth Digital Experience

With instant policy issuance through apps, digital claim processing, and blockchain for fraud prevention, the entire insurance journey has become simple and seamless.

Older Vehicle Considerations

Over time, as cars age, comprehensive insurance becomes more expensive than the vehicle's value. Some owners drop OD coverage entirely to save money, but later realise they want that protection back, which is convenient with a standalone OD insurance plan since it offers that level of flexibility.

Helps in Managing Different Renewal Cycles

When your OD and third-party policies have separate expiry dates, a standalone OD insurance bridges that gap perfectly. 

Conclusion

According to the standalone own damage policy meaning, this type of policy offers cost control and flexibility to the car owners. Whereas the comprehensive plan remains the default choice for many, knowing what is own damage insurance can empower you to make smarter decisions, since over time, your car’s requirements change. The primary objective is to maintain third-party coverage while optimising your own damage protection within your budget and the car’s value. 

For enhanced coverage on your standalone own damage policy at an affordable premium, choose Bajaj General Insurance.

FAQs on a Standalone own damage car insurance policy

Which is better, a carburettor or fuel injection, in cars?

Both carburettors and fuel injection are primary types of fuel delivery systems in cars. Whereas some people prefer carburettors for their effective fuel induction and simplicity, others believe in the performance benefits of the fuel injection system. 

What is the basic own damage premium in car insurance?

The premium of a basic own damage premium in car insurance depends on the car’s IDV, the car’s make and model, age of the car, add-ons chosen by the policyholder, and cubic capacity of the car.

 What is own damage cover in car insurance?

Own damage cover in car insurance is an optional cover that protects your car from damage caused by accidents, theft, natural or man-made disasters. Unlike third-party car insurance, which covers third-party liabilities, this type of car insurance compensates for expenses due to damage to your car.

What is not covered in OD car insurance?

OD car insurance does not cover third-party liability for injury, death and property damage. Plus, this type of car insurance policy does not have the No Claim Bonus (NCB) add-on cover.

How to extend your standalone car insurance policy coverage?

To extend your standalone car insurance coverage, you can opt for add-ons. Bajaj General Insurance offers multiple add-ons with its standalone OD car insurance policy, such as zero depreciation, roadside assistance, and consumables cover, for an additional premium. 

Who Can Buy Standalone Own Damage Insurance?

Those who only own a Third-party insurance plan, and new car owners who have purchased third-party insurance along with the car, can buy standalone OD insurance.

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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.