Standalone Own Damage Car Insurance

A standalone own damage policy, as the name suggests, protects your car from unexpected financial burdens that your vehicle may face. This includes theft, damage from natural disasters, vandalism, or accidental damage.

It also protects your investment from going into complete waste (total loss) by paying the IDV of your vehicle. So, even if you lose your vehicle in an accident, you don’t have to worry about loss.

Bajaj General Insurance provides a customisable and robust standalone own damage policy so that you can rest assured. Let’s dive in below!

What are the Features of a Standalone Own Damage Policy?

Understanding the coverage details of the Standalone Own Damage Cover is crucial to making an informed decision. The table below provides a clear overview of what is covered under this policy:

As you can see, comprehensive coverage covers all kinds of damage.

You should buy Standalone own damage cover when you already have a third-party insurance. It acts as an extra layer of protection. 

The benefits of opting for a Standalone Own Damage Cover from Bajaj General Insurance are numerous. This section outlines the advantages that policyholders can enjoy.

1. Comprehensive Protection: Covers damages due to accidents, theft, natural calamities, and man-made disasters.

2. Flexible Add-ons: Options to include add-ons like zero depreciation, engine protector, and roadside assistance.

3. No Claim Bonus (NCB): Enjoy discounts on premiums for claim-free years.

4. Cashless Repairs: Access to a wide network of cashless garages across the country.

5. Quick Settlement: Fast and hassle-free claim settlement process.

6. Financial Security: Protects you from unexpected repair costs, ensuring peace of mind.

7. Customizable Plans: Tailor the policy with add-ons to suit your specific needs.

8. Wide Network: Access to numerous cashless garages for convenient repairs.

9. Enhanced Protection: Provides coverage beyond the basic third-party liability insurance.

What is a Real-Life Example of Own Damage Policy in Action?

According to a recent report by The Times of India, a car was badly damaged after skidding off the Delhi-Mumbai Expressway near Nuh. Thankfully, the 5 people inside the car made it out safely. But their car was damaged beyond recognition.

Now, normally, they would've suffered a total loss with just a third-party insurance since they didn’t damage anyone else’s property. But with a standalone own damage policy, they can recover their expenses up to a limit.

They have to raise a claim to their insurer and inform them about the incident. After that, the insurer will check the damage and send them a claim amount. If they agree, then they will receive the amount in their bank account.

Dos and Don’ts of Purchasing a Standalone Own Damage Policy for Your Vehicle

Did you know, according to Mordor Intelligence, India’s motor insurance market is growing at a rate of 9.59% CAGR. Experts believe that the market will reach a valuation of USD 14.82 million by 2030.

This showcases the growing need for people in India to buy private car insurance policies such as standalone OD cover. But before you go along with the trend, here are some checklists that you should keep in mind:

Dos of Standalone Own Damage Private Car Policy

1. Compare Policies Online: Before buying the first policy that shows up in your search, wait. Check different policies online. Bajaj General has a robust comparison tool that helps you compare various plans to help you make an informed decision.

2. Disclose Accurate Information: Before you buy, make sure you input all information about your vehicle, driver and yourself correctly. If you have some modifications on your car, you should disclose them to your insurer for a hassle-free claim process.

3. Check the Insurer’s CSR: Claim settlement ratio (CSR) is a crucial indicator of whether you can trust an insurer. Choose a provider who has a high CSR percentage, such as Bajaj General Insurance.

4. Ensure a Valid TP Coverage: Before you buy a standalone own damage coverage, make sure that you have an active and valid TP policy. This is because OD acts as a supplementary coverage to your mandatory TP policy.

5. Check the IDV: Insured declared value, or IDV, plays an important role in deciding your premium. Although everyone wants a low premium, it can mean that your IDV might be low. Therefore, choosing the correct IDV is necessary.

Don’ts of Standalone Own Damage Policy

1. Don’t Make Minor Claims: Claims for minor repairs may seem convenient, but can cost you your no-claim bonus (NCB). A no-claim bonus can give you discounts on your premium if you maintain a claim-free year.

2. Don’t Buy a Cheap Policy: Getting the lowest possible plan is not the right choice. It may not contain valuable coverage and may leave you uncovered in unexpected situations.

3. Don’t Drive Without a License: Driving without a license is illegal, and if something happens during your drive, you will be uncovered. This is because insurers will not cover you if you are not following the traffic rules.

4. Don’t Use a Private Car for Professional Use: If your car is registered as a personal car, then you must not use it for commercial use. If you do so, your claim may be rejected. 

Choosing Bajaj General Insurance for your standalone own damage policy (OD) cover ensures your vehicle is protected by one of the most trusted names in the Indian insurance industry. Our OD policy is designed to offer financial security against accidents, natural calamities, and theft, backed by a seamless digital experience.

1. Cashless Claims: Access a vast network of over 7,200+* authorised garages across India, allowing for hassle-free repairs without out-of-pocket expenses.

2. High Settlement Ratio: Benefit from a streamlined, transparent claims process known for its industry-leading speed and reliability.

3. Customisable Add-ons: Enhance your basic OD cover with powerful riders like Depreciation shield for Zero Depreciation, Engine Protector, and 24 X 7 Spot Assistance  for 24*7 Roadside Assistance for comprehensive peace of mind.

4. Instant Policy Issuance: Purchase or renew your cover online in minutes with minimal documentation.

With 24/7 customer support and a reputation for caringly yours service, we ensure that even in the event of a mishap, your journey back to the road is smooth and stress-free.

*Note: Subject to change.

What is the Role of IDV in a Standalone Own Damage Policy?

In Standalone Own Damage (OD) motor insurance, the Insured Declared Value (IDV) serves as the sum insured. This means it is the maximum financial liability the insurer will undertake. Unlike Third-Party insurance (TP), which covers legal liabilities to others, the OD component focuses on your vehicle's protection, making the IDV the most critical factor in your policy.

The primary role of IDV is to establish the current market value of your vehicle. It is calculated by taking the manufacturer's listed selling price and adjusting it for age-based depreciation. For a brand-new car, the IDV is typically 95% of the ex-showroom price.

Main Functions of IDV:

1. Claim Ceiling: In cases of Total Loss (theft or damage beyond 75% of the IDV), the insurance company pays this fixed amount as compensation.

2. Premium Determinant: The IDV is the base figure used to calculate your own damage premium. A higher IDV provides better coverage but results in a higher premium, while a lower IDV reduces your yearly cost but leaves you underinsured.

3. Constructive Total Loss (CTL) Benchmark: If repair costs exceed 75% of the IDV, insurers declare the vehicle a total loss and pay out the full IDV.

Accurately declaring your IDV ensures you receive a fair payout that reflects the true value of your asset without overpaying on premiums.

What is the Depreciation Rate for Your Vehicle?

Apart from the depreciation rate for your car, your car and bike parts face separate depreciation rates. These rates, fixed by IRDAI, include:

So, when you claim repair, keep these rates in mind, as the insurer will only pay the amount minus depreciation.

What Factors Affect the Premium of a Standalone Own Damage Policy?

While third-party insurance premiums are fixed by the IRDAI based on engine capacity, the premium for a standalone own damage (OD) policy is determined by the insurer based on the level of risk they are taking. Several dynamic factors influence this cost:

1. Insured Declared Value (IDV): As the sum insured, the IDV is the biggest premium driver. A higher IDV (for newer or luxury cars) leads to a higher premium, while a lower IDV for older vehicles reduces the cost. 

2. Vehicle Age and Depreciation: Newer cars have higher market values and more expensive spare parts, commanding higher premiums. As the vehicle ages, depreciation reduces the IDV and the corresponding premium. 

3. Make, Model, and Fuel Type: High-end luxury cars, SUVs, and performance vehicles have higher repair costs and thus higher premiums. Additionally, CNG or Diesel variants often attract a slightly higher premium than Petrol models due to their higher initial cost. 

4. No Claim Bonus (NCB): This is a powerful discount (ranging from 20% to 50%) earned for every claim-free year. It directly reduces the OD premium upon renewal. 

5. Geographical Location: Vehicles registered in Zone A (metropolitan cities like Delhi or Kolkata) typically face higher premiums due to increased risks of accidents and theft compared to Zone B areas. 

6. Add-on Covers: Choosing riders like Zero Depreciation or Engine Protect adds to the base premium but provides enhanced security.

How Do Insurers Calculate the Premium for a Standalone Own Damage Policy?

Let’s look at the formula for calculating the premium:

Own Damage Premium = (IDV × Premium Rate) + Cost of Add-ons – (NCB + Applicable Discounts)

For example, if your IDV is ₹10 lakh, the premium rate is 2%, the add-ons cost is ₹5,000, and you have an NCB of 15%, then your approximate premium will be:

(₹10 lakh x 0.02) + ₹5,000 - (15% + ₹1,000) = ₹20,000 + ₹5,000 - (20%+1,000) = ₹23,800 (approximately).

This is a tentative premium amount and can vary according to different insurers. You can use an online calculator for accurate premium estimates.

Note: This information is general and may not represent Bajaj General Insurance’s premium calculation methods. Please use discretion.

How Can You Port Your Standalone Own Damage Policy to Bajaj General Insurance?

Step 1: Initiate the Switch

Visit the Bajaj General Insurance’s official website or mobile app at least 45 days before your current policy expires to ensure a seamless transition without a coverage gap.

Step 2: Enter Vehicle Details

Next, you need to provide your vehicle registration number, make, model, and manufacturing year. Ensure you have your current policy details and third-party policy information handy.

Step 3: Customise Your Cover

Select your preferred Insured Declared Value (IDV) and choose from Bajaj’s range of add-ons, such as Depreciation shield for Zero Depreciation or Engine Protector.

Step 4: Declare Your NCB

Now, you need to input the No Claim Bonus percentage earned from your previous insurer. Bajaj General Insurance will verify this with your previous provider to apply the discount to your new premium.

Step 5: Inspection (If Required)

If your previous policy has already expired, Bajaj General Insurance may ask for a quick vehicle inspection either online or offline.

Step 6: Payment and Issuance

Complete the premium payment online through UPI, credit/debit or Netbanking. Once processed, your new Standalone OD policy document will be issued instantly and sent to your email.

1. Copy of the previous year’s OD policy.

2. Copy of the active Third-Party insurance policy.

3. Vehicle Registration Certificate (RC).

4. NCB resignation/transfer certificate from the old insurer (if applicable).

Secure Your Valuable Asset Today!

So, what are you waiting for? Click on the ‘Buy Now’ button and generate a quote today. Download the Bajaj General app and keep track of your insurance today!