• As cities keep growing, an increasing number of individuals are moving to urban regions. This growth and abrupt rise in the urban population strain the infrastructure. An additional indicator of the growing population is the surge in the number of vehicles on the road. More vehicles on the road result in a higher likelihood of accidents.

• Having a car insurance policy guarantees that you and your vehicle are financially secured from liabilities related to road accidents. In addition to third-party and comprehensive car insurance, there is a standalone own-damage policy available for you to consider, and here’s everything you need to know about it.

What is a Standalone Own-Damage Policy?

• In 2019, the Insurance Regulatory and Development Authority of India (IRDAI) permitted vehicle owners to acquire a standalone own-damage policy for their vehicles separately [1]. For brand-new cars, this policy is required to be bundled with third-party insurance. However, now you, as an owner, can buy it independently.

So, what does this policy do?

• As indicated by its name, the policy aims to provide you with financial reimbursement for the damages inflicted on your car. For instance, if your car’s door is damaged and the repair cost is Rs. 5000, the policy will either reimburse you or cover the repairs via a cashless service.

Why Is Own-Damage Car Insurance Important?

• Having standalone own-damage insurance is essential as it shields you from expensive repairs or losses related to your vehicle. While third-party insurance addresses liabilities towards others, own-damage (OD) insurance guarantees that your own vehicle is safeguarded, minimizing your out-of-pocket costs.

• With our standalone OD policy, you receive compensation for damages included in the policy, such as total loss, accidental damage, and theft. Additional coverages can further bolster your protection against specific risks not encompassed in the base plan.

Also Read: Full-Coverage Car Insurance: A Comprehensive Guide

Who Should Buy Standalone Own-Damage Insurance?

Standalone OD insurance is perfect for:

• Owners of vehicles acquired after September 2018, provided they already have third-party insurance.

• Individuals possessing only third-party insurance who wish to broaden coverage to shield their vehicle.

• Car owners seeking protection without opting for comprehensive insurance, ensuring their vehicle is safe from their own damages.

• Tips to Reduce Own-Damage Insurance Premiums

• Opt for Voluntary Deductibles- Selecting a voluntary deductible reduces your premium, as you agree to cover a part of the claim.

• Select the Right Insured Declared Value (IDV)- Bajaj Allianz General Insurance Company allows you to tailor your car’s IDV, striking a balance between sufficient coverage and affordable premiums.

• Utilize No Claim Bonus (NCB)- If you haven’t filed claims in the prior policy year, transfer your NCB to gain discounts on your premium.

• Buy Online for Discounts- Save up to 75% by acquiring your standalone OD policy online through our website.

• Choose Relevant Add-Ons Only- Add-ons like Zero Depreciation or Roadside Assistance enhance coverage but raise premiums. Select only those that are necessary.

Also Read: The Add-On Coverages in Car Insurance: Complete Guide

Factors Affecting Standalone OD Premiums

• Insured Declared Value (IDV)- Higher IDVs result in higher premiums but provide improved coverage for losses.
• Car Age- Older vehicles generally have reduced premiums because of depreciation.

• Car Model- Premium rates increase for luxury or high-cost vehicles because of elevated repair expenses.

• Engine Capacity- Vehicles with larger engine sizes (>1500cc) incur greater premiums.

• No Claim Bonus- A year without claims results in premium reductions during renewal.

• Add-Ons- Extra coverage raises premiums but provides better protection.

• Location- Vehicles operated in urban settings possess higher premiums due to a greater likelihood of theft or damage.

• Fuel Type- CNG or diesel vehicles face higher premiums than petrol vehicles because of increased maintenance expenses.

• Safety Features- Cars equipped with sophisticated safety technologies such as airbags enjoy lower premiums as they are less susceptible to severe damage.

Also Read: 5 Types Of Car Insurance Policies in India

How to claim car insurance for own damage?

Here are the steps for filing a claim*:

• Contact your insurer either via their claims helpline number or through their official website after your vehicle has sustained damage in an accident.

• On the website, you may submit a claim through their claims section. You will need to give details regarding your vehicle, the insurance policy, and the incident.

• It is recommended to capture images and videos of the damage inflicted on your vehicle.

• The insurer will send a surveyor to evaluate the damages.

• If the insurer approves your claim, you have two choices for receiving compensation: either get the vehicle repaired at a garage and claim reimbursement from the insurer later, or have your vehicle repaired at a network garage using a cashless claim option.

*Standard TandC apply

Should you opt for this policy?

• Although a standalone own-damage policy covers the damages to your vehicle, it does not cover damages to a third-party vehicle or property. In those instances, you might need to pay out-of-pocket for third-party damages. Since having a third-party policy is obligatory, you cannot legally operate your vehicle without one. Alternatively, you may acquire comprehensive car insurance, which offers benefits from both third-party plans and standalone own-damage policies.

Conclusion

• A standalone own-damage car insurance policy offers financial safeguarding for damages to your vehicle. While it is vital for protecting your car, it should be paired with third-party insurance to meet legal obligations. Evaluate your coverage requirements and select the appropriate policy—standalone OD, third-party, or comprehensive—for total protection from unforeseen risks.

FAQs

1. Can I switch from a comprehensive policy to standalone own-damage insurance?

Yes, however, you must also possess a separate third-party insurance policy to adhere to legal requirements.

2. How can I reduce my standalone own-damage insurance premium?

You can decrease the premium by choosing voluntary deductibles, selecting the appropriate IDV, utilizing NCB, purchasing online, and opting for only essential add-ons.

3. Who should buy standalone own-damage insurance?

This is suitable for car owners who already have a third-party policy and seek additional protection for their vehicle without choosing comprehensive insurance.