A standalone own-damage policy offers vital coverage for your car and shields it against losses incurred due to accidents, fire, theft, etc. It differs from traditional comprehensive coverage in that it focuses solely on damages to your vehicle.
Let us explore the standalone own-damage policy’s meaning, features, exclusions and inclusions.
Own-Damage Insurance Meaning
Standalone Own Damage Car Insurance is a type of policy that covers the cost of damage to your vehicle caused by accidents, natural disasters, theft and other such incidents. However, it does not cover any third-party liabilities. It is solely focused on providing coverage to the insured car.
Standalone OD car insurance is useful for those who already have third-party insurance, which is mandatory in India, and want additional protection for their own vehicle.
This type of policy allows car owners to claim repairs for damages that occur due to incidents other than collisions with another vehicle or property. It also includes damages from fire, vandalism or weather-related damage.
Features of a Standalone Own-Damage Policy
Comprehensive Coverage
An own-damage standalone policy covers a wide range of damages to your car. It includes damages from accidents, fire and natural disasters such as floods and earthquakes. It also provides coverage for vandalism, riots, terror attacks and other man-made disasters.
No Third Party Involvement
A standalone OD policy for cars policy is independent of third-party insurance. It specifically addresses damages to your vehicle without involving third-party claims. You can buy a standalone OD policy if you already have a third-party liability policy.
Flexible Add-ons
Standalone OD car insurance offers a variety of add-ons to enhance coverage. Common add-ons include NIL or zero depreciation, engine protection, consumables cover and key protection cover.
No Claim Bonus (NCB) Benefits
Policyholders are rewarded with a No-Claim Bonus for not making any claims during the policy period. The NCB increases with a claim-free year and offers premium discounts. NCB can be transferred when switching insurers while retaining the accumulated benefits.
Coverage for Theft
An own-damage standalone policy covers the theft of your vehicle. It provides financial protection in case your car is stolen and cannot be recovered.
Eligibility for Buying Standalone Own-Damage Car Insurance
If you want to purchase an own-damage standalone policy, you must already have a third-party liability insurance policy for your vehicle. It is mandated by law in India that every vehicle has third-party liability coverage.
You can purchase an OD policy for new and old vehicles. It is also essential to ensure continuous coverage with timely policy renewals and avoid lapses in protection.
Benefits of Standalone OD Car Insurance
Coverage for the Insured Car
It covers damages to your vehicle caused by accidents, theft, natural disasters and other unforeseen events.Financial Security
It shields you from significant out-of-pocket expenses for repairs or replacement of parts due to damage.Flexibility to Customise
You can customise your policy according to your specific needs by adding various add-ons, such as zero depreciation (NIL depreciation), engine protection, consumables cover and key protection cover.No Claim Bonus (NCB)
It rewards safe driving. You can accumulate a discount on the premium for every claim-free year, which can be as high as 50%. It can reduce the premium costs over time.Cashless Repair Services
Access to a network of cashless garages makes the repair process smooth and hassle-free, without upfront payments.Quick Claim Settlement
The advanced systems and high-end customer service enable quick and easy claim filing and tracking, which results in faster claim settlement.Peace of Mind
Knowing that your car is covered for its own damages, regardless of third-party liabilities, offers peace of mind and allows you to enjoy a worry-free driving experience.
Inclusions and Exclusions of Standalone OD Policy for Car
Inclusions of Standalone Own Damage Car Insurance
Natural Calamities
Covers damages from natural events such as earthquakes, floods, lightning and fires.Theft or Malicious Acts
Protects against loss due to theft, burglary or intentional damage caused by malicious acts.Self-Ignition and Explosion
Includes coverage for damages from self-ignition or explosions within the vehicle.Man-Made Disasters
Covers damages resulting from human actions like riots, vandalism, terror attacks and inundation.Accidental Damages
Ensures coverage for any harm to your car or the items inside it due to an accident.Transit Damages
Protects your vehicle when it is being transported by rail, road, air or even elevator.
Exclusions of Standalone Own Damage Car Insurance
Third-Party Damages
This does not cover damages to another person's vehicle or property.Third-Party Injuries
Injuries to others involved in an accident are not covered.General Wear and Tear
General wear and tear of the car due to daily use of the car is excluded.Improper Use
Coverage is void if the car is used beyond its specified purpose, like using a private car for commercial purposes.Mechanical or Electrical Breakdown
Failures due to mechanical or electrical issues are not included.Unlicensed Driving
Damages caused while someone operated the vehicle without a valid driving licence are not covered.Driving under Substances Influence
Any loss or damages occurring while driving under the influence of alcohol or other substances are not covered.Depreciation
Losses due to the decreasing value of the car over time are not covered.War and Nuclear Risks
Damages resulting from war or nuclear risks are excluded.Consequential Loss
If initial damages lead to further losses, only the initial damages are covered, not the subsequent ones.
How to Calculate the Premium for Own Damage Motor Insurance
You can calculate the premium for Own Damage Car Insurance in the following way.
Premium = (IDV x Rate of Premium) + Add-ons - No Claim bonus
IDV (Insured Declared Value) is the maximum claim your insurer will pay if your vehicle is damaged beyond repair or stolen. It considers the present market value of your vehicle. The
IDV value is crucial as it directly influences the insurance premium.
The premium rate varies based on factors such as the vehicle’s age, make and model and geographical location.
Add-ons are optional covers such as zero depreciation and engine cover, which increase the premium.
No Claim Bonus is a discount applied for every claim-free year.
Why Choose Reliance General Insurance for Standalone Own Damage Policy
Choosing Reliance General Insurance for a Standalone
Own Damage Car Insurance Policy offers many compelling reasons:
Extensive Network of Cashless Garages
Reliance General Insurance provides access to over 10,000 cashless garages across India. This vast network ensures that you can find reliable, high-quality repair services without the hassle of upfront payment.
Efficient Online Claim Process
You get the convenience of an online claim process via your smartphone in just 5 minutes. You can enjoy quick and hassle-free claim settlement without physical paperwork.
Wide Range of Add-Ons
Customise your own-damage car insurance policy with various add-ons, such as zero depreciation cover, roadside assistance, engine protection, and so on.
Flexible Deductibles
Opt for a voluntary deductible to reduce your premium costs. This helps you to manage your insurance expenses by choosing to pay a part of the repair costs in exchange for a lower premium.
Streamlined Paperless Transactions
We emphasise convenience with a completely digital and zero-paperwork process. From purchasing your policy to filing a claim, all interactions are online, which saves you time and effort.
Reliable Customer Support
We offer dedicated customer support at every step. We help you with your queries and concerns promptly.
Our dedicated support and high-end features make us an excellent choice for standalone own-damage
car insurance. We prioritise coverage, convenience and excellent value.
Conclusion
The Stand-Alone Own-Damage Car Insurance Policy is an indispensable safeguard for your vehicle. It offers wide protection against a variety of risks without involving third-party liabilities.
The policy covers your vehicle extensively, whether it's damaged by natural disasters, theft, or accidents. It also offers options for customisation through various add-ons and the benefit of a No-Claim Bonus, providing both flexibility and financial relief.
Moreover, eligibility criteria ensure that every vehicle owner with third-party liability coverage can secure this additional protection. It is a smart choice for enhanced peace of mind and security on the road.
Frequently Asked Questions (FAQs)
Can I buy a standalone Own Damage insurance for an old car?
Yes, you can buy a standalone Own Damage insurance for both new and old vehicles as long as you have third-party liability coverage.
How quickly must I report an incident to make a claim?
It is advisable to report an incident that might lead to a claim as soon as possible, mostly within 24 hours.
Can Standalone OD Insurance be cancelled?
Yes, you can cancel your Standalone OD Insurance policy as per its terms and conditions.