As Per the Motor Vehicle Act of 1988, if you own a four-wheeler, you must secure it with a third-party car insurance policy. This insurance plan enables you to fulfil your legal and financial liabilities following accidents or damages caused by you to third parties and/or their vehicles/property. But for your vehicle's and your own safety, you can buy a comprehensive plan which provides all-encompassing coverage. However, such extensive coverage may impact your plotted budget for insurance premiums. An affordable alternative is getting an own damage cover with a third-party car policy. Let's learn more about own damage cover in this article.

Coverage and exclusions under own damage policy

Coverage:

Own damage car insurance cover protects your insured vehicle from damages, in the following scenarios:

• Accidental or collision damage that meets the coverage criteria.
• Loss or theft of the insured vehicle.
• Damages caused to your car due to ignition, lightning, fire, etc.
• Losses or damage incurred due to man-made or natural disasters, depending on insurer-specific terms and conditions.

Exclusions:

Insurers do not entertain your claim if your car gets damaged under the following conditions:

• Accidental damage when you drive without a license and/or under the influence of alcohol.
• If you use your personal car for commercial purposes.
• Damage occurring due to wear and tear or depreciation.
• Mechanical or electrical breakdowns.

Benefits of own damage policy

You can enjoy the following benefits by opting for own damage car insurance plan:

Short-term tenure:

Even if you buy a three-year third-party car insurance, you are not obligated to extend the own damage coverage for the same period. It comes with a one-year tenure and gives you flexibility.

Affordable premium:

Insurers calculate the premium for own damage car policy based on your location, vehicle specifications, insured declared value, etc. The overall premium is affordable if you choose the coverage wisely.

Choosing different insurers:

You can buy own damage policy only when you have third-party insurance. But you enjoy the flexibility to choose different insurers for both plans.

Add-ons:

You can access add-on covers with a standalone own damage motor insurance plan to upgrade your protection.

How does own damage plan compare to a comprehensive car insurance plan?

While both own damage cover and a comprehensive car insurance plan are voluntary choices and offer vehicle protection, they differ slightly. You can buy an own damage car insurance policy as an additional cover when you already have a third-party plan. Contrarily, comprehensive plans are independent insurance plans that combine third-party coverage with vehicle protection.

Also, the depreciation rate affects the standalone own damage policy in car insurance entirely whereas only the OD cover in the comprehensive policy is subject to depreciation.

Invest in own damage car insurance policy

If you like the benefits and convenience that own damage policy provides, you can opt for it with your third-party car insurance. You can do this when you buy the third-party policy or add it at a later stage. In both cases, the process is simple. You can find the own damage policy under the car insurance section, enter essential details about your car, and pay the payment.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.