Own Damage Cover is Useful in Bike Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 03/09/2022

If you own a two-wheeler, you must be aware of the fact that purchasing at least a third-party insurance is mandatory as per the Indian Motors Act. But, the dilemma is it protects you from financial obligations only against third-party damages and does not cover your own damages.

When you purchase a bike, you must be worried about sudden repair and replacement expenses that may arise due to accidental damages. That is why you need a bike insurance policy that secures you and your vehicle against unforeseen damages in an accident. There is a bevy of insurance policies for two-wheelers available in the market — third-party bike insurance policy, comprehensive bike insurance policy, and standalone own damage cover insurance policy.

We have already mentioned the limitations of a third-party bike insurance policy, so let us talk about the own damage covers and what they have to offer.

Own Damage Cover in Bike Insurance

A standalone own damage (OD) insurance plan refers to a type of two-wheeler insurance plan that covers all the damages incurred to your bike due to an accident, fire, theft, man-made disasters, natural calamities, and more. Such coverage is not delivered under the third-party insurance plan. A standalone OD insurance for bikes offers financial protection when your insured vehicle gets damaged. It compensates you for the sudden expenses that occurred due to the repair or replacement of the parts of your pillion rider.

Why is Own-Damage Cover Useful?

As stated above, an own-damage insurance plan is useful in providing protection to your insured vehicle if it meets an accident. As the mandatory third-party policy covers you only against the third party’s liabilities arising due to damage, injury, or accidental death. In such a scenario, if your two-wheeler gets damaged as well, the insurer will offer no coverage for the same. So, if you are still wondering, ‘is own damage insurance mandatory for bikes?’ No, but it is necessary.

Features of Own Damage Insurance for Bikes

Here are a few features of own-damage cover in a two-wheeler insurance plan that you need to be aware of:

Under the own-damage or OD insurance for bikes, you receive coverage for your insured vehicle.

This insurance plan is extensive in nature and allows you to opt for some add-on covers in order to amplify the basic coverage. As it provides extensive coverage, it demands a higher premium in comparison to the basic third-party insurance cover. A standalone own damage two-wheeler policy covers you against man-made disasters and natural calamities along with the damages that are beyond repair.

Third-party Insurance vs. Own-Damage Insurance

If you are unable to decide on whether you should buy own damage bike insurance cover or third-party insurance or not, then you may compare two-wheeler insurance policies and make a final move:

Before you opt for an own-damage two-wheeler insurance cover, it is essential for you to know what it covers and what it does not cover.

Own-Damage Cover Inclusions

  • Natural Calamities: It covers you against the damages incurred due to floods, earthquakes, cyclones, and more.

  • Man-made Disasters: The OD cover also pays you for the damages, such as riots, terror attacks, strikes, vandalism, etc.

  • Accidental Damage: If there arises any repair or replacement expense in apropos of your insured bike, then this cover provides you with the much-needed financial assistance during an unforeseen event.

  • Fire and Explosion: It also indemnifies the sudden expenses incurred due to fire or explosion; and, thus, prevents you from bearing any financial loss.

  • Theft or Malicious Acts: Although no one can ensure if you could get your stolen bike back, with the two-wheeler own damage insurance cover, you can definitely prevent yourself from bearing the financial loss.

  • Damages beyond Repair (Total Loss): If the damages incurred to your bike are beyond repair, your insurer can compensate you for the losses basis the terms and conditions mentioned in your insurance plan.

Own-Damage Cover Exclusions

  • Third-party Damages: As the name suggests, an own-damage insurance plan covers you only against the damages incurred to your insured bike and not for third-party losses. You may use the mandatory third-party cover for the same.

  • Driving Drunk: If you are riding your bike under the influence of alcohol or any other intoxicating substance, then you would not be eligible to make a claim.

  • Riding without a Licence: As per the law, you need to have a valid driving licence to take your bike on the road. So, if you ride your pillion without a licence, you shall have to bear the legal consequences.

  • Electrical and Mechanical Breakdown: Any loss caused due to electrical or mechanical breakdowns are not covered under the insurance policy.

  • Beyond Policy Terms: Your standalone own damage two-wheeler policy does not cover the losses that are beyond the horizon of its terms and conditions.


Standalone own damage two-wheeler policy is not mandated by the law, but it offers a lot better coverage than the standard third-party bike insurance. Therefore, it is highly recommended to have one. With all that said, there is only one type of bike insurance that is better than two-wheeler own damage insurance — comprehensive bike insurance. It includes all the coverages of OD insurance for bikes plus takes care of the third-party liabilities.

At Tata AIG, we understand that having your own two-wheeler means a lot to you. So, why do you not buy own damage bike insurance and get it insured wisely? If you need any help, you may always head to our website and learn more about insurance for 2-wheelers while evaluating its premium cost using our online insurance calculator.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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