Standalone Own Damage Car Insurance

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Standalone Own Damage Car Insurance

Own damage (OD) means exactly what it sounds like – damage to your own (in this case, car). The presence of the OD section in your policy means it will cover the cost of repair of your car. Such a policy is also called a stand alone own damage(OD) policy. On the flip side, a policy without own damage part only covers what you owe to a third party and is called ‘third party liability insurance’. So, if you accidentally back into your neighbour’s car, and both the cars sustain damage, your insurance will cover the repair of his car, but you’ll have to get yours fixed out of your pocket. A policy that contains both the own damage(OD) & the third party liability(TP) sections is called a Comprehensive Policy

What is Standalone OD Car Insurance?

Protect your car against damages with a standalone own-damage (OD) cover from Tata AIG. An own damage or stand alone OD car insurance policy is meant to help you, the policyholder, cover the losses suffered by your car. The damages covered are as given below:

  • Accidental damages caused by external means: Any sudden, unexpected or unintentional event or a collision that can cause damage to the car is considered accidental damage.

  • Burglary, Theft and Housebreaking: If your car is damaged as a result of a home break-in or the damage is a by-product of a violent burglary attempt, the stand alone OD car insurance will cover the damage. However, if the car is stolen, then it will amount to a total loss.

  • Total Loss: Total loss refers to the complete loss of your car due to extensive and irreversible damage or theft of the car. The own damage car insurance covers the total loss of your car and you will be compensated for this type of damage.

  • Fire, Explosions, Implosions, Lightning, and self-ignition: Fires resulting from an accident or an explosion that leads to damaging your car are covered under an own damage insurance policy.

  • Natural calamities like floods, typhoons, cyclones, hailstorms, etc.: If your car is damaged due to flood water, hailstorms, cyclones, etc., then the own-damage cover will protect you from these losses.

  • Earthquake, landslide and rockslides: If your car suffers damage due to the stones, rocks and debris from an earthquake, landslide or rockslide, the standalone OD insurance protects you against financial losses.

  • Transit of vehicles by rail, road, air, or inland waterways: If there are dents and scratches caused to the car during their transportation by road, rail, air or inland waterways, the OD car insurance cover will protect you and your car from this damage.

  • Terrorism Attacks, Riots and Strikes, or Malicious Damage: The own damage car insurance cover also protects your car from the losses that occur due to human causes such as a terror attack, rioting, vandalism, etc.

The standalone OD car insurance is called so because it is available as a separate cover since September 01, 2019, as per a directive by the Insurance Regulatory and Development Authority of India (IRDAI). The standalone OD car insurance is called so because it is available as a separate cover for all the renewals of cars purchased after September 01, 2019, as per a directive by the Insurance Regulatory and Development Authority of India (IRDAI). The directive enables you to purchase stand alone car insurance for own-damage as for all car owners who have purchased their car insurance post 1st Sept 2018 3 year third-party is mandatory.

However, you can buy a standalone car insurance policy if you have the compulsory third-party car insurance cover.

How Standalone OD Car Insurance works?

A standalone OD car insurance is an optional but important car insurance cover that offers protection to your car. While you may already be protected by third-party car insurance, sometime down the line, you will need to protect your own car from damages as well and, therefore, will have to purchase standalone OD car insurance.

A stand alone car insurance for own damage can protect your car from a variety of damages - something that third-party car insurance cannot cover - and you can also opt for add-ons to extend the coverage of the own damage car insurance policy. Hence, if your car is stolen, suffers accidental damage or total loss due to irreversible damage or theft, you will be monetarily compensated for the loss. With the help of the add-ons, you can secure the damages that are not covered under the standalone OD car insurance. These are:

  • Accidental damages caused by external means
  • Damage from theft and housebreaking but not amounting to total loss
  • Theft or extensive accidental damage amounting to total loss
  • Fire, Explosions, Implosions, Lightning, and self-ignition
  • Natural calamities like floods, typhoons, cyclones, hailstorms, etc
  • Earthquake, landslide and rockslides
  • Transit of vehicles by rail, road, air, or inland waterways
  • Terrorism Attacks, Riots and Strikes, or Malicious Damage

Why is Own-Damage Car Insurance Important?

An own damage car insurance coverage is important because it takes care of the losses to your vehicle, which can be extremely expensive, depending on the nature of the damage. Hence, if you have third party car insurance that protects you against third party legal and financial liabilities, it is advisable to also have a standalone car insurance policy for protection against own-damage to your car to avoid paying the repair costs from your own pocket.

With Tata AIG’s standalone own damage insurance policy, you can be compensated for all the damages covered under the policy. Hence, our own damage insurance will cover the cost of damages or even the total loss of your car, without you having to worry about the expenses!

Who Should Buy a Standalone Own Damage Car Insurance?

Tata AIG offers the Standalone Own Damage Insurance to car owners who have purchased their car after September 2018. But if you want to avail of this stand alone car insurance, then you must have the compulsory third-party insurance cover already.

This stand alone insurance policy is meant to help you cover the losses of accidental damage, damage from natural calamities, human disasters, theft (total loss) and vandalism to your car. Therefore, anyone who suffers a loss due to the above damages to their four-wheeler should have stand alone car insurance for own-damage.

It is also advisable to have our own damage car insurance if you are currently covered only by a basic third-party insurance policy as that will not cover any damages caused to your car. Additionally, if you want to protect your car but do not want to opt for a comprehensive car insurance policy for any reason, you can get stand alone car insurance, provided you already have a third-party liability cover.

Inclusions: What is Covered in OD Car Insurance Policy?

Now you know how our own damage car insurance works, but the question you may ask is, does the car insurance cover self-damage of all kinds?

Well, here are all the damages that can be covered by our standalone own damage insurance:

  • Accidents: If your car is damaged due to an accident or collision, our standalone OD car insurance will cover the financial loss incurred by you.

  • Fire & Explosion: In case of damages to your car due to an accidental fire or explosion, you can rest assured that these damages can be taken care of under our own damage car insurance policy.

  • Theft: A total loss or theft of your car can create a lot of tension and financial stress. But if you have our standalone OD car insurance, the loss of your car will be covered.

  • Human calamities like a riot, vandalism, etc*.: Our standalone own damage insurance also protects your car against damages resulting from riots, vandalism, terrorism, etc.

  • Personal Accident: With a personal accident cover of ₹15 lakhs in our own-damage car insurance, any accidental injuries and the resultant medical and hospitalisation expenses are covered under the plan.

Exclusions: What’s Not Covered in Own Damage Car Insurance Policy?

No matter how much protection our own damage insurance has to offer, these are some scenarios you should be aware of as they are not included in the own damage insurance coverage:

  • Third-party Liabilities: The own damage car insurance does not cover third-party losses of any sort and is strictly meant to protect your own car’s damages.

  • Depreciation: Since your car ages and depreciates with time, the own damage car insurance coverage does not have a provision to safeguard the depreciation costs unless you choose a fitting add-on such as our Zero Depreciation cover.

  • Electrical & Mechanical Breakdown– Our own-damage car insurance cannot protect you from losses that arise due to a mechanical fault in the car unless it is caused by accidental damage.

  • Drunk Driving– In case your car is damaged as a result of drunk driving or driving under the influence of intoxicating substances, our own damage insurance will not cover the losses.

  • War or nuclear risks– The own damage insurance coverage does not take care of any losses that are caused due to wars, war-like incidents or nuclear attacks.

  • Driving without a Licence– Our own-damage car insurance cannot cover any losses if your car is damaged when being used without the driver having a valid license.

Compare: Third Party, Own Damage & Comprehensive Car Insurance

Parameters Third-party insurance Own Damage Comprehensive
Definition Third-party insurance only covers damages to a third-party vehicle or property and injuries to/death of a third-party person. Standalone own damage insurance covers the damages only to the insured car. Comprehensive car insurance covers third-party liabilities as well as own damage under a single policy premium.
Insurance Coverage The insurance cover is limited to third-party damages only. The standalone own damage insurance only offers protection to your insured vehicle This insurance coverage is extensive and includes third party as well as own damage protection.
Advantages Being a compulsory cover, third-party insurance protects you from legal traffic fines and from third-party liability costs. An own damage car insurance cover enables protection from natural disasters as well as damage due to human causes. Moreover, you can enhance the coverage with add-on benefits and earn a No Claim Bonus discount too. The comprehensive insurance covers the losses from third-party damages, covers own damage, enables you to enhance the coverage with add-ons and lets you enjoy a No Claim Bonus discount on premiums.
Insurance Premium Amount Since a third-party cover is compulsory but basic, the insurance premium amount is quite affordable. The standalone own damage car insurance premium is high at the start but decreases as the car gets older. The premium for this insurance cover is high as it includes third-party and own damage premiums. However, the own-damage premium decreases with time.
Depreciation Rate The insurance premium is not affected by depreciation. The depreciation rate affects the insurance premiums. The own damage component in comprehensive car insurance is affected by depreciation.

What is Own-Damage Car InsurancePremium?

The own damage premium is the amount you pay for your own damage car insurance cover. The premium for your own-damage car insurance policy can be calculated if you consider three factors:

  • the Insured Declared Value (IDV) of your car
  • the age of the car
  • the city in which you drive the car

You can choose how much premium you pay for your own damage insurance policy, and customise the policy coverage with the help of our 13 unique add-ons.

How is Own-Damage Car Insurance Premium Calculated

To calculate your own damage premium, you can visit our car insurance page and use our car insurance premium calculator. To know your car insurance own-damage premium, you will need to know your car’s Insured Declared Value (IDV), which is the current market value of your car. You can simply calculate the IDV of your four-wheeler with the following formula:

IDV = (vehicle’s showroom price - depreciation cost) + (cost of any car accessories - depreciation cost)

Once you have the IDV of your car, you can use the below formula to calculate the standalone own damage insurance premium:

Own Damage premium = IDV X (Premium Rate) + Add-on covers – Discounts and benefits on the policy

It is important to know the own-damage insurance coverage for your car so that you can give your car adequate insurance protection in the event of any damages caused to the car.

How to Reduce Own Damage Car Insurance Insurance Premium Amount?

You can choose to reduce the standalone own-damage insurance premium of your car while ensuring that protecting it does not have to be a costly affair! These are a few ways to reduce the premiums on your standalone own damage insurance:

  • Increase Voluntary Deductibles: In stand alone damage insurance, paying a voluntary deductible on your insurance at the time of purchase can help you reduce your car insurance premiums. The voluntary deductible is an amount paid by you, and we’ll pay the rest of the amount if and when you file a claim with us.

  • Choose the Correct IDV: Tata AIG enables you to choose a suitable Insured Declared Value for your car so that you can provide the right coverage to your car and also avoid making heavy own-damage premium payments.

  • Make use of the No Claim Bonus: If you have availed of own damage insurance or comprehensive car insurance policy previously, ensure that the No Claim Bonus is transferred to your new policy. That way, you won’t miss out on the discount on your own damage premium!

  • Buy online and save up to 75%: By purchasing a Tata AIG own damage insurance online on our website, you can get up to a 75% discount on your car insurance cost. Such perks and discounts come with buying your policy online and help reduce your own damage insurance premium.

  • Select only necessary add-ons: We offer a range of unique add-ons to go with your insurance cover. However, these add-ons cost an extra premium and therefore, you should choose only relevant and necessary add-ons to keep your own damage car insurance premium low and reasonable.

Factors Affecting Own Damage Car Insurance Premium

Have you wondered why the own damage premium varies from car to car? Well, these are the factors through which standalone own damage insurance can be determined. A change in any of these factors can easily affect your stand alone car insurance premium.

  • Insured Declared Value: The IDV or Insured Declared Value of your car is its current market value and an important factor for determining the own damage premium. Your standalone own damage insurance will be high if you choose a higher IDV for your car.

  • Age of the car: As your car ages, it undergoes depreciation and loses its value. Therefore, the own-damage premium for your car will go down if your car is old.

  • Car Model: If you own an expensive or fancy car, any accidental damage could be extremely expensive. Since the risk of such a car is high, the stand alone insurance policy premium for own damage too will be high.

  • Cubic capacity of the car: The cubic capacity of your car’s engine plays an important role in determining the premiums. For cars whose cubic capacity exceeds 1500cc, the own damage premium will be higher as compared to cars with an engine capacity below 1500cc.

  • No Claim Bonus: If you haven’t filed any claims for damages to your car during the policy year, you will be eligible for a No Claim Bonus discount on your premiums when you renew the policy. Therefore, not filing these claims helps you lower your standalone own damage insurance premiums.

  • Add-ons: You can include add-ons such as Zero Depreciation, Engine Secure, Roadside Assistance, etc., to your stand alone insurance policy and enhance the extent of the coverage. But since these add-ons come at an extra premium, you should choose only the necessary add-ons to keep the own-damage premium in check.

  • Your location: The own damage car insurance premium will increase if you use your car in an urban and crowded setting such as a metropolitan city. This is because there is always a risk of damage to and also the theft of the car. Likewise, in smaller towns and villages, the risk is lower, and so are the premiums.

  • Car Fuel Type: Petrol cars are a common fuel in most passenger cars, and so, their maintenance is easier and less expensive. However, in the case of CNG and diesel cars, the maintenance costs are higher, and so, the own damage car insurance premium too will be higher.

  • Car Safety: If your car has been installed with safety devices, it reduces the risk of any damage. For example, safety features like airbags make your car less vulnerable to damage, thereby reducing the own damage four wheeler insurance premium.

How to File for Standalone Own Damage Insurance Claim?

An accident is an unfortunate incident that becomes all the more troublesome due to the losses and damages it causes. At such times, what you need is a hassle-free claim filing process for standalone own damage insurance. Therefore, here are some convenient steps you can follow on our website if you want to know how to claim car insurance for own damage:

  • Get in touch with us soon if your car suffers accidental damage. Call us on our toll-free number – 1800 266 7780 or write to us at general.claims@tataaig.com

  • You can also visit the “Claims” section on the car insurance page of our website and we will send a link on your mobile number for self-inspection of your car. We will also have a surveyor take a look at the damages to the car and assess the damages. Mention the details of the damages on the online form based on your inspection.

  • In the final step, you can choose between a cashless claim or reimbursement. In the first scenario, your car will be repaired at one of our network garages, and we’ll settle the expenses with them. Or you can have the car repaired at a garage of your choice and receive the reimbursement amount.

Hence, filing an own damage car insurance claim need not add to your woes if you are already dealing with damages to your car.

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Frequently Asked Question

1. What is Own Damage in Car Insurance?

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Own Damage cover or standalone own damage insurance in car insurance is a type of insurance policy that provides protection against various damages to your own insured vehicle and yourself.

2. Is Own Damage Car Insurance Mandatory for Your Car?

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No. A standalone own damage insurance or own damage cover is not mandatory. While it is important for protecting your car and you against financial losses, it is the third-party insurance cover that is a mandatory cover and helps you avoid legal fines.

3. Can You Get Add-ons for Stand-Alone Damage Policy?

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Yes, you can include add-ons to the own-damage cover to enhance the insurance coverage. We, at Tata AIG, offer a set of 12 unique add-on covers like Zero Depreciation, Roadside Assistance, Engine Secure and more, on our standalone own damage insurance for your car.

4. Are standalone own-damage car insurance policies optional?

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Yes, a standalone own damage insurance policy is an optional insurance cover. However, it is necessary to buy an own-damage insurance policy so that your car can be protected at all times against any type of accidental damage, theft, fires or damage arising from natural disasters and human causes – something that the mandatory but basic third-party insurance does not cover.

5. Is own-damage cover a component of basic car insurance?

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The meaning of basic car insurance refers to third-party car insurance. Having at least a basic third-party car insurance cover is a legal mandate as per the Motor Vehicles Act of 1988. However, this basic car insurance does not have an own-damage cover. Instead, you can choose and buy an own-damage insurance policy on our Tata AIG website.

6. What is the policy term of standalone own-damage car insurance policies?

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A standalone own damage car insurance policy is valid for a year and has to be renewed each year. As per a recent directive by the Insurance Regulatory and Development Authority of India (IRDAI), a standalone own damage cover can be issued for a year and then renewed annually. This is applicable in the case of new cars as well as old cars. If you have a Tata AIG standalone own damage cover, you can quickly renew it in a few easy steps by visiting our car insurance page on our website.

7. How is standalone own-damage car insurance premium computed?

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To calculate the own damage car insurance premium, it is necessary to consider the Insured Declared Value (IDV) of the car, the type of vehicle, the purchase year, as well as the geographical area of the car and the policy.

9. Why should I have a standalone own damage car insurance?

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If you only need to protect your own car against financial losses and damages and don’t feel the need for third-party insurance, you can simply opt for Tata AIG’s standalone own damage cover. Our own damage car insurance policy enables you to customise your car insurance policy as per your insurance needs and budget.

Also, after September 01, 2019, having a standalone own damage car insurance means that your third-party liability and the own damage policy are independent of one another, and you can buy them both separately.

10. How do I file an own damage car insurance claim for my car?

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You can file an own damage insurance car insurance claim for your car on our website by following a few simple steps:

  • In case of a mishap or accident in which there is damage caused to your four-wheeler, inform us about the damages immediately. You can send us an email at general.claims@tataaig.com or call us on our toll-free number – 1800 266 7780.

  • To file a claim with us, visit the “Claims” section on our website. We will appoint a surveyor to examine the damages to your car and also send you a self-inspection link on your registered mobile number. You can fill up the online form based on your inspection

  • Lastly, you can choose if you would like to opt for cashless claims and have your car repaired at our network garages or select a garage of your preference and receive reimbursement for the repair costs.

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