The concept of Own Damage (OD) is not new. For those of us who are not well versed with Own Damage, it refers to the damages caused to your car due to unforeseen incidents such as theft, fires, accidents, etc. However, this policy differs from comprehensive insurance.
Damages covered by Standalone OD Car Insurance Cover
The intent of the Own damage or Stand-alone OD car insurance policy is to help the policyholder cover losses suffered by their car. Damages covered by this type of policy are as follows:
- Accidental damage: Accidental damage is any sudden, external, unexpected or accidental event or impact that can cause injury or harm to the car
- Burglary and theft: If the car is destroyed as a result of break-in or the damage done to the car is due to a burglary attempt, the damage will be covered by separate OD car insurance.
- Total loss: refers to the complete loss of the vehicle due to severe and irreversible damage or theft. Damage insurance covers the total loss of the vehicle and compensates for this type of damage.
- Fires and explosions: Fires caused due to an accident or explosions that lead to damage of a car as a result of these fires are covered under the own-damage insurance policy.
- Natural calamities: Sometimes the car may be damaged due to floods, hailstorms, cyclones, and other natural calamities. Likewise, if the car is damaged by rocks and debris from earthquakes, landslides, rockslides, etc. At such junctures, OD cover will protect the insured from all losses.
- Transit of vehicles: If a car receives dents and scratches due to impact during transportation by road, rail, air, river, etc. OD policy coverage protects the vehicle.
- Malicious Damage: OD car insurance cover also comes into play if an insured car suffers losses occurring from human causes such as riots, terrorist attacks, vandalism, etc.
Who Can Get Standalone OD Car Insurance?
As per the Insurance Regulatory and Development Authority of India (IRDAI) directive, standalone car insurance has been available as a separate cover since September 1, 2019. The directive allows car owners who have purchased your car insurance after September 1. 2018, to get standalone personal car insurance for Own-damage, while basic third-party insurance for 3 years remains mandatory.
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