The fee you pay for OD insurance is known as an Own Damage Premium. The premium price is normally determined by the type of vehicle you own, its age, and the city in which you use it.
However, regardless of your premium cost, every OD insurance coverage protects you from the following:
How is basic own damage premium calculated?
Third-Party Liability (TPL) insurance covers any harm to a person or property caused by your insured vehicle, resulting in financial loss or death to the person.
TPL, on the other hand, does not cover expenses for repairs, so it’s always a good idea to have a coverage that also covers losses caused by damage to your own car.
The Insurance Regulatory Authority of India issues the TPL premium, which is based on the car’s capacity (IRDAI).
The OD cover is optional, although it is really useful. It reimburses your expenses if your car is damaged by natural disasters such as earthquakes, fires, or storms, or if it is involved in an accident. The arrangement is that as the Insurance Declared Value, or IDV, increases, so does the premium, and vice versa. As a result, as your car ages, the IDV falls.
The Indian Motor Tariff determines the premium for OD coverage as a proportion of IDV.
IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV = IDV (IRDAI)
This portion of your automobile insurance premium protects you not only against accidents, but also from incidents that result in incapacity. Because the possibilities of handicap are higher than virtually any other consequence, this is an essential aspect of being thoroughly protected. Road accidents claimed the lives of approximately 3 lakh people in 2014. However, 5 lakh people were gravely hurt or incapacitated for the rest of their lives. You can also enhance the policy’s coverage to include nameless passengers.
Finally, there are riders. These riders, often known as auto insurance add-ons, offer a variety of protection and services for a small fee. Engine Secure, for example, protects against waterlogging damage, while Road Side Assistance provides assistance if your car breaks down in the middle of the road, and NCB Protection allows you to make two claims without losing your No Claim Bonus. Each rider adds to the strength of your auto insurance policy, ensuring that you are covered in any eventuality.
What is basic own damage insurance?
Own Damage (OD) protects you against damage to your car caused by events such as fire, theft, and vandalism. In the event of an accident, an own damage policy reimburses you for the cost of repairing or replacing pieces of your automobile that were damaged in the collision.
Is own damage insurance same as comprehensive?
While Comprehensive insurance is more expensive than a typical Third Party Liability or Own Damage policy, it does provide you with more advantages and coverage, making it more cost-effective over time.
What is period of own damage?
In the event of an accident, an own damage policy reimburses you for the cost of repairing or replacing pieces of your automobile that were damaged in the collision. This coverage pays for damages to your car caused by: 1. Natural disasters such as floods, earthquakes, fires, and other similar events.
What is period of own damage cover?
Beginning September 1, 2018, people purchasing new automobiles had the option of purchasing a three-year bundled third-party cover and a one-year own damage cover for autos.
Is it mandatory to take own damage insurance?
Third-party liabilities, such as bodily injury, death, and property damage, are covered by this sort of insurance. According to the Motor Vehicles Act of 1988, it is required.
This sort of insurance covers the policyholder’s car in the event of damage. It is not required, but it gives more protection than third-party liability insurance.
Under a single premium, this sort of coverage covers both third-party liability and own-damage expenditures.
It is required, and failing to do so might result in hefty fines. Furthermore, you will not be responsible for any costs if you have an accident.
It covers a variety of costs associated with personal property damage, including natural disasters, vandalism, accidents, total damage, and theft. Add-on covers are available for purchase and will earn you NCB.
Both third-party and personal liability You’ll also be eligible for NCb on the own-damage cover, as well as the ability to buy add-on covers.
Both covers are included in a single premium with Higher Premium. The cost of own-damage insurance lowers over time.
Can I claim insurance if I damage my own car?
- Call your insurance carrier as soon as possible after the accident to report the damage.
- Make a claim with your insurance company and request that a surveyor be assigned to assess the damage.
- If your insurer allows it, you can also submit your claim online.
Documents required to make a claim:
The insurance provider may need certain documentation from you in order to validate and approve your claim. You must submit all required papers for the claim as well as complete the claim form. The following is a list of papers that you must present when filing an automobile insurance claim:
Formalities for making a car insurance claim
In the event of an automobile accident, the policyholder has two options for filing a claim: third-party and own damage. After an accident, follow these steps to file a claim:
- Third-party claim: In cases where a third-party vehicle has caused damage or harm to you or your vehicle, you can file a third-party claim against the other vehicle owner. If you are unable to work as a result of the accident, you may be eligible to recover medical expenses as well as compensation for personal injury, property damage, and loss of earnings. If there is a death, compensation can also be requested.
In the case that your car collides with another vehicle and causes damage to a third-party vehicle, on the other hand, your insurance will cover the damages, loss, injuries, and deaths that you caused to the other party.
- Obtain the insurance information for the vehicle that caused the damage to your car and notify that vehicle’s insurer of the occurrence.
- Immediately notify your insurance carrier of the situation. Make sure you notify your insurer about the accident within the time limit.
- Then, with your insurer’s help, file a third-party claim. If you’ve been injured, you’ll need to file a third-party claim against the vehicle’s owner. In the event that your vehicle causes injury, death, or property damage to a third party, you must file a claim with your insurance provider.
- Call the police and register a First Information Report by contacting the police helpline number (FIR). In the FIR, make sure to include the following information:
- After that, you must make a claim with the Motor Accident Claims Tribunal in the region where the accident occurred, or with the tribunal in the area where you (the claimant) and the third-party (the defendant) both live or conduct business.
- Own damage claim: If your insured car is damaged or lost as a result of an accident, you can make an own damage claim. The medical bills and repair costs incurred as a result of the accident will be covered by your insurer. You will, however, need to verify the extent of the harm or loss caused by the accident. Only if you have a comprehensive insurance will you be entitled for this claim.
Points to remember:
- Make a thorough examination of yourself and your vehicle to see if any significant injuries have occurred. You’ll have to determine whether or not to seek medical care based on the severity of the damage.
- Make your claim within the time window set by your insurance carrier, which is usually 24 hours.
- In the event of a delay, the claim may be rejected.
- Take down the license plate number, model, and color of the other vehicle involved in the collision.
- Speak with any witnesses who were present at the time of the accident and take down their names and contact information.
- You might need to contact them again in the future to figure out who caused the mishap.
- You can avoid filing a claim if you discover that the damage is limited to the car and is minor. Make a thorough assessment of the issue and make an immediate call.
- Avoid getting into a dispute with the third party, since this will only add to the confusion.
- If you’re not sure what you’re going to do next, don’t say anything to the cops or the insurance company.
- Only move the car from the accident scene for repairs or other purposes if the police and insurance company agree.
- You must submit all required papers for the claim and complete the claim form. An inspection of the vehicle may also be required.
- If your automobile insurance policy includes a cashless claim option, drive your vehicle to a network garage for repairs and take use of the cashless service to avoid paying for insured damages out of pocket. The insurer will cover the cost of the workshop.
What does TP mean in insurance?
You can choose between own damage, third party liability, zero dep, and comprehensive insurance. What do you think the common factor is here? Of course, there’s the issue of financial security. For those who own a vehicle in India, financial help is critical. And it is something that comes with purchasing a car insurance coverage. Within the Indian Territory, an insurance policy for your two-wheeler or car is required by the Motor Vehicles Act 1988. You won’t be able to drive your automobile on the road unless you have insurance. Instead, you will face consequences if you violate the rules. As a result, having vehicle insurance is critical. In some situations, car buyers will take insurance coverage given directly by the dealer. Customers are less likely to inquire about insurance coverage, its application, or the source of the copy. Self-awareness is essential in this situation to understand what’s going on and why. It is not necessary to purchase insurance from a dealer. Look for better insurance firms that offer a variety of coverages and offers in addition to insurance services. Shriram General Insurance is one among them.
What is the Own Damage insurance cover?
Own Damage is a type of insurance that protects you from losses and damages to your own car, such as fire, theft, and so on. You can use the own damage cover to pay the costs of repairs and replacements. Natural disasters, man-made disasters, accidents, theft, and malicious acts are all covered by the OD policy. There are insurance firms that provide coverage for your vehicle’s own damage. Own damage cover can be purchased separately (from September 1, 2019) or as part of a comprehensive insurance. The depreciation of a vehicle’s worth takes into account fluctuations in the insurance price.
What is Third Party Liability insurance cover?
Third-party liability insurance is required to keep your car safe and secure. Under the Motor Vehicle Act of 1988, it is mandatory to purchase third-party liability insurance. This coverage protects you from loss and damage to a third-party vehicle or property that results in someone’s death or injury as a result of your car. You must cope with the situation in this circumstances. It will be simpler if you already have third-party liability insurance. And if you don’t, you’ll have to pay for the loss out of your own money. One thing to keep in mind about third-party coverage is that it does not cover loss or damage to your own car, even if you are at fault for third-party vehicle damage. You must purchase own damage insurance in order to be compensated for your own vehicle. Also, does not process claims for vehicles that have been stolen or vandalized.
What is Zero Depreciation insurance cover?
Depreciation is the process of a vehicle’s or any other asset’s value degrading after it leaves the showroom. Vehicles are depreciating assets that depreciate automatically over time. For example, the current worth of a vehicle will not be the same after one year or more because the value of the vehicle has depreciated. The value differs, just as an old car is less expensive than a new one. The degradation of every portion of a vehicle, such as glass and plastic, is included in its depreciation. As a result, when filing a claim, the insurance will only pay after deducting the depreciated value from the current value.
Depreciation insurance is one of the add-ons offered by various insurance firms in accordance with their terms and conditions. To receive the highest degree of reimbursement during the time of a claim, one should purchase depreciation insurance coupled with a car insurance policy.
What is a Comprehensive insurance cover?
A comprehensive vehicle insurance policy provides total protection against loss and damage to your vehicle (own damage) as well as other vehicles and properties (third party liability) (TP). Because it covers both own damage and third-party liability, comprehensive insurance is the most recommended insurance coverage. Despite the fact that it will cost you a bit more, it is still worthwhile to purchase. It provides financial aid in the event of damage caused by fire, theft, vandalism, animal attacks, fallen objects, or rioting. If you’re thinking about getting insurance, go for the comprehensive plan and rest easy knowing that you’ll be entirely protected.
Finally, perhaps you have gained as much knowledge as possible regarding the many types of motor insurance policies that insurance companies provide. Get the best insurance coverage and safeguard yourself against unforeseeable events.
What is the difference between own damage and zero DEP?
There are certain disadvantages to getting older. The same is true for your car. The worth of your automobile or bike decreases as it gets older, or ‘depreciates.’ But don’t worry; this ‘Add on’ ensures that your vehicle’s worth remains as high as the day you bought it!
Zero Depreciation, often called as Nil Depreciation or Bumper to Bumper coverage, is a type of coverage that excludes the ‘depreciation’ aspect.
It essentially implies that if your automobile or motorcycle is damaged in an accident, no depreciation is deducted from the coverage of wear and tear on any of your vehicle’s body elements.
The insurance company will cover the entire cost of the bodily component that has to be fixed or replaced (less the deductibles, of course).
As we can see, we can’t truly compare comprehensive insurance to zero depreciation because the latter is merely an optional add-on that may be added to comprehensive coverage, whilst the former contains everything you need to safeguard your car.
With Zero Depreciation, you can rest assured that your favourite vehicle will always be as good as new!