Buying a car in India is a big step for people as it solves several problems and makes life more convenient.
However, for driving on Indian roads, you need to have at least valid third-party insurance. A third-party insurance
policy helps the policyholder in paying for any damages towards a third party. Having third-party insurance was made
compulsory keeping in mind the losses suffered by third parties in accidents caused by vehicle owners. For extensive
protection, people often choose comprehensive car insurance that covers damages arising from their own damages as
well as third-party damages.
In Car Insurance, Own Damage or OD refers to the damages suffered by the insured vehicle of the policyholder. These
damages are suffered due to the fault or actions of the car’s owner and no third parties are involved in it.
Basically, the OD section in insurance represents a clause that dictates the protection of the insured vehicle. It
includes the cost of repair for the car in the event of an accident or any unfortunate event. These kinds of
policies are also called Stand-alone Own Damage(OD) policies.
Let us understand this with an example. Let’s say if you hit your brother’s car while pulling out of a parking
space and both cars bear damages, a third party insurance policy will only cover the repair cost of your brother’s
car. It implies that while third-party insurance will take care of your obligation to repair your brother’s car, the
cost of your car’s repair has to be paid by you. However, if you have an Own-damage policy, the cost of your
car’s repair would also be covered by your insurer.
The intent of the Own damage or Stand-alone OD car insurance policy is to help policyholders cover losses suffered
by their car. Here is a list of the kind of damages covered by this type of policy:
As per a directive of the Insurance Regulatory and Development Authority of India (IRDAI), the standalone OD car
insurance has been available as a separate cover since September 01, 2019. The directive allows car owners who have
purchased their car insurance post-September 01, 2018, to get standalone car insurance for Own-damage, while the
basic 3-year third-party insurance remains mandatory.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.