All You Need To Know About Standalone OD Car Insurance

All You Need To Know About Standalone OD Car Insurance

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.

What is a Stand-alone Own Damage Policy?

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.

Damages Covered by Standalone OD Car Insurance Cover

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:

  • Accidental damages: Any sudden, external and unforeseen or accidental event or impact that can cause injury or harm to the car is deemed as accidental damage.
  • Burglary & Theft: In case the car is destroyed as a result of a break-in or the damage done to the car is due to a burglary attempt, the damage will be covered by standalone OD car insurance.
  • Total Loss: It refers to the complete loss of a car due to far-reaching and immutable damage or theft of the car. The own-damage car insurance covers the total loss of a car and compensates for this sort of damage.
  • Fire & 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: At times a car may face damages due to flood water, hailstorms, cyclones, and other natural calamities. Moreover, if the car suffers damage due to rocks and debris from earthquakes, landslides or rockslides, etc. At such junctures, the OD cover will protect the insured from all losses.
  • Transit of vehicles: If a car receives dents and scratches due to commotion during its transportation by road, rail, air or waterways, etc. the OD policy coverage protects the car.
  • Malicious Damage: The OD car insurance cover also comes into play if an insured car suffers losses occurring from human causes such as riots, terror attacks, vandalism, etc.

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.

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