Own Damage is an insurance cover that protects you against the loss and damage that occurred to your own vehicle like fire, theft, etc. … OD policy compensates for damages like natural calamities, man-made calamities, due to accidents, theft or malicious acts.
What is OD cover and liability cover?
Sajja Praveen Chowdary, Head- Motor Insurance, Policybazaar.com says that the own damage component covers any damage caused to your vehicle occurring due to an accident or due to any natural calamity whereas the third-party cover covers liability for injuries and damages to others for which you are responsible.
What is covered under own damage?
Own-damages: Coverage against loss of or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities.
Is OD insurance compulsory?
No, an OD insurance for your car or bike isn’t mandatory but is recommended for protection for your own vehicle. As per the Motor Vehicle Act, the basic Third-Party Insurance is mandatory for all vehicles.
How is insurance OD calculated?
The premium for OD cover is calculated as a percentage of IDV as decided by the Indian Motor Tariff. Thus, formula to calculate OD premium amount is: Own Damage premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (eg. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)]
Can I claim insurance if I damage my own car?
If you are the victim, you need to make the application for a third-party claim against the vehicle owner. In an instance where injury, death, or property damage has been made by your vehicle to a third-party, the application has to be made with your insurance company.
Is engine damage covered by insurance?
Hence, you can claim for engine repair on insurance if the damage is caused by an accident or comprehensive loss covered by the insurance. However, any engine damage caused by wear and tear or mechanical failure will not be covered as part of an insurance claim.
What is not covered in car insurance?
Your Car Insurance Doesn’t Cover Damages Caused Due To Natural Calamities. Although your car insurance covers collisions and accidents, if any damage occurs to your car due to a natural calamity, like an earthquake, tornedo or damage from floods, you will not be eligible to receive any compensation for it.
What is difference between od and TP insurance?
While the OD part provides coverage for any damage caused to the insured vehicle, the TP part covers the policyholder’s legal liability arising due to damages inflicted to a third party individual or property due to his/her negligence driving.
Is it necessary to renew OD insurance?
Own damage car insurance also covers man-made disasters such as vandalism, riots and terror attacks along with providing coverage for external accidents. So, make sure that you renew your own damage insurance without fail to avoid bearing unnecessarily high costs for minor or major damage caused to your vehicle.
How do I claim my own damage insurance?
How to Claim Car Insurance for Own-Damage?
- Inform Your Insurer. You must inform your insurance company about the accident as soon as it occurs. …
- File an FIR. File the First Information Report (FIR) at your nearest police station as soon as possible. …
- Evaluate the Status of Damage. …
- Claim Settlement.
What is OD discount?
No Claim Bonus is discount provided on the own damage premium to the owner if he does not claim for any damage the whole year. This discount ranges from 20% to 50% depending on the consecutive years you haven’t claimed for. Hence it is advised not to claim for very low costing damages. Discount on OD premium.
What is OD banking?
An overdraft (OD) is a short-term standby credit facility. You can use it to withdraw money from your current account up to the OD limit. Check with your bank on the fees and charges for using an overdraft, such as interest charges.
Who pays an insurance premium?
When you sign up for an insurance policy, your insurer will charge you a premium. This is the amount you pay for the policy. Policyholders may choose from a number of options for paying their insurance premiums.