What is a Standalone OD Policy, and Why Should You Opt for It?
In India, the Motor Vehicles Act, 1988, mandates that all car owners have Third-Party Insurance. However, third-party insurance only covers liabilities for other people or property damages. Previously, car owners had to purchase comprehensive insurance, first-party insurance to cover damages to their own vehicle. To address this, the Government of India introduced new rules allowing individuals with third-party insurance to protect against damages to their own vehicle through Standalone Own Damage Insurance. Let’s delve into this further.
What Does Standalone Own Damage Insurance Mean?
In September 2019, the Insurance Regulatory and Development Authority of India (IRDAI) announced that vehicles purchased after September 2018 qualify for Own Damage Car Insurance. This insurance protects the first party against damages to their vehicle. Instead of waiting for the renewal date of a policy, car owners can directly purchase Own Damage Car Insurance. This eliminates the need for comprehensive car insurance, which requires regular renewals.
Who Is Eligible to buy This Insurance?
- If someone has third-party insurance, they can buy a Standalone Own Damage policy to cover damages to their vehicle.
- Car owners who bought their vehicles after September 1, 2018, and hold a three-year third-party insurance policy are eligible to purchase this coverage.
- You no longer need to purchase Own Damage Insurance and third-party insurance from the same provider. You can now buy this policy separately from any insurer offering it.
What Is Covered Under a Standalone OD Policy?
- Damages to the car caused by natural calamities such as floods, earthquakes, tsunamis, and more.
- It covers damages caused by man-made disasters like terrorist attacks, riots, vandalism, and more.
- It covers damages to the car or its contents in the event of an accident.
- It covers theft or acts of vandalism.
- It covers damage to the vehicle caused by fire or explosion.
What is not Covered by a Standalone OD Policy?
- The policy does not cover the depreciation in the car’s value.
- The policy does not cover electrical or mechanical breakdowns.
- This policy does not cover damages caused by war, invasion, or rebellion.
- A person driving under the influence of drugs or alcohol is not eligible for insurance benefits.
- The policy does not cover damages resulting from negligence, such as forgetting to lock the vehicle.
- If an incident occurs and the policy has not been renewed, the insurance will be invalid.
- This policy will not cover damages caused intentionally or deliberately.
- The policy will not cover damages caused to the vehicle by someone without a valid driving licence.
What Makes This Policy a Good Choice?
- It protects your vehicle from damages at affordable premiums.
- You can choose and customize the Insured Declared Value (IDV) to fit your needs.
- You can file as many claims as needed until the IDV is exhausted.
- You can access cashless garages that are partnered with the insurance company.
This policy is ideal for car owners concerned about their vehicle’s safety. Numerous similar policies are available in the insurance market, so it’s important to research thoroughly before making a choice. Click here to learn more about Motor Insurance policies!
Additionally, you can access cashless garages partnered with the insurance company.