Is own damage car insurance mandatory in India? This is a common question among car owners in the country. Car insurance is crucial in India as it provides financial protection in the event of an accident or damage to the vehicle. There are two types of car insurance policies available in India- third-party insurance and comprehensive insurance.
While third-party insurance is mandatory under the Motor Vehicles Act, 1988, comprehensive or Standalone own-damage car insurance is optional. However, there are certain conditions under which own damage car insurance becomes mandatory. In this article, we will explore whether or not own damage car insurance is mandatory in India and the benefits of opting for this policy.
What is own damage car insurance?
Own damage car insurance is a type of car insurance policy that covers the insured vehicle owner against damages caused for your car in case of damages, theft, accidents, and other events. In simple terms, it covers the damages caused to the car due to any unforeseen circumstances other than third-party damages.
Own damage car insurance provides financial protection to the car owner against damages caused due to accidents, natural calamities, theft, and other unforeseen events, helping car owners save money on car insurance.
What is the difference between Comprehensive and Own damage car insurance?
When you purchase Comprehensive insurance for your car, you are getting the benefits of third-party and own damage (OD) coverages, which can give you peace of mind about all types of liabilities. OD insurance only covers damages, loss, and theft of the insured vehicle, while Comprehensive insurance covers both third-party liabilities and damages to your own vehicle. This is the primary difference between the two types of insurance policies. With a Comprehensive plan, you can protect your car from various risks while ensuring that third-party liabilities are also covered.
Is own damage car insurance mandatory in India?
No, own damage car insurance is not mandatory in India. However, it is advised to get one as it will insure your car against accidental damages, burglary, theft, etc.
Chola MS Car Insurance offers Standalone Own Damage Insurance for car owners. To avail of this standalone car insurance policy, it is mandatory to have a compulsory third-party insurance cover. This insurance policy is designed to cover losses incurred due to accidental damage, natural calamities, human disasters, theft (total loss), and vandalism to your car. Therefore, anyone who experiences such damage to their car should consider purchasing a standalone car insurance policy for own damage.
Benefits of own damage car insurance:
There are several benefits of opting for own damage car insurance, and they are as follows:
Financial protection:
Own damage car insurance provides financial protection to the car owner against damages caused due to accidents, natural calamities, theft, and other unforeseen events.
Add-on covers:
Car owners can opt for various add-on covers, such as engine protector, zero depreciation cover, roadside assistance, and more, to enhance the coverage of the policy.
Peace of mind:
Opting for own damage car insurance provides peace of mind to the car owner, as they know that their car is protected against damages caused by unforeseen events.
Inclusions and exclusions
are essential aspects of any insurance policy, and own damage car insurance is no exception. The inclusions of an own damage car insurance policy depend on the specific terms and conditions of the policy. Typically, such policies cover damages caused by natural disasters like floods, earthquakes, and landslides, as well as man-made disasters like riots, strikes, and theft. Additionally, damages caused by accidents or collisions, including those involving a third party, are also covered under own damage car insurance.
However, it is important to note that there are certain exclusions under this policy. The most significant exclusion is damages caused due to the driver being under the influence of drugs or alcohol at the time of the accident. Moreover, damages caused by driving the vehicle without a valid driving licence, regular wear and tear of the vehicle, and mechanical or electrical breakdowns are not covered by own damage car insurance. Any damages or losses that are caused by intentional acts or illegal activities are also excluded from the policy coverage. Therefore, it is crucial to read the policy documents carefully and understand the inclusions and exclusions before purchasing the own damage car insurance policy.
The own damage car insurance premium varies based on several factors, which can significantly impact the cost of the policy. The Insured Declared Value (IDV) of the car is an important factor, as is the car’s age, model, cubic capacity, location, and safety features. A higher IDV and owning an expensive or fancy car can result in a higher premium. On the other hand, if the car is old, has safety features like airbags, or you have not filed any claims for damages, the own damage premium can be lower. Additionally, add-ons like Zero Depreciation or Roadside Assistance can enhance the coverage but come at an extra cost. The type of fuel also plays a role, with diesel and CNG cars having higher maintenance costs and own damage premiums.
How to claim own damage car insurance with Chola MS Car Insurance policy?
If you’re a policyholder with Chola MS insurance and need to file a claim for standalone own damage insurance, there are a few simple steps to follow.
- Inform your representative of the claim and provide them with the policy number and details of the incident, including the time and date of the accident, location, and nature of the damage.
- Next, take photographs of the damage and gather any relevant documents, such as the police report or insurance policy. Submit the documents along with the claim form, duly filled out and signed.
- We will then initiate the claim process and appoint a surveyor to assess the damage. Once the surveyor has evaluated the claim, we will inform you of the amount of the claim settlement. You can then choose to either accept the settlement or request further clarification.
Overall, filing a claim for own damage insurance with Chola MS Car Insurance is a straightforward process that can help policyholders get the necessary support in case of an accident or damage to their vehicle.
In conclusion, own damage car insurance is not mandatory in India, but it is essential for car owners who want to protect their vehicle against damages caused by accidents, natural calamities, theft, and other unforeseen events. While it may not be mandatory, it is always advisable to opt for a comprehensive or own damage insurance policy that covers the own damage of the car.
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