Own damage cover pays for damage to your own vehicle from accident, fire, theft. Learn how it works, what it skips and how to claim. Get a quote today.
Own damage cover is the part of your vehicle insurance that pays for damage to your own vehicle. It covers things like accident, fire, theft, natural calamities and man-made events like riot, as per policy terms. A third-party policy does not include it.
Let us understand how it works in simple words.
What is own damage cover?
Every vehicle policy has a legal part and an optional part. The legal part is third-party cover. It pays for injury, death or property damage to other people. It does not pay for your own vehicle.
Own damage (OD) cover protects your vehicle. A comprehensive policy is third-party cover plus own damage cover, and you can also add optional add-ons. Read more on our comprehensive insurance page.
What does own damage cover include?
As per policy terms, own damage usually covers damage or loss to your vehicle from:
- Accident: a crash, collision or fall.
- Fire: including explosion or self-ignition, as per terms.
- Theft: if your vehicle is stolen.
- Natural calamities: like flood and earthquake.
- Man-made events: like riot.
The exact list can differ by insurer. Always read your policy wording.
What does it not cover?
Own damage cover does not pay for everything. Claims can be rejected or reduced for reasons such as:
- Expired policy.
- Drunk driving.
- Driving without a valid licence.
- Using a private vehicle commercially.
- Late intimation to the insurer.
- Wrong or hidden facts.
- Wear and tear.
- Mechanical breakdown.
- Engine damage after an accident when the engine was started in a flooded area. Engine damage due to water ingress usually needs the engine-protection add-on.
Knowing these limits helps you avoid a shock at claim time.
IDV: the most you can get
IDV (Insured Declared Value) is your vehicle's current market value as agreed with the insurer. It is roughly the maker's listed price minus depreciation for the vehicle's age.
IDV is the maximum amount paid for total loss or theft. If your IDV is too low, you will get less. Our post on IDV in car insurance explains how it is worked out.
How add-ons improve own damage cover
Add-ons are extra covers that you buy with your comprehensive policy. Terms differ by insurer.
- Zero depreciation: the insurer does not cut depreciation on replaced parts like plastic, rubber, glass and metal. It is usually for newer vehicles, often up to around 5 years old, and the number of claims per year is usually limited.
- Engine protection: helps with engine damage from water ingress.
- Return to invoice: may help in theft or total loss.
- Roadside assistance
- Consumables cover
- Key and lock replacement
- NCB protection
- Daily allowance
- Tyre protection
- Battery or EV battery cover
Pick only what suits your vehicle. See our zero depreciation cover page for one popular option.
Deductibles: what you pay in a claim
A compulsory deductible is part of every claim that you pay yourself. A voluntary deductible is an extra amount you choose to pay, which can lower your premium. Keep it at a level you can manage, because you will pay it at claim time. Read our post on deductible and voluntary excess for more.
How to make an own damage claim
The steps are usually these.
- Inform the insurer quickly.
- Inform the police for theft, major accident, third-party injury or death, and riot.
- Do not move or repair the vehicle beyond need before the survey.
- The surveyor checks the damage.
- Submit your documents.
- Get the repair done.
- The claim is settled.
Documents usually needed are the RC copy, driving licence, previous policy copy, ID and address proof, claim form, FIR when needed, repair estimate and bills, and photos of damage.
For theft, file an FIR and inform the insurer. A "non-traceable" report from the police is usually needed before final settlement.
In a cashless claim, you repair at a network garage and the insurer pays the garage. You pay for non-covered items and deductibles. In reimbursement, you pay first and claim back with bills. Our claim support page can guide you.
NCB and own damage
No Claim Bonus (NCB) is a discount on the own-damage premium for claim-free years. Usual slabs are 20% after 1 year, 25% after 2, 35% after 3, 45% after 4, and 50% after 5 or more claim-free years. It does not apply to the third-party part. If you make a claim in a year, you lose the NCB for that year. So for a very small repair, think about whether to claim or pay yourself. Read more on no claim bonus.
Do you need own damage cover?
If your vehicle is new or costly, or you depend on it every day, own damage cover is usually a good idea. If your vehicle is very old and has low value, you may decide differently. The choice is yours. Third-party cover alone leaves your own vehicle unprotected.
To check options, get a quote.
Rules and terms can change and differ by insurer. Your policy document is final.
FAQs
Is own damage cover compulsory?
No. Third-party cover is compulsory. Own damage is optional, but it is part of a comprehensive policy.
Can I buy only own damage cover?
Some insurers offer a standalone own damage policy if you already have valid third-party cover. Check with the insurer.
Does own damage cover pay for natural calamities?
Usually yes, for events like flood and earthquake, as per policy terms. Engine damage from water may need an add-on.
Does it cover the other person's vehicle?
No. Damage to another person's property comes under third-party cover.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.