When you buy a car, your priority is to protect it, both legally and financially. While a third-party policy is mandatory under the Motor Vehicles Act, it does not cover damages to your own vehicle.
That’s where a standalone own damage policy comes in. This type of cover ensures your car is financially protected against unexpected events like accidents, theft, or natural disasters.
What is a Standalone Own Damage Policy?
A standalone own damage policy (OD policy) is a type of car insurance that covers damage to your own vehicle due to accidents, fire, theft, vandalism, and natural or man-made disasters.
Unlike a comprehensive plan, which bundles third-party and own damage coverage together, a standalone OD policy focuses solely on your car’s damages. You can pair it with a third-party policy from the same or another insurer, offering more flexibility in choosing your coverage.
This option became popular after the IRDAI allowed vehicle owners to buy third-party and own-damage covers separately. It gives car owners greater control over their policy and pricing, especially when they are satisfied with their existing third-party insurer but want better protection for their vehicle.
What are the Benefits of a Standalone Own Damage Policy?
Covers a Wide Range of Damages
It protects your car from accidental damage, natural disasters like floods or cyclones, fire, explosions and even vandalism. This ensures that you are not left paying large repair bills out of pocket.
Protection Against Theft and Total Loss
If your car is stolen or completely damaged beyond repair, the insurer compensates you based on the car’s Insured Declared Value (IDV).
Freedom to Choose Your Insurer
You don’t have to stick with one company for both third-party and own-damage covers. You can select the insurer that offers the best terms and service for your OD policy.
Customisation with Add-Ons
You can enhance your policy with add-ons such as zero depreciation, roadside assistance, or engine protection to strengthen your coverage.
No Claim Bonus Advantage
When you avoid claims during the policy term, you earn a discount on your own damage premium at renewal. This reward grows each year, helping you save more over time.
Who Should Buy a Standalone OD Policy?
A standalone OD policy is ideal for car owners who already have a long-term third-party policy but want to enhance their protection. It is especially beneficial for those who drive frequently, park in busy areas or own newer vehicles where repair costs can be high.
It is also a smart option if your third-party policy is valid for multiple years. You can renew your own damage policy annually without disturbing the existing cover.
How to Buy or Renew a Standalone OD Policy?
Buying this type of car insurance is simple and convenient. Most insurers allow you to compare and purchase policies online in a few minutes. You will need basic vehicle details, policy number for existing third-party cover and identification documents.
Once purchased, your insurer provides an e-policy immediately, ensuring uninterrupted protection for your vehicle.
Conclusion
A standalone own damage policy ensures your car stays protected against the risks that third-party insurance does not cover. Trusted insurers like TATA AIG offer easy online purchase options, flexible add-ons and quick claim settlements. It is a smart choice for anyone who values complete, customisable protection.