Two-Wheeler Insurance Own Damage Policy
No matter what kind of two-wheeler you have, it requires to be covered with a two-wheeler insurance policy. All this time there have been 2 main types of two-wheeler insurance: Third-Party Insurance and Comprehensive Insurance. However, in order to adapt to the changing insurance needs of people innovations are regularly being done by the IRDAI. From 1 September 2019, Own-Damage two-wheeler insurance has also been made available as a standalone yearly policy along with the third-party liability insurance plan.
What is Own Damage two-wheeler Insurance?
You may incur in case your bike gets damaged in an accident. This example would help in understanding this policy better:
Suppose, you have recently bought a new motorcycle and have purchased third-party liability insurance with it, for a policy term of 5 years. However, one year later you realise that protecting your bike is also important. But to upgrade your policy to a comprehensive policy, you would have to wait till the time of renewal of the third-party insurance. This is when you can purchase a standalone Own-Damage two-wheeler insurance and easily cover your bike.
The Modifications that were done by the IRDAI
- Own Damage Insurance is being offered as a standalone yearly policy, since 1 September 2019
- Bundling up third-party and own-damage is no longer compulsory
- If you wish the insurer company for third-party and own-damage can be different
- Own-damage will have an annual renewal
The Effect of these Modifications
- Purchasing own-damage cover is optional for a bike-owner
- Add-on covers will be available with OD cover
- This will lead to competition among companies and the customer will benefit better pricing
- Details of third-party insurance will be mentioned in the OD policy
Importance of Own Damage Two-Wheeler Insurance Policy
There are multiple benefits of an Own Damage two-wheeler insurance policy, let us take a look at them:
1. Cover your own vehicle
When you buy a third-party only insurance policy for your two-wheeler, you are able to cover only the liabilities that may occur due to the damage caused to a third-party. However, an own-damage coverage bike insurance plan would help you cover the damage to your own two-wheeler, saving you from a financial burden.
So, an own-damage insurance plan would help you keep your own bike protected from any financial loss due to an accident.
2. Save on your Premiums
An own-damage policy will surely cost you a little more than a third-party policy. However, you can purchase this plan provided you already bought a third-party only plan and not otherwise. Own-Damage Only Two-wheeler Insurance Plan is also cheaper than a comprehensive plan as there is no component of third-party insurance in that plan. So, you can thus save on your premium by opting for an Own-Damage Only Two-wheeler Insurance Plan for your bike.
3. Cashless Claims
When you have an own-damage cover, you can get your bike repaired at a network garage and make a cashless claim for any accidental claim.
4. Customise with Add-On covers
With an own-damage policy, you can increase the cover of your policy manifold with additional benefits or add-ons. An Own Damage motor insurance policy can be customised according to the requirement with add-ons available.
Who Should Opt for Own Damage Two-Wheeler Insurance?
Own Damage two-wheeler policy would be suitable in the following situations:
- When you have third-party two-wheeler insurance already, you can buy Own Damage insurance as it would cover your bike against your own damages
- When you have an old two-wheeler, instead of investing in a comprehensive plan you can get third-party insurance along with Own Damage
- When you have third-party two-wheeler insurance from one insurance company but want to buy your own damage cover from some other company
- Someone who lives in an accidental-prone area and is a frequent driver should also opt for own-damage two wheeler insurance
What is Covered in Own Damage Two-Wheeler Insurance?
1. Damages to your two-wheeler:
The damages that your two-wheeler suffers after an accident are covered by the own damage cover.
2. Natural Disasters:
When calamities such as floods, earthquakes, cyclones, landslides, hail storms etc cause damage to your two-wheeler.
Theft can cause immense financial loss. Own damage will cover your loss in case your two-wheeler is stolen.
4. Man-Made Disasters
If due to incidents of riots, vandalism etc. any damage to your two-wheeler is caused, it will be indemnified.
If your two-wheeler catches fire, the damage will be covered under your own-damage policy.
If your two-wheeler get damaged during transit by road, rail, air.
What is Not Covered in Own Damage Two-Wheeler Insurance?
Most of these exclusions are common to all motor insurance plans except the third-party coverage, which is specific to the own-damage only two-wheeler insurance policy.
1. Third-Party Liabilities
The losses and liabilities that are caused to the third-party will be covered by your third-party insurance, not by own damage.
2. Drunk Driving
If it is found that the accident has been caused because you were under the influence of alcohol or any other form of intoxication, the damage would not be covered.
3. Driving without a Valid License
If you the policyholder, do not have valid Driver’s License, you claim would surely be rejected.
4. Consequential Damages
Sometimes certain damages take place after an accident. Theses are called consequential damages and will not be covered.
5. Reckless Driving
The accident that is caused because of your carelessness will not be covered.
6. Invalid Policy
If your two-wheeler insurance policy has expired or has lapsed, you won’t be able to make a claim.
Damage to your two-wheeler that has occurred due to normal wear and tear would not be covered.
Add-on Covers Under Own Damage Two-Wheeler Insurance
Most motor insurance companies provide a host of additional riders or add-on benefits that can be attached to a comprehensive or an own-damage only insurance policy. Here is a list of the various add-on options that are available with their own damage cover.
However, it is recommended that you check the availability of the same from your insurance provider:
1. Zero Depreciation
When you make a two-wheeler accidental claim, the insurance policy provides the cost of replacement minus the depreciated amount. So, you have to pay the cost of depreciation from your own pocket.
However, with a Zero Depreciation Add-on Cover, you will be entitled to make a claim for the entire amount of replacement of two-wheeler parts without any depreciation.
2. Breakdown Assistance
When your bike breaks down, the insurance company will pick it up and take it to the nearest garage and also drop you at a place of your convenience.
3. Key Replacement Cover
If you lose your keys or they get stolen, the lock replacement charges will be settled by the insurance company. However, you would have to lodge an FIR if the keys have been stolen.
4. Consumable Cover
Your base insurance does not cover consumables like nuts, bolts, lubricants etc. However, you can get a Consumable Cover and get them covered.
5. Pillion Rider Cover
A lump sum amount is paid towards the insured passenger in case of his/her death or a disability that was suffered during an accident.
6. Return to Invoice
Return to Invoice will help you claim an amount equal to the amount that you paid at the time of purchase. Road tax and registration charges are also included in this add-on.
7. No-Claim Bonus Protection Cover
Your insurance company offers you a discount in the form of NCB when you don’t make a claim during the policy term. NCB Protect enables you to save your accumulated bonus even if you make a claim.
8. Engine Protection Cover:
If your two wheeler gets stuck in the rain especially if there is water-logging, and the engine of the bike stops working, then the Engine Protection Cover add-on comes handy. The insurer would pay for the cost of repairing the engine if the same had been stuck in the water.
Difference Between Comprehensive, Third Party and Own Damage Two-Wheeler Insurance Plans
|Particulars||Third-Party Two-Wheeler Insurance||Own Damage Two-Wheeler Insurance||Comprehensive Two-Wheeler Insurance|
|Meaning||The most basic type of insurance that covers the loss and damages caused to the third party||If you already have a third-party two-wheeler insurance plan, this policy can be bought as a standalone policy||A comprehensive policy offers a blend of third-party liability along with own damage cover|
|Coverage||Damage to your own two-wheeler will not be covered, only third-party losses will be covered||Damages to your two-wheeler will be covered||Along with the third-party liabilities, damages to your two-wheeler will be covered too|
|Premium||Cheapest Premium||Affordable Premium||Most costly kind out of the three|
|Who can opt for this policy?||Anyone who has a car has to buy a third-party insurance||Anyone who has third-party insurance can buy Own Damage policy||Comprehensive insurance covers third-party as well as own damage, so anyone who has a car can buy this kind of policy|
|Need to Buy||Mandatory by law||Voluntary||Voluntary|
|Policy Tenure||3 years||1 year||1 to 3 years|
How to Buy Own Damage Two-Wheeler Insurance Online?
When buying own-damage insurance online, you can either visit the official website of a two-wheeler insurance company or go to any website which lists the prices and the features of all insurance policies. You can simply compare the various plans available with their cost to benefits and then choose accordingly.
The online portals are designed in a way that they are simple to work on, however, you can follow the steps given below:
- You need to fill in your personal details like- name, mobile number and email address
- Then you need to select the make, model and variant of the two-wheeler
- Post that you would require to select the City of Registration
- Then you need to select the policy that you wish to buy - If it is a brand new two-wheeler and you have to buy insurance for it, to buy the Own Damage Standalone cover, you would first have to purchase third-party cover
- After buying the third-party insurance, you can purchase the standalone own damage cover by selecting the option
- At this stage, you can check the availability of add-ons and add them to the plan, if you want to
- Soon you will receive quotes. If you are satisfied with the policy, you can make the payment, if not, you can pick some other company or add-ons
- Once the payment is made, you will receive a soft copy of the own-damage cover
Top #3 Points-to-remember:
1. Only if you have a valid third-party only insurance policy, you can buy a standalone own-damage policy and not otherwise
2. If your third-party insurance is a long term plan, you can renew the own-damage policy annually, till such time that the third-party only insurance policy is valid
3. The two plans can be bought from two different two-wheeler insurance companies
How to Renew Standalone Own Damage two-wheeler Insurance?
When it is time to renew your policy, you have two options:
1. You can either renew the policy from the same insurance company, or
2. You can choose a new insurance company and buy the OD policy from there
You will first have to select between the company website or an insurance aggregator website and then follow the steps given below:
- Select ‘own-damage’ policy ‘Renewal’
- Enter the required details
- Enter the Policy details, you would be able to avail an NCB now, if any
- Select add-ons, if you want
- Pay the premium through a credit/debit card or net banking, and the policy will be renewed
Factors Affecting OD Two-Wheeler Insurance Premium
When buying your own damage insurance, keep the following factors in mind as they have a significant effect on the premium that you pay:
The primary factor that influences the premium is the IDV, Insured Declared Value. It is better known as the current market value of your two-wheeler. So, the higher the IDV of your two-wheeler, the more premium you have to pay to your insurance company.
2. Age of the Two-Wheeler
The older your bike, the lower the IDV and thus the lower the premium.
3. Bike’s CC
The speed limit of your car depends greatly on its cubic capacity. The higher the cc, the higher the risk and thus higher the premium.
Your two-wheeler’s model, make and variant will be considered when the premium is to be calculated.
5. No Claim Bonus
When you do not make a claim during a policy year, you get a discount on premiums in the form of NCB.
When you add riders to your plan, the premium increases a little.
7. Policy Tenure
Buying OD cover for a longer-term can fetch you a discount on the premium. Discount offered by different companies varies a little.
The amount that you agree to pay as your share towards the claim reimbursement is called the deductible. A higher deductible will automatically decrease the cost of the premium.
If you live in a city or town with high road-accident cases of thefts, you may have to pay a little extra when buying OD two-wheeler insurance.
How to File a Claim Under Own Damage two-wheeler Insurance?
An ‘own damage claim’ can be made in 2 ways-
A cashless claim can be made when after an accident you take your damaged two-wheeler to a network garage. Make sure that you follow the steps given below:
- Notify the insurance company about the accident as soon as possible
- File a report in the nearest police station if someone else has got hurt
- Take the bike to the nearest network garage, if the bike is too damaged to be ridden you can ask the insurance company to arrange for a pick-up
- The company would send a surveyor to assess the bike. Some companies are now doing the assessment through video calls
- After the assessment, a report will be submitted by the surveyor
- You would also be required to fill in the claim form and submit a few documents
- Once the claim is accepted the repair will be started
- You would be able to take your two-wheeler home once it is repaired
The insurance company would settle the claim directly and you would not have to bear the cost of repair. However, a cashless claim doesn’t mean, you do not have to pay anything. Unless you have the cover of certain add-ons, you would have to pay towards the cost of consumables and the cost of depreciation.
It may not always be possible to take the damaged two-wheeler to a network garage. In such a case you could settle the claim through reimbursement. This means that you would have to pay for the damages up front and then after the repair, you can file for a reimbursement. Let us take a look at the steps to be followed:
- In case you can’t go to a network garage, you can also take your two-wheeler to a non-network garage
- File a report in the nearest police station if someone else has got hurt
- Make sure that you notify the insurance company about the accident as soon as possible
- You can get your bike repaired at the garage and pay the bills on your own
- Keep all the bills and receipts carefully as you will be reimbursed on the basis of these documents
- You can file for reimbursement when you take the two-wheeler home
- To process the claims, you would have to fill in the Claim Form, that can be taken from the company office or downloaded from the official website of the company
- You will have to submit the claim form and attach the bills and receipts of the repair-related expenses
- When approved, you will get the compensated from your insurance company
Documents Required for making Own-Damage Two-Wheeler Insurance Claims
The list of documents required at the time of making a claim is given below:
- Policy Papers
- Copy of Driver’s License
- Copy of the RC
- Duly filled and signed Claim Form
- Valid identity card
- All repair bills, in case of a reimbursement
- Copy of MCR (Motor Collision Report) for accidental claims, if filed
- Copy of FIR (First Information Report) for loss of vehicle or theft claims, if filed