New Delhi India, July 31: If you currently only have third-party liability cover and are concerned about covering repair costs for your vehicle, consider opting for a standalone Own Damage (OD) car insurance policy. It will take care of your financial obligations whenever your car gets into an accident. Customise the policy according to your needs with add-ons you require to secure your vehicle at all times. However, estimate your insurance cost in advance and ensure it is within your budget. It will remove any worries about paying the premium every time.
All car owners in India must have third-party insurance according to the guidelines of the Motor Vehicles Act 1988. However, this insurance only covers the liabilities caused by injuring third parties or damaging their property. So when you want to protect your car from any harm, you will need to get a stand-alone own damage (OD) insurance along with your third-party policy.
The Insurance Regulatory and Development Authority of India states that any car purchased after September 2018 is eligible for a standalone OD car insurance policy.
How Does the Stand-Alone OD Policy Work?
A stand-alone OD policy is an optional cover that you can get with your general third-party insurance. It will protect your car from theft and damages caused by accidents, fire, natural calamities and man-made disasters. This ensures that you don’t experience any financial burden due to the repairs or replacements resulting from an unfortunate incident.
Risers are also available with stand-alone own damage car insurance. This gives you the freedom to personalise your policy with the add-ons you require.
Who Should Get a Stand-Alone OD Car Insurance Policy?
The stand-alone own damage insurance policy is meant for all car owners, but it is especially needed for those who fall under these categories:
• People in high-risk places: If you live in a region that has high theft rates or is prone to natural disasters, then having an OD insurance plan can make a huge difference.
• Drivers with only third-party insurance: Adding a stand-alone OD cover to your existing third-party policy can protect your vehicle efficiently.
• High-value vehicle owners: If you have a high-end or a luxury car, then you can benefit a lot from your OD insurance since the replacement or repair costs can be incredibly high for these cars.
• Cost-Conscious Drivers: For people who want to keep costs low by choosing third-party coverage and OD cover from different insurers, this policy offers flexibility and potential savings.
Inclusions and Exclusions of the Stand-Alone OD Car Insurance
The stand-alone OD car insurance is significant for protecting your car, but its inclusions and exclusions vary depending on the provider.
Here are some of the standard inclusions you can expect in this car insurance policy.
• Fire and explosion: The policy covers any damage caused to your car due to an explosion or an accidental fire breakout.
• Accidental damage: The plan covers damages due to a collision or fall.
• Man-made calamities: Several insurance providers offer coverage for damages resulting from man-made calamities like strikes, riots, vandalism, and more.
• Theft: If your car gets stolen and can’t be traced, then your own damage policy will provide the necessary financial assistance to buy a new one.
Now, here are some of the standard exclusions of the stand-alone OD policy:
• Intoxicated driving: The OD coverage does not cover any loss or damage caused by intoxicated or illegal driving practices.
• Third-party liabilities: The own damage insurance plan is designed specifically for the insured vehicle. So it does not compensate for any third-party damage your car may cause.
• Electrical or mechanical breakdown: The insurance policy does not cover mechanical or electrical issues, unless they happened due to a mishap.
• Driving without a licence: If your car faces any damage when driving without a licence, then it doesn’t get covered under the plan.
Estimating Stand-Alone OD Insurance Premium
Availing a stand-alone own damage car insurance policy means paying a specific amount to the provider periodically for the services you want to get. Determining the premium means considering factors like your geographical location, your car’s Insured Declared Value, its age, make and model, along with selected add-ons.
Once these factors have been considered, the premium is estimated using the following formula:
IDV = (The vehicle’s showroom price – depreciation value) + (Depreciation cost – price of car’s accessories)
Insurance premium = IDV ✕ (Premium rate) + Riders – Discounts and benefits on the chosen plan
The Rising Importance of Stand-Alone Own Damage Car Insurance
As car ownership becomes more nuanced in 2025, many vehicle owners are realising that basic third-party insurance is not enough to fully protect their investment. This is where stand-alone own damage car insurance plays a crucial role. With the flexibility to choose coverage from different insurers and tailor protection to suit your car’s value, usage, and risks, OD policies have gained strong relevance. Whether you’ve recently purchased only a third-party policy or want better protection without switching providers, a stand-alone OD cover offers comprehensive security and peace of mind. This is why it’s becoming a go-to option for today’s smart car owners.
Conclusion
Ultimately, getting the right stand-alone OD insurance policy can be a complete game-changer due to all the benefits it offers your vehicle. When added to your third-party car insurance policy, it provides comprehensive protection. It ensures you’re financially protected against incidents that are not covered under a basic third-party plan. You can also customise your OD policy to enhance the coverage.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
