Owning a car brings immense pride followed by that of a house. For many, it is also ticking off one of the major items from their bucket list. Since it holds so much importance in your life, its protection is imperative. Since accidents occur unannounced, it is best to be prepared for these events. A four wheeler insuranceis the perfect way to ensure protection against damages that may even result from totalling your car.
But among the two types of car insurance –a third-party cover or a comprehensive policy – that are available, a third-party cover offers limited coverage. It only offers protection against legal liabilities thereby exposing all perils for your car. For that reason, it is advisable to buy a policy that offers own damage cover. Own damage cover is either available as standalone plan as well as a part of comprehensive plans.
What is covered under the own-damage insurance cover?
An own damage plan protects against the following perils:
- Accidental damages:Accidents often end up damaging not just a third person’s car, but also your car. During these situations, own damage cover helps to avoid financial losses that arise for the repair costs.
- Protection against natural calamities: Forces of the nature are unpredictable and often have a devastating effect on motor vehicles. Earthquakes, cyclones, floods, etc. often witness car and bikes getting damaged. With own-damage cover, these various losses can be insured.
- Man-made dangers: Vandalism, riots, strikes, terror attacks are some of the man-made perils that are covered by insurance plans. These perils that are covered under a four wheeler insurance plan having own-damage coverage help to avoid the hefty repair costs associated to your car.
- Events of theft: Theft is another event where the financial loss is huge and can wipe off your life savings. With a policy that offers own damage cover, the insurance company compensates by paying the insured declared value to the policyholder.
- Total loss: Total loss is a situation where the damage to your car is of a beyond repair. During a severe accident it may happen that the claim amount exceeds 75% of the insured declared value. Such a situation is called as constructive total loss. Both these situations, total loss and constructive total loss are covered under the own damage cover. Please refer to the official website of IRDAI for further details.
* Standard T&C Apply
What is excluded from the own-damage insurance cover?
While the above defines the scope of an own damage insurance plan, the following are some of its limitations:
- Third-party liabilities: Since there is a separate insurance cover for third-party liabilities, they are excluded from the scope of own-damage policies.
- Driving without valid documents:An owndamage policy excludes the situations where you, the policyholder, are driving without a valid set of documents like license, PUC and registration certificate.
- Driving under influence of intoxicating substances: Damages to your car due to drunk driving or driving under the influence of other intoxicating substances are some situations that are outside the own-damage policy cover.
- Consequential damages: Damages that are a result of other events that are excluded from your insurance coverage like fire are excluded from own-damage policy scope.
* Standard T&C Apply
These are some ways how an own-damage plan comes handy. When buying an own damage cover, it can also be topped with add-ons that end up increasing the premium. To keep them in check, you can make use of a car insurance premium calculator. Also note that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.