A car insurance policy is mandated through the Cars Act, 1988. The Act states that every car in India should carry valid third party coverage. This coverage protects 3rd party interests. Its smart the liability the motorist suffers if the car hurts or kills any third party or damages 3rd party property. However, when the car itself suffers any damage, there is no coverage granted through the third party cover.
This is how own damage auto insurance cover makes the image. Let’s know very well what this cover is all about.
Own damage auto insurance meaning
The own damage insurance for car is one that covers the damages suffered through the car itself. When the car is damaged due to natural or man-made causes or maybe it's stolen, the car own damage insurance cover would cover the financial loss suffered through the car owner and pay claims.
Does basic insurance policy your personal damage?
A basic insurance plan means a third party insurance plan that is mandated through the Cars Act, 1988. As said before, this basic insurance plan does not cover the damages suffered through the car. That's the reason, while third party cover is important, you should also opt for your own damage auto insurance for a comprehensive scope of coverage around the car.
Benefits of own damage car insurance
A policy of own damage insurance for car is recommended because of the various benefits that the policy provides. These benefits are listed below –
- Coverage against minor or major damages
If the vehicle suffers any minor or major damages due to any sort of accident, natural calamity or man-made reasons, the own damage auto insurance cover would make amends for the financial loss. The policy would pay the repair costs incurred in repairing the car if there is any minor or major damage. This would spare you considerable financial outgo because the repairs can be expensive, especially if you have a premium luxury car or maybe your vehicle suffers major damages.
- Coverage against theft
No matter how secure you retain your car, it might get stolen. When there is a theft, you are in position to lose a great deal of money when the car isn't traced back. The car own damage insurance plan covers theft cases too. If your car is stolen and never recovered, the insurance policy pays a lump sum amount within the claim. This claim reduces the financial loss suffered as well as allows you to purchase a new car to exchange the lost one.
- Affordable annual coverage
The own damage car insurance coverage is allowed for one year after which it can be renewed for continued coverage. The annual policy has an affordable premium that you can easily play and revel in an extensive scope of coverage.
- Easily available
You can purchase your own damage car insurance online in some simple steps. Moreover, if you choose to buy the policy through Turtlemint, you may also compare the different plans available in the market and choose a policy that offers the utmost coverage at the smallest cost.
- Choice of add-ons
The own damage car insurance policy has a range of optional coverage benefits called add-ons. These add-ons assist in improving the scope of coverage of the policy at minimal premiums. You can go for suitable add-ons and increase the coverage and the claim amount. Moreover, the add-ons look after all possible contingencies which you may face when using your vehicle.
- No claim bonus
If you do not make any claim inside your policy, you're entitled to receive a no claim bonus upon renewal. This bonus provides you with a price reduction around the renewal premium. It starts at 20% for that first claim-free year and then continues to increase after every successive claim-free year. You are able to claim up to and including 50% discount if you don’t make any claims for five successive years.
- Attractive premium discounts
When you select coverage for own damage, you may also get attractive premium discounts to lessen the premium. Discounts are permitted for installing safety devices, being a member of an automobile association, choosing a voluntary deductible, etc. besides the no claim bonus allowed by the plan.
Inclusions under own damage car insurance
The coverage provided by car own damage insurance coverage is quite comprehensive. The policy covers the next cases of contingencies –
- Damages towards the car due to disasters like earthquakes, floods, storms, hurricanes, landslides, etc.
- Damages towards the car due to man-made calamities like riots, fire, strike, malicious activities, etc.
- Theft from the car
- Damages to the car when it's being transported by rail, road, sea or air
Exclusions under own damage car insurance
Despite offering a great scope of coverage, the next instances are not covered in car own damage insurance –
- Damages suffered when driving the vehicle outside the boundaries of India
- Damages suffered when driving the vehicle under the influence of alcohol and/or drugs
- Damages suffered when driving the vehicle without a valid driving license
- Deliberate or self-inflicted damages
- Electrical or mechanical breakdown
- Depreciation and deterioration suffered due to use
- Damages suffered when violating the limitations of using the car
- Damages suffered when using the car to carry out illegal acts
How to calculate your own damage car insurance premium?
The premium from the own damage auto insurance cover depends upon various factors. Considering these 4 elements, you are able to calculate the premium using online premium calculation tools. The standards affecting the own damage car insurance premium are listed below –
- The Insured Declared Value
The IDV represents the coverage quantity of the own damage car insurance cover. It is calculated by deducting the depreciation in line with the vehicle age in the market price from the car. The higher the IDV the higher will be the premium and vice-versa.
- Age from the car
Since age affects the IDV, it is inversely related to the premium. When the car now has wrinkles, the IDV would be low and so will be the premium. Thus, the premium for new cars is greater than the premium for older ones.
- Registration details
The registration year and location determine the premium amount. The registration date shows the age of the car. A car registered recently would, therefore, be new and also have a higher premium than an older registered car.
Similarly, the registration location is also considered for premium calculation. Cars registered in metropolitan cities have higher premiums than cars registered elsewhere. For the reason that the prospect of claims and also the expected repairs are higher in metros.
- Make, model and variant of the car
The MMV from the car determines its market price. With respect to the market value, the premium is determined. Cars having high market values have high premiums compared to cars with lower values.
- Add-ons selected
If you opt for the available add-ons, the premiums would increase because each add-on comes with an additional premium.
- No claim discount
If you are renewing your own damage car insurance policy and there have been no claims in the previous years, you are able to claim a no claim discount. The higher the discount you've accumulated the low will be the premium and vice-versa.
- Other discounts
As mentioned earlier, you are able to claim a host of discounts under your own damage car insurance. So, with respect to the discounts that you could claim, the premium could be calculated. Higher the discounts lower will be the premium and vice-versa.
- Lapse from the policy
If you're renewing a lapsed car insurance policy, the renewal premium might be higher compared to renewing a policy inside the due date.
When one enters these details within the premium calculator, the premium for that own damage car insurance cover could be calculated and displayed.
Standalone own damage car insurance policy
To go for own damage cover, you've two options. They are as follows –
- Comprehensive policy
A comprehensive car insurance policy includes coverage for that mandatory third-party liability in addition to own damage cover. Thus, with a single policy, you are able to acquire both coverage benefits.
- Standalone own damage car insurance
As the name suggests, this insurance policy covers only the damages suffered by the car. Coverage for third party liability isn't allowed under this plan. The standalone own damage car insurance is available only if you have valid 3rd party insurance policy around the car. Usually, this policy is designed for new cars where five-year 3rd party coverage is required. In such cases, you can opt for a long term third party cover as well as an annual standalone own damage cover.
Own damage car insurance renewal
The own damage insurance for car is allowed for just one year and you've got to renew the insurance policy annually for non-stop coverage. Own damage auto insurance renewal can be done online or offline. Let’s understand how –
- Offline own damage auto insurance renewal
To renew your vehicle own damage insurance offline you can either visit the branch from the insurance company or make contact with an insurance agent of the company. Provide your policy number to understand the present policy details. Pay the renewal premium online and inflict alterations in the policy if you would like. Once the fees are received, the insurance policy would be renewed.
- Online own damage car insurance renewal
The online mode of own damage auto insurance renewal is quick, simple and easy , instantaneous. You are able to renew online from the website of the insurance company. Just go to the company’s official website, pick the renewal option and supply your policy details. You can check your overall coverage and also make changes if needed. The renewal premium would be displayed which you'll pay online using any digital payment modes. Once the fees are successfully paid, the insurance policy would be renewed instantly.
Alternatively, for those who have bought your own damage car insurance policy online through Turtlemint, you are able to log to your account and renew through Turtlemint’s platform. Turtlemint also allows you to compare your existing policy along with other available policies and then choose the best plan. Pay just the renewal premium on the internet and your policy could be instantly renewed.
How to assert car insurance for own damage in India?
In case a person suffers any contingency that is covered by the policy, here’s how to claim auto insurance for own damage in India –
- Inform the insurance company immediately from the claim. The company would register your claim and issue a Claim Reference Number. This reference number will come in handy for tracking your claims and for claim filing.
- When you inform the insurance company, it would direct you to take your car to the nearest networked garage. You may also obtain the listing of networked garages in your town when intimating the claim.
- At the garage, the surveyor would visit and assess the damages suffered
- The surveyor would, then, prepare a claim estimate and submit it to the insurance company.
- Based on the surveyor’s estimate, the company would approve cashless repairs
- Once the approval is received, the garage would start the mending. The bills would be settled directly by the insurance company
- For any inadmissible costs and deductibles you need to spend the money for remaining price of the repairs
- The claim form along with other relevant documents should be submitted to the insurer for claim settlement.
- Then you can go ahead and take delivery of your car
- If, however, you take your car to a non-networked garage, you would have to bear the repair costs initially. Then, when the repair bills and also the claim documents are submitted, the insurance company would reimburse you for the costs incurred.
- In case of theft, inform the police and file an FIR
- The police would try and locate your car. If they fail to do so, they would issue a non-traceable certificate.
- Submit this certificate along with the other claim related documents for claim settlement.
- The insurance company would pay the IDV and also the claim could be settled
You can also take Turtlemint’s help in case of the auto insurance claims. Turtlemint includes a dedicated claim handling team that will go ahead and take claim steps on your behalf and help you in obtaining a quick claim settlement. Just inform Turtlemint of your claim by calling 1800 266 0101 or by sending an email to support@turtlemint.com and then Turtlemint’s team would perform the work to get the claim settled.
So, understand the idea of own damage auto insurance after which buy suitable coverage for the car for all-around protection.
Frequently Asked Questions
- What would happen if I failed to do my own damage car insurance renewal on time?
If you do not renew your own damage car insurance policy promptly, the insurance policy would lapse and the coverage would stop. Thereafter, if there is any damage, you would need to bear the financial losses. You are able to renew a lapsed policy too but this type of renewal would require inspection and also the policy would be renewed once an effective inspection is finished. The premium might also be hiked on such own damage auto insurance renewals. If, however, you do not renew your policy within 90 days from the date of lapse, the accumulated no claim bonus would be lost.
- What is the rate of depreciation for IDV calculation?
The rate of depreciation for calculating the IDV depends on the age of the car. It is as follows –
Age from the car
Rate of depreciation applicable
Up to six months
5%
More than 6 months but just one year
15%
More than a year but less than 2 years
20%
More than 2 years but under 3 years
30%
More than 3 years but under 4 years
40%
More than Four years but less than 5 years
50%
For vehicles aged 5 years and more, the IDV is decided mutually between your insurance company and the policyholder.
- Can my own damage car insurance claim get rejected?
Yes, your claim claim might get rejected for several reasons. For example, when the claim is made for an excluded cost, it would be rejected. Similarly, if there is a chance of fraud or if the claim process isn't followed correctly, the claim would get rejected. Claims are also rejected in case your policy has lapsed.
- Is own damage car insurance cover more expensive than third party cover?
Yes, it's. The reason is that the own damage cover allows a wider scope of coverage than a 3rd party cover. Moreover, the premium for own damage car insurance cover is determined by the insurance company and varies across insured while third party premiums are fixed by the Insurance Regulatory and Development Authority and therefore are the same across insurers.
- What are deductibles?
Deductibles really are a part of claims that aren't payable by the insurance provider but on your part. In own damage car insurance policies, there is a compulsory deductible which is paid in the event of every claim. Moreover, there is a voluntary deductible too that is optional. If you choose this deductible and choose to pay an element of the claim out of pocket, you can earn a premium discount.
