What Is Own Damage Motor Insurance Policy & Claim Process

Summary: An Own Damage Motor Insurance Policy protects your vehicle from various damages, including those caused by natural calamities like floods and earthquakes, or man-made incidents such as vandalism and riots. While third-party insurance is mandatory and covers damages to others, an Own Damage policy is optional but advisable for protecting your own car. In September 2019, IRDAI introduced standalone Own Damage insurance, allowing for enhanced coverage through optional riders. The claim process involves immediately informing your insurer, filing an FIR if necessary (for serious damage, theft, or third-party involvement), and capturing photographic evidence. You’ll need to submit documents like your policy copy, FIR, driver’s license, and registration. For repairs, you can choose between network garages (for cashless settlement) or a garage of your choice (for reimbursement, after paying a mandatory deductible). Important considerations include timely notification to the insurer (ideally within 24 hours), accurate information in your claim form, and understanding the impact on your No-Claim Bonus for minor damages. Exclusions typically include accidents outside geographical limits, driving without a valid license, using a personal vehicle for commercial purposes, or driving under the influence.

As you are aware that it is mandatory to have a motor insurance policy while plying your motor vehicle at road or any public place. Third Party Motor Insurance Policy is must for all motor vehicles. TP Policy protects third party other than owner of the vehicle and the car in case of any mishap. It is advisable to protect you and your family as well as to claim damage of your car in case of accident , you must have a Own Damage Motor Insurance Policy. It covers third party also and reimburse any damage caused to your car in case of accident.

In September 2019, the Insurance Regulatory Development Authority of India (IRDAI) introduced the standalone Own-Damage Insurance. This type of policy covers your vehicle in case of damage caused by natural calamities such as floods, earthquakes, or hurricanes, as well as man-made disasters like vandalism, riots, and terrorist attacks.

Additionally, Own Damage Car Insurance allows policyholders to add optional riders for enhanced coverage.

Step-by-Step Process to Claim Own Damage Car Insurance

Making a claim on your car insurance after an accident can be daunting, but it is essential to understand the process to ensure your claim is settled promptly. Below are the steps you need to follow when filing a claim for your own damage insurance:

1.Inform Your Insurance Provider Immediately. As soon as the incident occurs, contact your insurance company to notify them of the damage. Be transparent and provide all the necessary details about the event to avoid any future complications in settling the claim.

2.File an FIR with the Police (If Necessary). If the incident involves serious damage, theft, or if a third party is involved, you must file a First Information Report (FIR) with the police. However, for minor damages like small dents or scratches, an FIR may not be required. Always check the specific requirements of your insurance policy.

3. Capture Photographic Evidence. Document the accident scene by taking clear photographs of the damage to your vehicle. This visual proof will assist the insurance provider in assessing the extent of the damage and ensuring that you receive appropriate compensation.

4. Submit the Necessary Documents to the Insurance Company. To process your claim, the insurance company will require certain documents. These include a copy of your insurance policy, the FIR (if applicable), your driver’s licence, the car’s registration certificate, and any other relevant paperwork.

5. Get Your Car Repaired. You have two options when it comes to repairing your car: you can either take it to a garage of your choice or have it repaired at a network garage recommended by your insurer. In the case of the latter, the insurance provider may settle the repair costs directly with the garage.

6. Claim Settlement Process. The claim settlement process depends on whether you opt for a cashless or reimbursement settlement. For cashless settlements, the insurance company will pay the repair costs directly to the garage. If you choose reimbursement, you will need to pay for the repairs upfront and submit the receipts to the insurer for compensation. Keep in mind that you will be required to pay a mandatory deductible.

Documents Required for Claiming Own Damage Car Insurance.

To ensure a hassle-free claim process, you will need to submit the following documents;

• A copy of the insurance policy
• A copy of the FIR (if applicable)
• A completed and signed claim form
• A copy of the vehicle registration certificate
• A copy of the driver’s licence
• Repair cost estimates
• Original medical receipts (in case of bodily injury)
• Original receipts for any additional expenses incurred

Important Considerations when making a claim;

While the process may seem straightforward, there are some important factors to keep in mind;

1.Immediate Notification:Always inform your insurer as soon as possible after the accident, ideally within 24 hours. A delay may result in your claim being denied.

2. FIR Filing: If necessary, make sure to file an FIR with the local police station. This is crucial for incidents involving theft, serious damage, or third-party involvement.

3. Claim vs. No-Claim Bonus:If the damage is minor, consider whether it is worth making a claim. Opting not to claim could allow you to retain your No-Claim Bonus (NCB), which could lead to lower premiums in the future.

4. Accurate Information: Ensure that all the details in your claim form are accurate. Providing false information could result in the claim being denied.

5. Legal Compliance:Always follow legal procedures in the event of an accident and avoid making any hasty settlements with third parties. Additionally, ensure that you have all the necessary paperwork to support your claim.

PLEASE NOTE: Filing a claim for own damage car insurance can seem overwhelming, but understanding the process and having the right documents can make it much easier. The coverage offered by Own Damage Car Insurance is essential for protecting your vehicle from both natural and man-made disasters.

While own damage insurance may come at a higher premium than standard policies, the peace of mind it provides is invaluable. Remember to renew your policy on time and always consider the age and condition of your vehicle when selecting coverage options.

DISCLAIMER: the article presented here is only for sharing information with readers. In case of necessity do consult with professionals.

KEY TAKEAWAYS:

Own Damage Car Insurance Cover And Exclusions

As the name suggests, own damage cover helps with the cost of repairing your own vehicle when it gets damaged.

Damages caused by the following are all covered: 

• Accidental damage: provides coverage to the damages caused to your vehicle in case of any accident.
• Theft of vehicle.
• Damage to vehicles due to natural calamities like flood, cyclone, landslide, rockslide, earthquake, etc.
• Damage due to fire and lightning.
• If there is any damage while the vehicle is being transported through any mode i.e., road, rail, air.
• Damage due to man-made disasters like riot, strike, malicious act, terrorism.

Key exclusions  include the below: 

• Accidents that occur outside the geographical limits defined in your policy will not be covered.
• If you are driving without a valid driving license and meet with an accident, then the claim will not be entertained.
• If you use your personal vehicle for commercial purposes, racing, speed testing, etc.
• No claims will be covered if you are caught driving under the influence of alcohol.

Difference Between Third-Party Car Insurance and Own Damage Car Insurance

Key differences between third-party car insurance and own damage car insurance can be categorized into areas of coverage, compulsion, customization, and validity.