Whether you are planning to buy a car or a bike, getting an insurance policy to ensure financial protection for your vehicle against unforeseen damages is a must. In India, there are three types of motor insurance policies that you can choose from - Standalone OD Policy, Third-party Insurance, and Comprehensive Car Insurance. While all three policies offer distinct coverage, the question is whether the Standalone OD Policy is enough for your car and bike. If you have thought about the same, this blog is for you. Continue reading and learn more.
What is a Standalone OD Policy?
A standalone OD, also known as an Own-damage policy, provides coverage for vehicle damages caused by accidents, theft, fire, or natural disasters. Unlike comprehensive insurance, it excludes coverage for third-party liabilities, which is otherwise compulsory coverage according to the Motor Vehicles Act. As it excludes coverage for third-party liabilities, the significance of buying OD cover under insurance for bike or car becomes important to understand.
What Does Standalone OD Policy Includes/Excludes?
Listed below are the inclusions/exclusions of a Standalone OD Policy:
Inclusions:
1. Coverage for damage or loss to the insured vehicle due to accidents
2. Protection against theft of the insured vehicle
3. Coverage for damages caused to the insured vehicle due to a fire outbreak
4. Protection against natural calamities such as floods, earthquakes, and storms
5. Personal Accident Cover for the insured against accidental death or disability.
Exclusions:
1. Third-party liabilities for damage or injury to others or their property
2. Damage due to general wear and tear, aging, or mechanical breakdowns
3. Losses incurred during illegal activities or when driving without a valid license or vehicle-related documents
4. Using the vehicle for unauthorised purposes
5. Intentional damage caused to the insured vehicle
6. Any damage caused due to being involved in overspeeding or reckless driving
Who Needs Standalone Own-damage Insurance Policy?
Listed below is the group of individuals who need a Standalone Own-damage Policy are:
1. If an individual has an existing third-party car insurance and they want coverage for their vehicle as well
2. If you occasionally drive your vehicle and do not require Comprehensive coverage
Is Standalone Own-Damage Policy Enough for Your Car/Bike?
While a Standalone Own-damage provides coverage against any damage to the vehicle, it still does not cover third-party liabilities. This is why having a Comprehensive vehicle insurance policy is important. Listed below are some of the reasons why you should buy a Comprehensive policy for your car or bike:
1. Financial Security: It provides coverage for any damage to the vehicle due to accidents.
2. Extensive Coverage: Protects against various risks, including theft, vandalism, natural disasters, and fire.
3. Customisable Option: You can customise a Comprehensive car insurance policy depending on your requirements. For instance, you can easily include add-ons like No Claim Bonus Protector, Zero Depreciation Cover, etc. You must pay an additional premium to include these add-ons in your policy.
4. Peace of Mind: A policy like Comprehensive Insurance offers assurance that unexpected incidents won't lead to significant financial burdens. The financial burden will be borne by the insurance company you have chosen.
How Can You Buy ACKO Car/Bike Insurance Policy?
Listed below are the steps in which you can buy a car or bike insurance policy with ACKO:
1. Go to the car/bike insurance option available on the ACKO website or mobile app
2. Enter the vehicle registration number and click on ‘check prices’
3. Also, enter the vehicle details like its make and model along with personal details like area pin code, mobile number, etc
4. You will then be able to see a list of available car/bike insurance plans
5. Select suitable add-ons if required
6. Continue with premium payment, after which you will receive the policy details on your registered email id
Summing Up
So, it’s clear that if you want complete coverage, it is better to choose a Comprehensive policy instead of a Standalone Own-damage policy. Moreover, ensure that your vehicle insurance coverage aligns with your budget.
Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.
