What are the benefits of OD insurance?

Posted on: Aug 2, 2024 | 3 mins | Written by: HDFC ERGO Team

What are the benefits of OD insurance?

Having bike insurance is very convenient, especially for the daily commute to work or college, but then we need to make sure that our investment is protected. In addition to the compulsory third party bike insurance that will cover amounts due to third party claims, it is advisable to take a two wheeler own damage cover or comprehensive bike insurance cover to protect your car.

In this article, we will learn everything that pertains to the two wheeler own damage insurance including its importance, scope of protection, and so on.

What is two wheeler own damage insurance?

Two wheeler own damage insurance protects the bike owner from having to bear the loss from any damages to the two-wheeler vehicle.

Two wheeler own damage insurance protects your vehicle from damages or losses arising from:

1. Accidents

2. Theft

3. Floods, earthquakes etc, are forms of natural calamities which can be the reason

4. Fire, explosion

It is also very effective in providing a comprehensive shield for your bike or scooter. This is an all-rounded policy on your bike that not only covers the costs of compensation on your bike but also on loss or theft of the particular bike.

Therefore, two wheeler own damage cover means that you will be getting an insurance cover for all the possible monetary losses that you can probably encounter on the off chance that your two wheeler has suffered any physical loss.

Benefits of two wheeler OD insurance

Listed below are the benefits of two wheeler own damage cover insurance.

1. Bears repair expenses

Own damage insurance reimburses the expenses that one may have made in the process of repairs of damages that may have been occasioned by collision, or breakdown among others.

2. Safeguards you from total loss

In the event, that your bike/scooter becomes a total wreck due to an accident or which hit you, you will be reimbursed under the OD cover based on the IDV of your bike/scooter as mentioned at the time when the policy is issued. This has a very positive impact on controlling large-scale expenditure, especially in the later years.

3. Theft Insurance

The OD insurer will compensate the IDV in instances where your two wheeler is stolen to enable you to purchase a new one. This implies that the costs which may be incurred in instances where the bike has been stolen are fully taken care of.

4. Claim management

This is one area where a number of insurance companies attract customers by offering products with the easiest and most efficient claim procedures. This makes it easy especially in the event of an accident or breakdown as required by the degree.

5. Payless premiums

Compared to the comprehensive bike insurance policy that requires you to pay a premium for a minimum of three years, an own damage cover allows you to buy bike insurance with one-year validity.

Listed below is what is covered in an own damage standard policy

A good two wheeler insurance contemplates several risks and threats which can adversely affect your vehicle and shield you from suffering the costs resulting therefrom. These include:

1. Accident –

It covers the damage that can happen on the road, colliding with a wayside obstacle, or breakdown means or any kind of accident related damages which may need repair or are totalled.

2. Total loss/Receipt of IDV –

This refers to any theft of a bike/scooter and getting reimbursed for it.

3. Fire and explosion –

A fire or an explosion can reduce your machine into a pile of ashes. But the insurance policy will ensure that the heat does not get to you, or rather your pocket.

4. Calamities –

Certain circumstances are beyond human control for instance through natural disasters. But with an own damage cover, you get your bike back on the road in a way that does not break the bank.

The premium for bike own damage insurance depends on factors like:

1. Insured declared value (IDV)

It costs with reference to the sum insured on a proportionate basis based on the invoice price.

2. Engine capacity (CC) of the vehicle

An extra amount is chargeable for bikes with an engine capacity of above 150 CC.

3. Model and make

Newer and superior models of two wheelers attract higher premiums.

4. Location

The cost differs based on the various cities it operates in, depending on the level of theft and expense of the garage.

5. Optional covers chosen

These are extra features that augment the main premium figure.

Third party bike insurance is mandatory, as per the prescribed norms of the Insurance Regulatory and Development Authority of India. Own damage cover refers to the coverage of the vehicle by the owner and it is usually not mandatory.

While purchasing insurance for two wheelers in India, the buyer can additionally choose an Own Damage (OD) policy alongside the Third Party (TP) policy, which is mandatory. There is also the option of using online OD calculators whereby you input such details as the make, model, CC, year of manufacture, IDV, and cover options.

For instance, for a 150CC, 2018 Bajaj Pulsar bike with IDV of Rs.70,000, with NCB of 20 per cent and add-on of Rs.3,000, the OD premium amounts to approximately Rs.5,200 excluding GST. Calculating this OD premium and adding the fixed TP premium yields the total two-wheeler premium to be paid.

How to get bike OD insurance?

To buy own damage car insurance policy online you have to follow the simple steps as follows:

1. Visit the website and enter all the information is your car registration number, mobile number/ email ID.

2. Here you will be able to make your choice of either going for full-fledged own damage insurance or third party own damage insurance. Therefore. if you already have a third party car insurance policy, go for the standalone own damage car insurance plan.

3. Input the policy details and the add-on to the cover you would wish to take.

4. The last step is to make a payment of the premium amount through the online payment system.

The policy along with a confirmation mail will be sent to you. While purchasing, one must also compare its features like IDV, add-ons etc so that your bike/scooter has the best of the insurances.

Summing Up

With this guide, you would comprehend why an own damage insurance must be a good partner to your bike insurance. The basic third party bike insurance is no longer enough to safeguard the precious asset; it is high time that one goes beyond third party insurance today. Two wheeler own damage cover will make sure that you will get all the coverage your bike needs so that you can continue indulging in every ride you take without necessarily having to factor in the occurrence of misfortune.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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