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Understanding Own Damage Car Insurance
Feb 4, 2023

Understanding Own Damage Car Insurance: Meaning, Inclusions and Exclusions

As a car owner, you have different responsibilities that you need to take care of. Following road safety, abiding by the law while driving, and maintaining your car in a good condition are a few of them. More importantly, as a car owner, you are required by law to have car insurance. If you do not have one and are looking to buy one, the various available plans might confuse you. One of the types available for you to buy is own-damage insurance. What is provided in this insurance? Should you purchase it? Keep reading to know more.

What is Own-damage Car Insurance?

Earlier, the own-damage cover was a part of the comprehensive insurance for cars. Recently, the IRDAI allowed insurance companies to sell this cover as a standalone policy. So, what does this policy do? As the name suggests, the policy is designed to provide you with financial compensation for the damages caused to your car. *

Difference Between Own-damage and Third-party Insurance

Since own-damage insurance is designed to only compensate for the damages to your car, it may not help you if your car ends up damaging a third-party car in case of an accident. You would have to pay from your own pocket for the repairs. On the other hand, third-party car insurance only covers the cost of third-party repairs. It does not have own-damage cover in the policy. In this case, you would have to pay for the damages to your vehicle. *

What are the Inclusions and Exclusions of this Policy?

Here are the inclusions of this policy:
  1. Damages caused to your car in an accident. *
  2. Damages caused to/Loss of car due to natural calamities such as earthquakes and floods. *
  3. Damages caused to/Loss of car due to manmade calamities such as riots and vandalism. *
  4. Damages caused to/Loss of car due to a fire. *
  5. Damages caused to/Loss of car due to theft. *
Here are the exclusions of this policy:
  1. Third-party damages caused by your car. *
  2. Exclusion of the depreciated value of your car during a claim. *
  3. Breakdown of your car caused due to electrical or mechanical fault. *
  4. Damage caused to your car if being driven under the influence of alcohol/drugs. *
  5. Damage caused to your car if being driven with an invalid license. *
  6. Damage to your car caused during a war or terror attack*
*Standard T&C apply

Would this Policy Benefit You?

On one hand, the policy would benefit you by compensating for your own damages. However, you still need to buy the mandatory third-party cover. It’s the opposite with third-party insurance, where only third-party damages are covered. You have the option of bundling up these two policies together to avail yourself of comprehensive coverage. Alternatively, you can opt for comprehensive insurance, which offers own-damage and third-party coverage under the same policy. This negates the requirement of purchasing two separate policies. In addition, you can purchase add-ons such as zero-depreciation cover, emergency roadside assistance and key replacement and more to enhance the coverage of your policy. You can use the online car insurance premium calculator to see how much each policy would cost. Depending on the quotes you get, you can zero down to the policy that suits your budget and requirement. It would benefit you to do research online before you select and purchase a policy.

Why is Car Insurance Essential?

As a car owner, you might take all the necessary precautions regarding road safety and rules of the road. However, you cannot say the same for the drivers around you. If your car were to be involved in an accident, it can cause considerable damage to your car. There is also a chance of you and your co-passengers getting severely injured. In such situations, having car insurance can benefit you. It offers financial compensation to cover the cost of damages. If you or your co-passenger get severely injured, the personal accident cover offers financial compensation for that as well. * *Standard T&C apply


If you want financial protection for the repairs to your car, you can opt for a comprehensive policy. You can renew your car insurance online if it is nearing its expiry date to continue enjoying its .   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.  

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