Purchased a new bike and unsure of the right insurance policy to buy? Or do you have the standard Third Party Liability insurance and are looking to upgrade your policy?
As a bike owner, it’s understandable that you would want only the best insurance for your vehicle. Aside from the mandatory Third Party Liability insurance policies, there are two policies you can take that offer coverage for your bike against damages- Standalone Own Damage and Comprehensive two-wheeler insurance.
If you were debating between which one to take, don’t worry! We’ve compared the features, relative cost, and benefits of Own Damage and Comprehensive two-wheeler insurance policies so that you can make a smart, well-informed decision.
What is Own Damage insurance?
Own Damage insurance provides coverage for your car in case of damages, theft or loss. This type of insurance plan is beneficial if you already have Third-party insurance for your vehicle.
Since Third-party insurance covers only third-party injuries, death or property damages, you should buy OD cover for your car. The Own Damage insurance provides coverage if your car gets damaged in an accident, natural disaster, man-made calamity, etc. The coverage also includes total loss and theft of the insured car as well.
Comprehensive insurance for cars
Buying Comprehensive car insurance means that you obtain a combination of third-party and OD coverages for your car. So, you can feel stress-free about all kinds of liabilities, whether related to third parties or your own vehicle.
Difference between Own Damage (OD) and Comprehensive insurance
The major difference between OD and Comprehensive insurance is the coverage they offer. An OD insurance covers the insured vehicle against damages, loss, theft, etc. However, it does not cover third-party liabilities.
A Comprehensive plan, on the other hand, is a combination of Own Damage and Third-party Liability insurance. Hence, it covers your vehicle against damages, loss or theft as well as against third-party liabilities.
|Parameter||Comprehensive car insurance||Own Damage car insurance|
|Inclusion||It is an all-in-one insurance plan for a car. Not only does it cover your car against damages, loss and theft but provides third-party liability coverage as well.||The OD insurance covers your vehicle against damages, loss, theft, etc. But it doesn’t include third-party liability coverage.|
|Premium||The premium is higher than standalone Own Damage insurance.||The premium is lower than Comprehensive insurance.|
|Third-party injury/death||It covers you against third-party injuries/death.||It doesn’t cover third-party injuries/death.|
|Third-party property damage||It provides coverage in case your car causes damages to third-party property.||Third-party property damage coverage isn’t available with OD insurance.|
Benefits of Comprehensive car insurance
Below are the benefits why many people buy a Comprehensive Policy for their cars.
1. Financial safety against third-party liabilities
Compliance with The Motor Vehicles Act, 1988 is one of the reasons why car owners purchase insurance. Third-party car insurance is mandatory by law to cover the losses if your car causes a third-party injury/death or property damage.
The advantage of Comprehensive insurance is that it includes Third-party Liability coverage. Thus, you can legally drive your vehicle in India with financial safety against potential third-party incidents on the road.
2. Coverage against damages/loss of your car
Having third-party coverage alone doesn’t protect your car against any damages. But, there may be many situations out of your control where your car may get damaged or lost.
A Comprehensive policy offers coverage to the insured car for unforeseen situations. Thus, you get coverage against damages to your vehicle due to natural disasters like earthquakes, cyclones, etc. Plus, this policy provides coverage against car damages caused during a man-made calamity like riots, etc.
3. Compensation in case of total loss or theft
Apart from all the calamities, this type of policy even covers in case your car gets stolen or damaged beyond repair. Thus, you don’t have to bear the financial burden of theft or total loss of your car in such scenarios.
4. Customisation of add-on covers
Another advantage of a Comprehensive car insurance plan is the ability to customise it with add-on covers. Based on the availability of add-ons, you can include additional coverages for your car.
Some of the generally available add-on covers include Engine Protection Cover, Roadside Assistance Cover, Zero Depreciation Cover, Consumables Cover, etc.
5. Cost-effective insurance
Comprehensive insurance is a cost-effective way of buying insurance. You get to include all required services, benefits and coverages into one policy. Plus, the ability to customise a plan allows you to avoid over-expenditure on insurance.
When and who needs Comprehensive car insurance
A Comprehensive car insurance will be an excellent upgrade from Third-party insurance at the time of policy renewal.
This policy is suitable for everyone who would need financial protection against damages to their car or losses incurred by the vehicle apart from third-party liabilities. It helps to avoid the hassle of buying different coverages separately, which saves a lot of time and effort.
When and who needs Own Damage insurance
If you already have an active Third-party Liability insurance plan, then buying Own Damage insurance separately would be a practical choice over a Comprehensive plan.
In a nutshell, OD insurance covers your car against damages, theft and loss, and Comprehensive insurance combines OD coverage with mandatory third-party coverage.