Standalone Own Damage Bike Insurance

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6 min read

Updated on Jul 13, 2022

Standalone Own Damage Cover for Bike Insurance

When it comes to providing two-wheeler insurance coverage to your prized possession – your bike – you must have a complete protection plan to keep it secured against any kind of damage. Hence, you must procure a Standalone Own Damage Bike Insurance Plan to protect your insured two-wheeler against damage or loss that it incurs because of any accident etc.

What is Own Damage (OD) Insurance Meaning?

So, if you ask what Standalone Own Damage Bike Insurance is, it is a plan that covers your insured bike against its own damages only. So, any injury, damage incurred by your bike due to any mishap, accident, disaster, theft etc. are covered under this plan. This also includes damages incurred by your bike during transit. This is a rather new plan introduced after receiving approval from IRDAI in September 2019.

Features of Own Damage Two-Wheeler Insurance Plan?

Below are some features of the Own Damage bike insurance:

  • OD insurance covers the policyholder against any damages done to the insured two-wheeler.
  • The OD insurance offers extensive coverage as it also allows the insured to avail add-on covers to enhance the plan further.
  • However, the premium of OD insurance is slightly high as compared to the third party two-wheeler coverage.
  • The OD coverage allows protection against things like natural disasters and any man-made catastrophe. Further, it covers your bike if it gets damaged due to collision with a third party.

Own Damage Bike Insurance Vs Comprehensive Bike Insurance: Comparison

Below are the key differences between Own Damage and Third Party Bike Insurance as well as OD and Comprehensive Two-wheeler Insurance:

Third-party Two-Wheeler Insurance  Standalone Own Damage Two-Wheeler Insurance Comprehensive Two-Wheeler Insurance
This obligatory insurance covers only against third-party liabilities. It includes damage caused to third-party persons, property as well as death. This is not an obligatory insurance. It covers the insured bike against any damages. In terms of cover, it is greater than third-party insurance This is again not an obligatory coverage. It includes both third-party liabilities as well as costs incurred for your bike’s own damages.
It offers coverage against third-party liabilities only. It offers coverage against your bike’s own damages only. It offers coverage against third-party as well as Own Damage expenses.
This policy is available at low premium amount Here, the premium is high, but it decreases with time Here again, premium is high as the policy covers both third-party and OD
This policy is not affected by depreciation rate It gets affected by depreciation rate It also gets affected by depreciation rate

So if you ask, is Own Damage insurance mandatory for bikes, the answer is NO. But it allows greater coverage than third-party insurance.

Factors Affecting Own Damage (OD) Bike Insurance Premiums

Below are the basic factors that are taken into consideration while calculating OD insurance premiums:

  • IDV or Insured Declared Value – This serves as the precise market value of your vehicle, which influences the premium that an insured pays for OD bike insurance.
  • Age and model of the bike – It also is a significant factor along with the make of the two-wheeler. The premium of OD bike insurance depends on the value of the bike in the market as well as the model (low-cost or finest model) of the bike. The higher the value of the bike or if it is a new bike and the model is also first-class, the premium is also high and vice versa.
  • Add-on Covers – If you have selected varied add-on covers, the premium of your OD insurance will be high.
  • NCB or No Claim Bonus – If you have any discount of NCB accumulated earlier and that can be added to your current policy, you might have your insurance premium lowered.
  • Bike CC – This is the speed of the vehicle, which also affects the premium of OD coverage. Here again, if the CC of your bike is high, you have to pay a higher premium.

Inclusions of Standalone Own Damage Bike Insurance?

An OD insurance cover offers the below mentioned inclusions:

  • It covers against accidental damages that your two-wheeler sustains due to any collision, accident etc.
  • It covers against natural disasters such as earthquake, tropical storm, flood etc.
  • It also covers against man-made catastrophe like riots, any kind of explosions, fire etc.
  • It also covers against theft of your bike.

Exclusions of Standalone Own Damage Bike Insurance?

The following are the exclusions of OD two-wheeler insurance:

  • It only covers damages that are caused to your own vehicle. It doesn’t offer coverage against third-party liabilities.
  • It doesn’t offer coverage against Consequential damages caused to your two-wheeler, which are not due to any accidents.
  • This policy also doesn’t cover for any damages caused by the negligence of the insured or due to the fault of the insured.  For instance, if your ride your bike during heavy and in flooded areas despite knowing the consequences and the bike gets damaged.

Benefits of bike Own Damage Insurance

Below are some of the key advantages of OD bike insurance:

  • Flexibility – With the OD bike insurance, the policyholder gets the opportunity to avoid buying the expensive comprehensive insurance and go for the less expensive OD bike insurance along with third-party coverage.
  • Different insurers – Also, with Own Damage insurance, you can buy the plans – third party and OD – from separate insurers of your choice rather than buying them from the same policy provider as in the case of comprehensive plan.
  • Cost-effective – Buying short-term OD coverage along with third-party policy is economical as compared to buying a comprehensive policy. Since you can buy each of the policies from a separate insurer, it becomes reasonable.

Own Damage two-wheeler insurance – Steps to Policy Renewal with PayBima

Below are the steps to follow for Own Damage insurance renewal:

Step 1: Visit the portal of PayBima

Step 2: Submit the registration number of your two-wheeler along with other information like type of fuel, model and make of bike, registration year and city where you registered your bike etc.

Step 3: Submit the renewal date of your OD insurance policy and the insurer details whom you have bought the policy from.

Step 4: Now submit some personal details like name, Mobile number, tenure of policy etc. and click ‘Continue’.

Step 5: You can see different quotes in front of your screen. Compare them to buy the best policy suiting your requirements. Here, you can even choose add-on protection to augment the coverage of your insurance.

Stage 6: Once done, proceed to ‘Buy Now’ and get the payment done. The policy document will be sent to you through email on your registered ID.

How to claim bike insurance for Own Damage in India?

Here are the steps to follow:

  • First, inform the insurance company immediately.
  • Lodge a FIR in case of an accident
  • Collect pictures and proofs to show the insurer
  • Submit the required documents like policy papers, FIR copy, RC copy, evidence etc.
  • Schedule a survey of the damage with then insurer
  • Finally, send the bike for repairs at any of the insurer’s network garage

Also Read: Why 3rd Party Bike Insurance is Important?

Which Add-ons are Available With Own Damage Bike Insurance Cover?

Here’s a list of add-ons that are available with Own Damage insurance for bikes:

  • Return to Invoice Cover Add-on– This add-on helps if the insured bike is stolen or lost. Here, you would get the price of the bike as mentioned in the invoice.
  • Zero Depreciation Cover Add-on – This add-on helps the policyholder in managing the financial burden of bearing the cost of depreciation.
  • Consumables Cover Add-on – Under this add-on cover, you get protection against consumable items in your bike such as bolt, screw, grease, and so on.
  • Roadside Assistance Add-on – Under this add-on, the insured gets assistance in case there is a breakdown in your bike on the road.

 

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FAQs on Standalone Own Damage Bike Insurance

What is the premium for a Standalone Own-Damage (OD) bike insurance policy?

The premium of Standalone Own-Damage (OD) bike insurance policy depends on different things like make and model of bike,  age of bike, NCB discount (if any), IDV of bike etc. 

How do I File a Claim for My Own-Damage Two-Wheeler Insurance?

To file a claim for your two-wheeler own-damage insurance policy below steps are required to be followed:
First step is to file an FIR at the nearest police station at the earliest, a copy of which needs to be submitted to the insurer. However, this is not required for non-fatal damage
Try to take images or videos of the scene clearly to have proof of the damage incurred and submit the documents needed.
Fill up the claim form and submit it along with the documents required to be submitted.
The insurance provider might send a surveyor to assess the damages.
Once the surveyor accesses and reports, the insurer will verify the process and approve the claim and you can proceed with the cashless claim facility or can get the damages reimbursed.

Is theft covered under a standalone own-damage two-wheeler insurance policy?

Yes, theft of your bike is covered under a standalone own-damage policy.

Is Own-Damage Insurance Mandatory for Two-Wheelers in India?

No, own-damage insurance is not mandatory for two-wheelers. Only third party insurance is compulsory. However, Own-Damage Insurance is recommended to have in India.

How Can Own-Damage Two-Wheeler Insurance be Renewed After Expiry?

If you miss renewing your own damage two-wheeler insurance on time and it expires, you still have a chance to renew it. This can be done during the grace period offered by the insurer. This is a 90 days' time period that an insured individual is allowed by the insurer to renew their bike insurance after the expiry date.

What is Better: Purchasing an Own-Damage Cover or Third Party Insurance?

Third party bike insurance policy is the obligatory cover that you need to ride your bike in India if you don't want to be fined by the cops on the road. However, the own-damage insurance offers coverage to your own bike in case of damage. These are not compulsory policies but are good to secure your two-wheeler against any kind of damage or loss, theft etc. Thus, it is good to have an own-damage cover together with your third party insurance.

Why Does the Premium Amount of My Two-Wheeler Become Lower With Time?

Since the premium of your bike is determined by its IDV, which takes into account the depreciation rate of your bike. So, as your bike becomes older, the IDV goes down. This situation affects claims as well as premiums. So, when your bike gets older, you get less compensation and pay less premium as well.

What are the eligibility criteria to buy Own Damage insurance?

If you already have a valid third-party insurance policy for your two-wheeler, you can buy a standalone damage policy easily without following any eligibility criteria.

What are the other types of Bike insurance policies that are available in India?

Along with third-party and standalone own damage bike insurance, a third one is available called comprehensive bike insurance that you can avail of for total bike coverage.

Does Own Damage insurance cover also include Personal Accident cover?

As per the latest regulations, personal accident cover is made compulsory to buy for your vehicle. So, you can buy this cover with your Own Damage insurance policy or separately. However, it is better to check if this cover is already included with your Third-Party cover.

Jun 27, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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