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The whole purpose of buying car insurance is to safeguard your car against all uncertainties. Accident is definitely one of the biggest uncertainties in this case, which has no time, no place. The damage caused is inevitable, sometimes to your own self or vehicle, while on other times to third-party persons or property. Basic motor insurance plans generally cover third-party liability, meaning any damage caused to the third-party vehicle, person, or property is covered by the insurance company. However, there is yet another feature in car insurance, namely own damage car insurance. Let us learn more about it in this blog.
As the name suggests, an own damage car insurance policy refers to a plan that provides cost coverage for any damage caused to the policyholder’s own vehicle. This may be attributed to man-made damage, such as the one caused during an accident between two cars, or natural calamity like earthquake, flood, and the like.
In any of the above events, sufficient damage may be caused to the vehicle of the insured. With the own damage insurance for a car, the repair cost for this damage is covered by the insurer for the policyholder.
In case of own damage to the policyholder’s car, the very first step is to report the incident and the subsequent damage to the insurance company at the earliest. In case the damage has been caused due to an accident, it is necessary to first file an FIR at the nearest police station and then inform the insurer immediately. Information to the car insurance company is important since you would need to file a claim with the insurer to cover the repair costs incurred on fixing the damaged vehicle. To make a claim with your insurer for own damage to your car, below are the steps to be followed:
In the above section, we learned all about how to claim car insurance for own damage. Now, while filing the claim, your insurer would require you to submit some relevant documents pertaining to the accident for which the claim is being made. Here is a list of all the documents that you would need to submit:
Own Damage Premium in car insurance refers to the premium amount that you pay towards the policy in return for insurance protection against damages to your own car. When you buy a car insurance plan from an insurance company, the latter would require you to pay a certain amount regularly towards the insurance policy. In return, the insurer would guarantee to cover costs related to repair of the vehicle in case of any damage caused to your own car. This amount is known as Own Damage premium.
This premium is generally decided by the insurer on the basis of the type of car, the city/state where it is used, and the age of the vehicle. Moreover, some other factors like the make of the car, the engine’s Cubic Capacity (CC), the car’s Declared Value, and the geographical boundary of the vehicle are all taken into consideration while determining the Own Damage premium for a two-wheeler or car.
The simple formula used for calculating the Own Damage premium is as follows:
Standalone Own Damage Premium – No Claim Bonus + Applicable Discounts + Cost of Premium of Add-On Cover Benefits = Cost of Premium for Own Damage Car Insurance.
Car insurance for own damage is highly helpful to the policyholder since it allows them to claim coverage for damage to the own car, unlike the base insurance policy which only covers third-party liabilities. To buy own damage car insurance or for more details on the same, visit PayBima online. The website also offers the best deals on car insurance policies from various leading insurers.
Also Read: What is Not Covered by Your Car Insurance Policy? | Process To Claim Car Insurance After an Accident in India | Car Insurance Claim Settlement Ratio 2022-23 of Best Car Insurance Companies in India
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
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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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