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Here’s how having an own-damage cover will help you

Previously, both old and new vehicles were required to purchase an own-damage car insurance policy policy along with a third-party insurance policy which was bundled together as a comprehensive insurance policy. From 1st September 2019, The Insurance Regulatory Development Authority of India (IRDAI) has made it flexible for the car owners to buy own-damage (OD) insurance and third-party insurance separately either from the same insurer or different insurers. This move made car owners consider OD insurance as an optional one. But, third-party insurance is still mandatory by law. To save costs, many car owners don’t buy OD insurance. Having OD insurance will protect you from bearing the huge repair cost arising out of a natural or man-made disaster.

Let’s first compare third party insurance with an own-damage or comprehensive insurance


Third-Party Cover

Own-Damage/Comprehensive Cover


Mandatory for all cars as per Motor Tariff 2002

It is optional but recommended


Only covers the injury/death of the third party

Covers the injury/death of the third party along with own-damage of the car


Not available

Available - Zero Depreciation, consumables cover, roadside assistance, transfer cost reimbursement, etc...

How an Own-Damage Cover Works:

Let’s give you an example, you had recently purchased a new car and within weeks due to torrential rains, your car gets submerged in floods. Imagine the repair cost or what if it is a total loss? feels scary right? In such situations, an OD cover will help you get out of trouble.

Own-Damage Cover Includes:

  • Damages due to accident
  • Vehicle theft
  • Loss due to fire, explosion, vandalism, riot
  • Damages due to natural calamities

Who Should Opt for an Own-Damage Cover:

If you have purchased only a third party cover from Cholamandalam car insurance or elsewhere you can now get a standalone own-damage cover to protect your car from man-made and natural disasters.

How Premium is Calculated:

Calculating the premium for own-damage insurance is slightly complicated when compared to third-party insurance. For third-party insurance, the premium is calculated based on the engine capacity. But for own-damage premium, insurance companies consider other factors such as:

  • Age of the vehicle and its Insured Declared Value (IDV)
  • Car owner’s age, occupation and location
  • Car’s make and model
  • Discounts and benefits which the car owner is eligible for
  • Add-on covers (if any)
  • Deductibles which the car owner voluntarily agrees for

Claim Value:

In the event of an own-damage claim, the amount you will receive as compensation will be a fair market value based on your IDV, deductibles, make and model of your car.

Now that you have realized the importance of having an own-damage cover, checkout Chola MS standalone own-damage car insurance and secure your car against all risks.

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