Standalone Own Damage Insurance for Cars

Standalone Own Damage Insurance for Cars

In the past, car owners in India had to choose between a basic Third-Party policy or a bundled Comprehensive plan. However, with the IRDAI’s introduction of Standalone Own Damage (SAOD) insurance, you now have the flexibility to protect your own vehicle even if you bought your mandatory Third-Party cover separately or for a longer tenure.

What is Standalone Own Damage (OD) Car Insurance?

Standalone Own Damage insurance is a specific type of car insurance that covers loss or damage to your own vehicle. While Third-Party insurance is legally mandatory but only covers damages to others, an SAOD policy ensures that you are not left with heavy repair bills after an accident, theft, or natural disaster.

How Does a Standalone Own Damage Policy Work?

An SAOD insurance policy works alongside your existing Third-Party cover. To purchase this, you must have an active Third-Party policy. It is particularly useful for car owners who:

• Purchased a new car after September 2018 with a mandatory 3-year Third-Party cover.
• Want to keep their Third-Party cover with one insurer but seek better own damage car insurance features or prices from another.

What Does Standalone Own Damage Car Insurance Cover?

Understanding the SAOD portion of insurance is critical to knowing when you can file a claim.

Inclusions (What is Covered):

• Accidental Damage: Costs for repairs due to collisions or external impacts.
• Theft: Compensation up to the IDV (Insured Declared Value) if your car is stolen.
• Natural Calamities: Damage from floods, earthquakes, cyclones, and landslides.
• Man-Made Disasters: Damage due to riots, strikes, or malicious acts.
• Fire & Explosion: Damage caused by self-ignition, lightning, or explosions.

Exclusions (What is Not Covered):

• Third-Party Liability: This must be covered by your separate TP policy.
• Driving Without a License: Claims are rejected if the driver is unlicensed.
• Drunk Driving: Accidents under the influence of alcohol or drugs.
• Consequential Loss: Damage that happens as a result of an initial event (e.g., engine damage due to driving through a flood).
• Mechanical/Electrical Breakdown: Normal wear and tear or engine failure not caused by an accident.

Key Benefits of Standalone Own Damage Insurance

• Flexibility: You are not locked into one insurer for all your needs.
• Cost-Effective: Own-damage car insurance is often more competitive when bought standalone.
• Customisation: You can add specific riders to a standalone OD policy that might not be available in basic bundles.
• No Claim Bonus (NCB): You can enjoy significant discounts on your OD renewal premium for every claim-free year.

Why Buy Standalone Own Damage Car Insurance from Jio Insurance?

Buying SAOD insurance through Jio Insurance offers a digital-first, hassle-free experience:

• Instant Quotes: Compare the own damage car insurance price from top insurers in seconds.
• Paperless Process: No physical documents are required for issuance.
• Transparent IDV Selection: Choose the market value (IDV) that best fits your needs.
• 24/7 Support: Assistance whenever you need to understand what is od in insurance or how to renew.

Standalone Own Damage Policy Add-ons and Riders

To enhance your saod policy, you can choose from various add-ons:

• Zero Depreciation: Get the full claim amount without deductions for the car's age.
• Engine Protection: Covers damage to the engine due to water ingression or oil leakage.
• Roadside Assistance: Help with towing, flat tires, or emergency fuel.
• Consumables Cover: Pays for nuts, bolts, engine oil, and grease during repairs.
• Return to Invoice (RTI): In case of theft, get back the original invoice value of the car.

Factors That Affect Standalone Own Damage Insurance Premium

Several factors determine your car od insurance premium:

• IDV (Insured Declared Value): Higher market value leads to higher premiums.
• Age of the Car: Older cars have lower premiums but higher depreciation.
• Cubic Capacity (CC): High-performance engines usually cost more to insure.
• Geographical Location: Metro cities (Zone A) generally have higher rates.
• No Claim Bonus (NCB): Accumulated discounts can reduce your premium by up to 50%.

How to Calculate Standalone Own Damage Car Insurance Premium

The basic formula for SAOD insurance is:

Premium = (Insured Declared Value × Premium Rate) + (Cost of Add-ons) – (No Claim Bonus Discount)

You can use the Jio Insurance calculator to enter your car's make, model, and year to get an instant quote.

Tips to Reduce Your Own Damage Car Insurance Premium

• Increase Voluntary Deductible: Agreeing to pay a small part of the claim yourself lowers the premium.
• Install Anti-Theft Devices: ARAI-approved devices can fetch you an od discount.
• Claim Your NCB: Never forget to transfer your No Claim Bonus from your old policy.
• Renew on Time: Avoid the od expiry date lapse to keep your discounts active.

Who Should Buy Standalone Own Damage Car Insurance?

You should buy a standalone own damage policy if:

• You have a long-term (3-year) Third-Party policy and want to add protection for your own car.
• You want to switch your od cover to a different insurer without affecting your TP policy.
• You own a new vehicle and want high-quality protection with specific riders.