Taking your bike out for a long ride or for routine traveling might seem like an easy task, but it comes with lots of additional costs. Maintenance and servicing are the two main expenses that we worry about when it comes to vehicles.
But have you ever considered securing your 2-wheeler against man-made or natural disasters? Own damage insurance protects you against these damages.
In this article, we’ll describe what is own damage insurance and also explain the process to claim insurance for own damage.
So, let’s jump right in!
What is Own Damage Bike Insurance?
Own damage bike insurance for the bike- is an important type of insurance that secures your vehicle against damage caused by natural disasters, riots, or accidents.
An insurance plan covering damage to one’s own vehicle came into existence in September 2019 after its purchase was approved by the Insurance Regulatory and Development Authority of India (IRDAI).
Accident-related repairs to your insured vehicle are covered by your insurance policy. Third-party insurance only covers third-party liabilities that result in death, injury, or property damage to third parties.
Note that in the case of standard insurance plans, if your bike gets damaged, you must not expect the insurer to cover the repair expenses. But with the own-damage insurance cover, you can claim for the damage due to any accident or similar event.
4 Main Factors That Might Affect the Insurance Premium:
- A bike’s cc determines the speed of the vehicle and, therefore, the risk it presents. Your own damage premium would increase with your bike’s cc and vice versa.
- Your own damage premium for your bike insurance would be greatly influenced by your own damage value.
- If your bike is of low cost, then the premium also differs based on that. It will be low for a low-cost bike and high for an expensive bike.
- The age of the bike is a determining factor when estimating the premium that needs to be given. It is because when you purchase your own damage insurance plan, the value of the commodity in the vehicle market is directly influenced by the bike’s age.
How does Own Damage Insurance work?
A simple example will help you better understand own-damage bike insurance.
Consider the case where you just bought a new two-wheeler. Furthermore, you have also purchased a third-party bike insurance policy through the same insurer, which covers all third-party and legal liabilities.
During the monsoons, your bike suffered some waterlogging and then a minor accident over the past year. Third-party insurance plans wouldn’t cover its repairs, so you had to pay for them yourself.
How to claim insurance for your own damage?
It’s a simple and swift procedure that takes hardly a few days to complete. Approach the steps in the right way and you won’t have to worry about any issues. Here’s a step-wise explanation to claim own-damage insurance:
Step 1: The first and foremost thing to do is– Inform the insurer about the claim.
Step 2: Once your claim is registered by mail or call, you should ask for the official claim form of the insurance company.
Step 3: Provide evidence along with certain documents in the form of pictures, that prove the damage caused to your vehicle. (This is part of the verification process)
Step 4: Fill out the claim form provided by the insurer.
Step 5: Submit the above form with the necessary documents as mentioned by the insurer.
Step 6: In case the repair is done from a garage of your network then you can file for a cashless claim. In the opposite case, you must pay expenses and claim for insurance later.
Step 7: Finally, the surveyor will examine the vehicle for damage.
Step 8: Estimated details are sent to the insurer.
Step 9: Once the claim form is received, along with the surveyor’s examination report, you will get compensated. The transaction might happen via your bank account, in case it’s a cashless claim.
Upon receiving the claim form and surveyor’s report, the insurance company will compensate the incurred money. In the case of a cashless claim, it will be settled directly or the amount will be reimbursed to the registered bank account.
Documents Required to For Filing a Claim:
An own damage claim requires the following documents:
- Policy copy of the vehicle’s insurance
- When a party involved in a theft or accidentally dies, a “police report” is filed with the nearest police station
- A vehicle’s registration certificate
- The driver’s driving license
- For reimbursement claims, bills are provided by the garage where the vehicle was repaired.
- Accident site photos
Does my claim cover everything and what does it not?
Things covered in a claim:
- Damage is caused by accidents, fire, explosion, collision, and natural calamities like floods, earthquakes, etc.
- Damage or loss due to theft
- Damage due to man-made calamities
Things not covered by a claim:
- Electrical breakdown
- Damage due to driving under alcohol consumption: Accidents that occur while under the influence of alcohol or any other type of intoxication will not be covered by Own Damage insurance.
- Damage due to nuclear war
- Loss due to the condition of the vehicle
- Damage due to negligence
- Driving with license
Benefits of Own Damage Insurance Cover:
Vehicle owners are no longer required to purchase a long-term, comprehensive car insurance plan that covers both third-party liabilities and own damage.
Instead, they can compare and purchase their own damage insurance policies online from various insurers based on their budget and desired benefits. This can be a more affordable and effective option for those who cannot afford to pay high premiums upfront or for those who do not want a comprehensive car insurance plan.
Additionally, standalone own-damage policies can be renewed annually, which can help reduce the financial burden on policyholders.
It can be challenging to choose the right insurance plan when there are many options with different coverages available. Own damage insurance covers damages or losses to your vehicle and is optional.
However, if you’ve already bought third-party car insurance, adding an Own Damage insurance cover can provide comprehensive coverage for your vehicle.