For thrill lovers and speed enthusiasts, bikes are more than just transportation; they’re a way of life. Therefore, keeping your ride and yourself protected financially and legally is crucial. While third-party liability insurance is a legal requirement in India, including an own-damage (OD) bike insurance further safeguards your bike.

Let’s discuss why having an Own Damage cover is essential.

What is Own Damage Bike Insurance?

Own-damage bike insurance is a policy that ensures your bike is protected in case of damage due to various causes. It transcends third-party insurance, which only protects people and property of others involved in an accident.

OD insurance provides coverage against losses incurred if your bike is damaged through accidents, natural calamities, or artificial cases. To sum up, it saves your bike from having a backlash of an unexpected hefty bill for repair.

Is Own Damage Insurance Different from Third-Party Insurance?

Yes, Own Damage insurance is very different from third-party insurance. While third-party insurance is compulsory and includes only the damages to other parties, Own Damage insurance is for your bike exclusively. The benefits of this cover are:

• Protection against financial loss from damage to your bike.
• Coverage for accidents, fire, theft, or natural calamities.
• Flexibility to combine it with a third-party cover for comprehensive protection.

Why is OD Bike Insurance Necessary?

1.   Accidental Damage Coverage

Accidents are unpredictable, no matter how careful you are on the road. Own Damage insurance protects against costs connected with repairs or replacement of the vehicle in the case of an accident. This saves you from losing significant amounts of money at certain unexpected events.

2.   Protection Against Natural Calamities

India frequently experiences natural calamities like floods, earthquakes, and storms. Your bike is prone to such random misfortunes. Own-damage insurance is provided to recover the repair expenses for such calamities, offering a financial cushion in the post-disaster period.

3.   Protection Against Man-Made Disasters

Your bike can also be damaged by riots, strikes, or vandalism. Own-damage insurance also covers these artificial damages, preparing you financially for such incidences.

4.   Theft Protection

Another concern for bike owners is theft. If your bike is stolen, Own-Damage insurance compensates you for the loss. This can be a significant financial relief, especially in urban areas where bike theft is more common.

Comprehensive vs. Standalone Own Damage Insurance

Many bike owners need clarification on comprehensive and standalone Damage insurance. Here’s how they differ:

 

Comprehensive Insurance	Standalone Own Damage Insurance
Combines third-party liability and owner damage cover	It only covers damages to your bike
It gives complete protection, covering third-party liabilities and damages to your bike	It is beneficial if you already have third-party insurance and need protection for your bike

 

Critical Benefits of Own Damage Bike Insurance

1.   Financial Security

A damaged bike may require repairs, which can be very expensive, especially if the situation or the crash is severe. Own-damage insurance primarily focuses on costs related to the repair to shield your wallet from significant expenses.

2.   Flexibility

If you already have insurance with a third party, you can select an individual OD policy. This flexibility varies depending on your needs.

3.   Peace of Mind

Owning a bike comes with the risk of damage or theft. Own Damage insurance is perfect for riding a bike – you won’t be bothered by any other expenses that could jeopardise your safety.

4.   Add-On Covers

Most insurance companies allow you to enhance your OD policy with add-ons. These can again consist of zero depreciation, engine protection, and roadside assistance. They offer extra coverage that you might require.

Exclusions in Own Damage Insurance

While own damage insurance offers robust protection, it doesn’t cover everything. One must be aware of the exceptions such as:

1.   Regular Wear and Tear

Your insurance coverage does not include regular wear and tear maintenance for your bike, such as service and parts exchanges.

2.   Drunk Driving

If you are involved in an accident while under the influence of alcohol or drugs, any loss to your bike will not be compensated under Own Damage.

3.   Invalid Licence

The insurance company will not cover the expenses and damages incurred if the rider does not have a valid driving licence at the time of the accident.

Factors Affecting Premium for Own Damage Insurance

The premium for a bike insurance policy is calculated based on several factors:

1.   Bike’s Age

The premiums of older bikes are usually lower mainly because bikes of such age have a lower market value. Still, in case of an accident, the compensation offered is also less.

2.   Bike’s Model and Engine Capacity

Expensive bikes or bikes with large engine sizes have higher premiums to be paid because replacement and repair costs are relatively high.

3.   No-Claim Bonus (NCB)

If you have yet to make any claims in the policy year, there is a No-Claim Bonus, which greatly reduces the premium.

4.   Add-On Covers

If you decide to make more than one add-on cover, know they will increase your premium rates. However, these add-ons offer improved protection.

Recent Updates on OD Bike Insurance in India

The government of India has brought about amendments in the last few years to enhance the availability and affordability of bike insurance. Some of the recent developments in Own Damage bike insurance include:

1.   Long-Term Policies

The introduction of long-term Own Damage policies allows you to buy insurance for 2-3 years at a time, saving you from the hassle of yearly renewals and helping you lock in premiums.

2.   Increased Online Options

Many insurance companies now offer Own Damage policies online. This allows you to compare prices and coverage, making it easier to find the right policy.

3.   Add-On Customization

Companies now provide more customisation options for OD policies, allowing you to add or remove features like zero depreciation, engine cover, and consumables cover according to your needs.

While third-party insurance is mandatory, Own Damage insurance cover protects you financially. It ensures you aren’t burdened with repair costs after an accident, theft, or natural disaster.

With its numerous benefits and recent improvements in the Indian insurance market, getting Own Damage insurance for your bike would be a smart move. It provides financial security, peace of mind, and the flexibility to choose the coverage you need.

So, if you haven’t already, consider adding or upgrading to an Own Damage policy today.

 

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