Earlier we had published the OEM-wise split of Petrol v/s Diesel sales –
Further to our OEM wise Fuel Split of sales; do find mentioned the detailed modelwise split here –
Know Everything About an Own Damage Bike Insurance Cover to Safeguard Your Finances Effectively!
In 2018, the Insurance Regulatory Development Authority of India (IRDAI) allowed insurance providers in India to make three types of insurance policies available to two-wheeler owners in India.
These are –
To add to this, IRDAI in September 2019 has allowed insurance providers to introduce an annual own damage policy for two and four-wheeler vehicles in the country. This policy is offered at the discretion of insurance providers.
What is Own Damage Bike Insurance?
Own damage insurance for bike is a standalone bike insurance policy that provides financial protection against damages and losses to your own bike.
Some of the instances covered under this insurance policy include damages due to accidents, theft, natural calamities, fire, etc.
This policy can be availed only by someone who has an existing third-party liability cover in place.
Thus, by availing own damage cover alongside your third-party liability cover, you can make sure your financial losses are minimal in the face of unfavourable circumstances.
How Does it Work?
Unlike third-party liability cover or comprehensive insurance cover, own damage cover solely protects the insured bike against damages and losses.
Previously, own damage cover could be purchased only as a part of comprehensive bike insurance policies. But, as per new rules, you have the flexibility to purchase OD cover separately from the other two standalone covers.
It works like any other insurance cover, where the policyholder has to pay a fixed premium amount to avail financial protection for their bikes.
This policy can also be further modified with add-on covers like –
Why was this Cover Implemented by the IRDA?
This cover was implemented separately by the IRDA because it allows you to avail protection against the damages to your own bike even if you already have an existing third-party liability cover in place.
You can understand the usefulness of the policy better with an example!
Let us assume that you have purchased a bike and an accompanying third-party liability cover, which insures your bike for the next three years. Sometime later, you realise that the liability only cover is not sufficient to provide you with 100% protection against liabilities involving your two-wheeler because it doesn’t protect your own vehicle.
Under this circumstance, the own damage cover can help to protect your bike against all types of damages incurred.
Can You Buy the Cover? Look at the Eligibility Criteria!
You can purchase the own damage cover if you comply with the following criteria –
After ascertaining that you comply with these factors, you can avail the Own Damage bike cover.
Advantages Available Under the OD Cover
The advantages from the OD cover can be illustrated in the table below –
|Accidents||The policy provides financial protection to your bike against damages due to accident, collision, etc.|
|Theft||Provides financial coverage if your bike is stolen.|
|Fire||Financially protects your bike against damages from a fire outbreak.|
|Natural calamity||Calamities like flood, storm, lightning, etc. can cause extensive damage to your bike. This insurance policy covers the damages incurred due to these.|
Since this cover can be availed with an existing third-party liability cover, it provides all-round protection for your bike, thus securing your finances more effectively.
How is the Premium Payment For this OD Cover Determined?
With third-party liability covers, the IRDA publishes fixed rates for the cover annually. These rates depend on the insured bike’s engine capacity, with no variable component.
But with the OD cover, the premium calculation is a tad bit more complicated. The quote offered by insurance companies depend on factors like –
Insurance providers offer the OD cover with these factors and the premium from the third-party liability cover in consideration.
Things to Remember About the Policy
So, without delay, get the OD cover and secure yourself against losses today!
PS: It is a sponsored post.