by
Nitin Vishwakarma
| Feb 07, 2025
Updated on - 02 Jan 2026
In India, every car owner must have third-party insurance by law, but this plan only covers the damage you may cause to another person’s vehicle, property or injuries. Since it offers no protection for your own car, a major part of your financial risk still remains. This is why many car owners choose to add own damage (OD) insurance.
Own damage insurance bridges this gap by covering your vehicle against accidents, fire, theft, natural disasters and vandalism. With this protection, you can manage repair or replacement costs more easily and avoid unexpected expenses. This blog explains how own damage insurance works and how it differs from comprehensive car insurance.
What does a standalone own damage policy mean?
A standalone own damage plan is a separate car insurance cover that protects only your vehicle against unexpected damage or loss. You buy it in addition to a mandatory third-party insurance plan, but it works independently by offering coverage for any damages caused to your car by natural or manmade causes.
Having a standalone own damage plan means the insurance company will cover the expenses incurred by natural disasters like floods, storms, earthquakes and others. It also includes damages caused due to vandalism, accidents, riots, fire, theft, etc.
There are various add-ons available for policyholders to choose from. It enhances your overall insurance coverage and offers added protection to the insured car. Some add-ons you can opt for along with a standalone own damage insurance plan include:
- Zero Depreciation Add-On Cover
- Consumables Add-On Cover
- Engine Protection Add-On Cover
- Key and Lock Protect Add-On Cover
- Roadside Assistance Add-On Cover
- Return to Invoice Add-On Cover
Benefits of own damage insurance policy
Buying an own damage insurance plan for your car comes with numerous benefits. These include:
- Protection from repair cost inflation: Garages and spare parts become more expensive each year, and OD insurance helps you manage these rising costs.
- Coverage even when no other vehicle is involved: Damage from self-accidents, falling objects or natural events is covered, which a third-party insurance plan cannot offer.
- Support in case of total loss: If your car is beyond repair, the insurer pays the insured value, reducing your financial burden.
- Flexibility to choose your insurer: You can buy own damage cover from a different insurer than your third-party plan, giving you more options and better pricing.
- Option to add useful add-ons: You can enhance your cover with add-ons like zero depreciation, roadside assistance, engine protection or consumables cover.
- Reduces out-of-pocket expenses after minor mishaps: Even small accidents can result in costly repairs. OD cover reduces these unexpected expenses.
Note: Coverage, limits and add-on options may vary between insurers, so reviewing the policy terms carefully before buying an own damage plan ensures you get protection that matches your needs.
Coverage offered under own damage insurance
Own damage insurance protects your car from a wide range of risks, even if the accident or incident is not caused by another vehicle. It covers damage due to fire, explosion, self-ignition or lightning. It also protects your car if it is stolen or damaged during burglary or housebreaking. Damage caused by riots, strikes, malicious acts or terrorist activities is included as well.
Your car is covered against natural disasters such as earthquakes, floods, cyclones, hailstorms, storms and landslides. Accidental damage from external means, such as collisions or impact, is also part of the cover. The plan also extends protection when your vehicle is being transported by road, rail, air or inland waterways.
If your car is completely destroyed or stolen, the insurer compensates you as per the insured value. However, the exact coverage, exclusions and claim conditions may vary across insurers. Always review the policy wording carefully to understand what is included and what requires add-on covers.
Difference between own damage and comprehensive insurance
The table below explains the difference between own damage and comprehensive insurance:
|
Feature
|
Own damage insurance
|
Comprehensive insurance
|
|
What it covers
|
Damage to your own car only
|
Damage to your car and damage to others
|
|
Third-party coverage
|
Not included
|
Included
|
|
Theft protection
|
Yes, covers theft of your car
|
Yes, covers theft and third-party loss
|
|
Natural disasters
|
Covers floods, fire, storms
|
Covers all natural disasters and third-party damage
|
|
Premium cost
|
Lower
|
Higher because it offers more coverage
|
|
Best for
|
People with third-party cover who want extra protection for their car
|
People who want full protection in one plan
|
How to buy or renew an own damage car insurance policy online
Buying or renewing your own damage car insurance online is simple and quick. First, visit the insurer’s website and enter your car details. You can then check different plans, compare prices and see what each policy covers. Once you choose a plan, fill in your information and upload any required documents. After that, make the payment online, and your policy will be sent to your email. This easy process helps you save time and avoid long paperwork.
Why you should add own damage cover to your motor insurance policy
Accidents and unexpected incidents can happen at any time, and repair or replacement costs can be substantial. Own damage cover protects you from these financial burdens. By adding this cover to your car insurance policy, you ensure that your car is protected against accidents, theft, fire, natural disasters and other unforeseen events. This not only reduces out-of-pocket expenses but also gives you peace of mind, allowing you to drive with greater confidence.
Tips to maximise your own damage insurance benefits
Here are some tips to help you get the most benefit from your own damage insurance:
- Always report an accident to your insurer as soon as possible.
- Take clear photos of the damage before moving the vehicle.
- Keep all repair bills and documents safely.
- Choose a network garage to get cashless repairs.
- Do not hide any details about how the damage happened.
- Check your policy terms so you know what is covered.
- Renew your policy on time to avoid losing protection.
Conclusion
Understanding own damage insurance is necessary because it helps you protect your car from accidents, fire, theft and other unexpected events. This cover gives you financial support when your vehicle gets damaged, so you do not have to pay large repair bills on your own. It also gives security, as you know, help is available when something goes wrong.
If you want to know about different plans apart from own damage insurance, you can fill out the form on this page, and we will assist you with the insurance plans that are best for your situation.
FAQs
1. What is own damage insurance?
Own damage insurance covers the cost of repairing your car if it is damaged due to an accident, fire, theft or natural disaster.
2. Do I need own damage insurance?
It helps protect your car from unexpected damage. Without it, you must pay repair costs on your own.
3. Is own damage insurance included in third-party insurance?
Third-party insurance covers only third-party liability. You must buy own damage cover separately for your car.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.