Close ILTakeCare Suggestion
IL TakeCare app – For all your insurance & wellness needs

Policy purchase, claims, renewal & more

 

Difference Between Own Damage & Third Party Insurance

Let’s dive in and demystify the world of our own damage and third-party insurance together.

  • 26 Jun 2023
  • 2 min read
  • 11567 views

If you’re wondering about the difference between own damage and third-party insurance, you’re at the right place. We’ll break down these insurance types in simpler terms so that you can easily understand them.

Whether you’re renewing your policy or exploring different coverage options for car insurance, you should take expert advice. Hence, without wasting time, let’s dive in and demystify the world of our own damage and third-party insurance together.

Own Damage vs Third-Party Insurance

Let’s understand the difference between own damage and third-party Insurance using the following table:

Point of Difference

Own Damage Insurance

Third-Party Insurance

Coverage

Own Damage Insurance provides coverage for damages to your insured vehicle. It includes accidents, thefts, natural calamities, and man-made disasters.

Third-Party Insurance covers the liabilities arising from damages to third-party vehicles, property, or bodily injuries caused by your insured vehicle.

Compulsion

Own Damage Insurance is not mandatory under Indian motor laws. However, purchasing comprehensive coverage for the protection of your vehicle is highly recommended.

Third-Party Insurance is mandatory by law to legally drive on Indian roads. It ensures you meet the minimum legal requirement for liability coverage towards third parties.

Exclusions

Own Damage Insurance primarily protects your vehicle and does not cover third-party liabilities.

Third-Party Insurance excludes the cost of damages sustained by your insured vehicle. It solely covers the liabilities of third parties involved in an accident.

 

 

Standalone Purchase

You cannot purchase Own Damage Insurance as a standalone policy. It can only be availed with a Third-Party Insurance policy or as part of a comprehensive car insurance plan.

You can purchase Third-Party Insurance separately, fulfilling the legal requirement for liability coverage towards third parties.

Customisation

Own Damage Insurance allows customisation by purchasing additional covers, commonly called add-ons. These add-ons enhance your policy's coverage, such as Nil Depreciation Cover, NCB Protect Cover, and more.

Third-Party Insurance, being a mandatory cover, does not offer customisation options or add-ons. It provides standardised coverage as per the legal requirements.

Validity

Own Damage Insurance typically has a validity of one year, requiring annual renewal. It ensures your vehicle remains protected against unforeseen damages throughout the policy period.

For new cars, a bundled Third-Party Insurance policy with a validity of three years is mandatory. It provides continuous coverage for legal liability towards third parties.

 

 

Also read:

  • Looking for tailored advice?

    Schedule a call with our insurance advisors

  • OR
  • Call us:

    1800 2666
Please enter valid name
Please enter a valid mobile number
Please select the Category

Subscribe to our newsletter

Understand insurance better by reading our helpful guides, articles, blogs and other information.

Please enter valid name
Please enter valid Email

Error message here