Own Damage Cover in Two Wheeler Insurance - Explained

Own Damage Cover in a two-wheeler is an insurance plan that covers all the damages incurred by your two-wheeler due to accidents, natural calamities, man-made disasters, fire, theft as well as damage incurred in transit. The Regulatory and Development Authority of India (IRDAI) allowed its purchase in 2019. This policy gives your two-wheeler the best coverage for its damage. It is an affordable plan and becomes a very suitable option paired with a third-party plan which is mandatory for all two-wheelers according to Motor Tariff Act 2002. Before purchasing the plan it is important to be well aware of all its features and benefits. 

Important Features Of Own Damage Cover In Two-Wheeler Insurance Plan

This plan provides extensive coverage to your two-wheeler and has the following features - 

1. This plan provides extensive coverage to all the damages incurred by your two-wheeler due to natural calamities, man-made calamities, and also damages incurred due to any third party by an accident or mishap with the insured bike are also covered.

2. In comparison with the third-party plan, a higher premium is payable for the own damage insurance plan. 

3. Policyholders under this plan receive coverage for financial liability towards the insured vehicle only.

4. To make this policy more extensive and beneficial for policyholders, a variety of add-on covers can be included in the plan with minimal extra premium. 

Must Read: Roadside Assistance Add On Cover In Two-wheeler Insurance Explained

What All Is Not Covered Under Own-Damage Two-Wheeler Insurance?

Even though the own-damage policy covers most of the damages there are few terms and conditions applied. The following are the things that are not covered by an own-damage insurance plan -

1. Contributory Negligence - If the policyholder consciously contributes towards the damage of the two-wheeler despite being fully aware of the consequences, the two-wheeler does not get any insurance coverage.  

2. Contributory Negligence - The damage incurred by the two-wheeler over time, in the form of wear and tear is not covered under this policy. 

3. Third-Party Liability - The financial liability towards a third party is not covered in this insurance plan. It covers only the damages incurred by the vehicle of the policyholder.

Factors That Affect Own-Damage Two-Wheeler Insurance Premium

The following factors determine the premium for an own-damage two-wheeler insurance plan -

1. Insured Declared Value(IDV) - IDV is the primary factor that affects the premium in an own-damage insurance plan. The IDV of the two-wheelers is determined by its market value which is affected by the bike’s age. The table given below explains how the depreciation rate works:

2. No Claim Bonus(NCB) - A prior policyholder of an own-damage comprehensive plan can transfer their accumulated NCB for a discount on present own damage premium if they made no claims earlier.

3. Age of Two-Wheeler - The own-damage premium is higher for newer two-wheelers and vice versa.

4. Engine Capacity - The speed of the two-wheeler is determined by the two-wheeler’s CC, which corresponds to the risk associated with the vehicle. So, the own-damage premium is higher for high CC two-wheelers and vice versa. 

5. Add-ons - The policyholder can select add-ons for the own-damage plan which affects the own-damage premium. 

Also Read: How to Find the VIN, Chassis Number and Engine Number of Two Wheeler

Benefits Of Two-Wheeler Own Damage Insurance

The following are the benefits that one gets by purchasing an own-damage insurance plan for their two-wheeler-

1. Flexibility Of Tenure - The own-damage insurance policy is a 1-year commitment that is much more preferable for new two-wheeler owners combined with the third-party plan compared to the comprehensive plan that requires a longer time commitment.  

2. Economical - Own damage insurance plan combined with third-party insurance plan provides affordable and highly beneficial coverage to your two-wheeler. It is a more economical option as compared to a comprehensive insurance plan. The existence of multiple insurance providers also helps in making a well-studied decision by comparing all the options. 

3. Available Options - A person can opt from different service providers for an own-damage insurance plan and third-party insurance plan individually. 

4. Add-ons - The own-damage insurance plan can be made more extensive and beneficial for all the two-wheeler owners with the help of add-on covers like Zero Depreciation Cover, Consumable Covers, etc.

Add-Ons Available With Own Damage Two-Wheeler Insurance Cover

1. Zero Depreciation Cover- The policyholder with zero depreciation cover is provided assistance in mitigating the burden of the depreciation cost which is incurred by the two-wheeler, claiming a much bigger amount. Most insurance providers allow you a maximum of two zero depreciation claims. However, insurance companies like IFFCO Tokio General insurance firm, New India Assurance Company, and Royal Sundaram General insurance firm allow the policyholder to form unlimited nil depreciation claims. 

2. Roadside Assistance- Roadside Assistance covers two-wheeler insurance assists services that involve towing services, changing flat tires, repair service on-site, fuel delivery, an event of loss of keys, etc.

3. Consumables Cover- Bike insurance consumable cover offers coverage for the consumable items in a two-wheeler like grease, oil filter, screw, etc.

4. Return to Invoice Cover- A policyholder can get a complete invoice price for their insured two-wheeler in case of theft and damage beyond repair. 

Conclusion 

The own-Damage plan is an economical and beneficial plan for all two-wheeler owners. It provides extensive coverage for your two-wheeler. With proper knowledge and information, it becomes easy to select the best policy for your two-wheeler.

Also Read:

Should I Purchase Two-Wheeler Insurance Online?

Top Ways to Save Money on Bike Insurance Renewal

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.