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Own Damage Motor Insurance: Monsoon Cover and Add-ons Explained

Own Damage Motor Insurance: Monsoon Cover and Add-ons Explained
Motor Insurance: Why Own Damage cover matters during monsoon and the add-ons you should know · livemint.com

When you own a car, the law says you must have insurance that pays for damage you cause to other people's cars or property.

But that insurance does not pay to fix your own car.

If your car gets damaged by heavy rain, floods, or a falling tree, you need a special part of insurance called Own Damage cover.

Many people skip this to save money, but it can save you a lot of trouble later.

The insurance company decides how much your car is worth, and that amount is called the Insured Declared Value.

If your car is badly damaged, the company may pay you that value instead of fixing it.

You can buy extra add-ons, like one that pays the original price of your car or one that protects the engine if water gets inside.

You should also tell your insurance company about any changes you make to your car, like adding a CNG kit.

If you drive without a licence or after drinking alcohol, your claim may be rejected.

Key facts

Mandatory cover
Third-party motor insurance
Own Damage cover
Protects own vehicle against natural calamities like floods and heavy rain
Insured Declared Value (IDV)
Insurer's assessed current market value of the vehicle
Constructive total loss threshold
Around 75% of IDV
Recommended add-ons
Return to Invoice, Engine and Gearbox Protect, Consumables Cover, Roadside Assistance
Common claim exclusions
Driving without valid licence, drunk driving, racing, normal wear and tear

Sources

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