2 weeks ago
Own Damage Motor Insurance: Monsoon Cover and Add-ons Explained
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.
Third-party motor insurance is mandatory but only covers damage to others, not your own vehicle.
Own Damage (OD) cover protects against flood, rain, and other natural calamity damage to your vehicle.
A lower Insured Declared Value (IDV) reduces premium but also lowers the maximum payout.
Add-ons like Return to Invoice, Engine and Gearbox Protect, and Consumables Cover offer extra protection.
Claims can be rejected for driving without a valid licence, drunk driving, or racing.
- Who
- Vehicle owners in India considering motor insurance coverage.
- What
- Explains the importance of Own Damage motor insurance cover and useful add-ons during the monsoon season.
- Where
- India.
- When
- During the monsoon season.
- Why
- To help vehicle owners understand how to protect their own vehicles from flood and rain damage.
Cost-conscious approach
Protection-first approach
Buying OD cover
Cost-conscious approach
Many motorists avoid OD cover because it increases the upfront premium.
Protection-first approach
OD cover provides crucial financial protection when a vehicle is damaged by floods, heavy rain, and other natural calamities.
Choosing IDV level
Cost-conscious approach
Choosing a lower IDV can bring down the premium.
Protection-first approach
A lower IDV reduces the maximum amount payable if the vehicle is stolen or declared a total loss.
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




