What OD means in insurance?

Own Damage
Own Damage is an insurance cover that protects you against the loss and damage that occurred to your own vehicle like fire, theft, etc. OD policy compensates for damages like natural calamities, man-made calamities, due to accidents, theft or malicious acts.

What is TP and OD in insurance?

A motor insurance policy consists of two parts – own damage (OD) cover and third party (TP) liability cover. All car and bike owners should buy a car insurance or a two wheeler insurance for their vehicle’s safety.

What is OD only in car insurance?

What is Standalone OD Car Insurance? As the name suggests, standalone own-damage car insurance is a policy that specifically covers for your own car’s damages and losses. This includes damages and losses caused due to accidents and collisions, natural calamities, fires, and thefts.

How is OD premium calculated?

The premium for OD cover is calculated as a percentage of IDV as decided by the Indian Motor Tariff. Thus, formula to calculate OD premium amount is: Own Damage premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (eg. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)]

What is OD premium and TP premium?

Own damage premium: The own damage premium is the part of premium fixed as per the Insured Declared Value (IDV) of your vehicle. Third party premium: Third party premiums are fixed by the insurance regulator and depend on the volume or the cubic capacity of your vehicle.

What is standalone OD?

The presence of the OD section in your policy means it will cover the cost of repair of your car. Such a policy is also called a stand alone own damage(OD) policy. On the flip side, a policy without own damage part only covers what you owe to a third party and is called ‘third party liability insurance’.

What is IDV?

What is Insured Declared Value (IDV)? The term ‘IDV’ refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy.

Is it mandatory to have OD insurance?

No, an OD insurance for your car or bike isn’t mandatory but is recommended for protection for your own vehicle. As per the Motor Vehicle Act, the basic Third-Party Insurance is mandatory for all vehicles.

What is vehicle OD policy?

Own Damage Car insurance a.k.a. OD Insurance is a motor insurance policy that is intended to safeguard your car against unforeseen own damages. This policy offers car insurance coverage for own damages sustained by your car due to road accidents, fire, natural calamities, or any other mishap.

Is OD insurance mandatory?

✓ Is OD insurance mandatory by law? No, an OD insurance for your car or bike isn’t mandatory but is recommended for protection for your own vehicle. As per the Motor Vehicle Act, the basic Third-Party Insurance is mandatory for all vehicles.

What is OD premium?

Content1. ​​In car insurance, Own Damage (OD) Premium provides you Own Damage (OD) Cover. Own Damage (OD) simply means cover against damages to your own car. Reliance General explains OD premium and its benefits in this video. Click to know more about car insurance from Reliance General.