Standalone OD Policy
In 2026, a Standalone Own Damage (OD) Policy is a specialized motor insurance plan in India that exclusively covers damages to your own vehicle. Introduced by the IRDAI in September 2019, it allows owners to separate their vehicle’s protection from the mandatory third-party liability cover.
Core Concept and Requirement
Standalone OD Policy
Protect your own vehicle against accidental damage, theft, fire, and natural calamities while maintaining flexibility with your Third-Party insurance policy.
Optional but Recommended
Unlike third-party insurance, an OD policy is not legally mandatory, but you cannot legally drive on Indian roads with only an OD policy.
Prerequisite
You can only purchase this policy if you already have an active Third-Party (TP) Liability policy. This is particularly useful for new vehicle owners who are mandated to buy long-term (3 or 5-year) TP covers but may want to renew their OD cover annually with different insurers.
Key Coverage (Inclusions)
The policy compensates for loss or damage to your vehicle caused by:
Own Damage Protection
Standalone Own Damage Insurance provides financial protection against accidental damage, theft, fire, natural calamities, and other covered risks affecting your insured vehicle.
Accidents
Damage from collisions, overturning, or accidental external means.
Natural Calamities
Floods, earthquakes, cyclones, landslides, and lightning.
Man-made Disasters
Theft, burglary, riots, strikes, vandalism, and terrorist activities.
Fire & Explosion
Damage due to self-ignition or fire.
Transit
Protection while the vehicle is being transported by road, rail, air, or inland waterways.
Common Exclusions
The policy typically does not cover:
Know What's Not Covered
Understanding policy exclusions helps you avoid unexpected claim rejections and ensures you choose suitable add-ons for broader protection.
Third-Party Liability
Any injury or damage caused to others.
Negligent Driving
Accidents while driving under the influence of alcohol/drugs or without a valid license.
General Wear and Tear
Mechanical or electrical breakdowns and gradual deterioration.
Consequential Loss
Damage resulting from attempting to drive after an accident (e.g., engine seizure).
Illegal Use
Racing, speed testing, or using a private vehicle for commercial purposes.
Premium and Valuation (IDV)
Premium Calculation
The premium for a Standalone Own Damage Policy depends on your vehicle's Insured Declared Value (IDV), specifications, location, and claim history, helping determine both coverage and pricing.
IDV (Insured Declared Value)
This is the maximum sum insured, based on the manufacturer's listed selling price minus age-based depreciation. If the vehicle is stolen or a total loss, you receive the full IDV.
Factors Affecting Premium
Vehicle age, model/make, engine capacity (CC), and geographical location (Zone A vs. Zone B).
No Claim Bonus (NCB)
You can earn discounts on your OD premium (up to 50%) for every claim-free year.
Popular Add-Ons (2026)
You can enhance this policy with additional riders:
Upgrade Your Protection
Add-on covers provide enhanced financial security by protecting your vehicle against situations that are not fully covered under a standard Standalone Own Damage Policy.
Zero Depreciation
Also called "Bumper-to-Bumper," it covers the full cost of replaced parts without deducting for depreciation.
Engine Protect
Covers repair costs for damage due to water ingression (common in floods) or oil leakage.
Return to Invoice (RTI)
Pays the original purchase price (including taxes) if the car is stolen or totaled.
Roadside Assistance
Emergency services like towing, fuel delivery, and flat tire changes.