Own Damage motor insurance essential during monsoon, say experts

Livemint.com reports that while third-party motor insurance is mandatory in India, it only covers damage caused to others. An Own Damage (OD) policy is required to cover damage to one's own vehicle from floods, falling objects, and waterlogging. Experts advise vehicle owners to check the Insured Declared Value (IDV), as a lower IDV reduces the premium but also cuts the maximum payout if the vehicle is stolen or declared a total loss.

Useful add-ons include Return to Invoice, which can pay the original invoice value instead of the depreciated IDV, and Engine and Gearbox Protect, which covers repairs from water ingress. Consumables Cover and Roadside Assistance are also recommended for monsoon. Electric vehicle owners should consider specialised covers for expensive battery systems.

Common claim rejections arise from driving without a valid licence, drunk driving, or mechanical breakdown from wear and tear. Policyholders must disclose modifications such as CNG kits or alloy wheels. Reporting timelines vary by policy, but insurers typically expect notification within 24 to 48 hours of an incident.