Own Damage Insurance For Bike/Two-wheeler

by SMCIB on Thursday, 08 February 2024

Own Damage Insurance For Bike/Two-wheeler

Embarking on the open road, the thrill of the wind against your face and your trusty two-wheeler with you – it's a symphony of freedom and adventure. Amidst this exhilarating journey, bike insurance emerges as a silent guardian, offering a shield against the unpredictable twists and turns of life. It plays a critical role in providing financial protection for your two-wheeler. Among the various components of bike insurance, Own Damage (OD) coverage stands out as a vital element that safeguards your vehicle from a range of risks. This coverage, distinct from the mandatory third-party liability policy, offers comprehensive protection for you against damages arising from accidents, natural disasters, theft, vandalism, and other unforeseen incidents.

This article delves into the intricacies of own damage bike insurance, exploring its coverage, benefits, add-ons, and how it differs from comprehensive bike insurance.

What is Own Damage Coverage in Bike Insurance?

Own damage bike insurance, also known as own damage insurance for bikes, provides financial protection in the event of damage to your insured two-wheeler. Whether the damage arises from accidents, natural disasters, vandalism, or other incidents, the own damage bike insurance plan steps in to cover the losses, subject to the policy terms and conditions.

It's essential to note that this coverage is distinct from the mandatory third-party liability policy, which doesn't extend protection for damages to your own two-wheeler.

How Does Own Damage Bike Insurance Work?

Own damage coverage in bike insurance serves as a safeguard for your own vehicle, shielding it from a range of perils. Here's a concise breakdown of how it operates -

  • Scope Of Coverage
    Own damage cover provides protection for your bike in the event of damages arising from accidents, collisions, natural calamities (like floods or earthquakes), fires, theft, vandalism, and other unforeseen incidents. This component is optional and can be added to your basic third-party liability insurance for a more comprehensive protection package.
  • Policy Premium
    The premium for own damage cover is determined by several factors, including the make and model of your bike, its age, your geographical location, and any extra coverage selections you make. Usually paid on an annual basis, the premium requires renewal to ensure the continuity of coverage for your bike.
  • Claim
    If your bike suffers damage in an accident, you can avail coverage for the expenses related to repairing it.

Why is Own Damage Bike Insurance Coverage Useful?

Own damage bike insurance proves invaluable when your insured vehicle faces damages from accidents, natural disasters, theft, etc. This coverage ensures financial support for repairs or replacements in situations where your two-wheeler incurs damage. Notably, this feature is absent in compulsory third-party insurance, which solely addresses liabilities involving third parties.

Features of Own Damage Cover in Bike Insurance

The Own Damage insurance for bikes encompasses several key features that make it a crucial investment -

  • Financial Protection
    Own damage insurance for bikes offers financial support for repairing the insured two-wheelers in the event of damage caused by accidents, natural disasters, theft, and other unforeseen circumstances.
  • Offers Add-ons
    When purchasing own damage insurance for bikes, you have the option to choose add-ons that can further augment the coverage provided.
  • Customising Options
    You have the flexibility to tailor the coverage according to your preferences. For example, you can adjust the Insured Declared Value (IDV) and select add-ons that align with your specific needs and requirements.

Own Damage Cover - Inclusions

Here’s what is covered under the own damage insurance –

  • Accidental Damage Coverage
    If your two-wheeler sustains damage in an accident, own damage bike insurance ensures peace of mind by covering the expenses for repairing or replacing bike parts affected by the incident.
  • Natural Calamities
    If your motorcycle incurs damage from events like floods, earthquakes, cyclones, and more, the own damage insurance plan steps in to provide coverage for the resulting damages to your bike.
  • Man-Made Calamities
    The Own Damage (OD) plan safeguards your bike against damages resulting from man-made calamities, encompassing incidents like riots, vandalism, terror attacks, strikes, etc.
  • Fire & Explosion
    Should your vehicle suffer damage due to fire or explosions, resulting in potential financial loss, the own damage insurance plan steps in to cover and mitigate the associated damages.
  • Theft/Malicious Acts
    Theft of your two-wheeler can be a cause for concern; however, own damage Insurance provides assurance. You can rely on the insurer, as this plan is designed to cover losses stemming from theft, offering a dependable solution for such situations.
  • Total Loss
    If the damages to your vehicle are deemed beyond repair, own damage insurance steps in to provide compensation for such losses, subject to the specified terms and conditions.

Own Damage Cover- Exclusions

Here’s what is not covered by the own damage insurance for bikes -

  • Third-Party Liabilities
    The standalone own damage (OD) policy for bikes explicitly excludes coverage for third-party liabilities, encompassing injuries, death, or damages to their property.
  • Driving Without A Driving Licence
    Operating a vehicle in the absence of a valid Driving Licence (DL) is against the law in India. It's essential to note that the Own Damage (OD) Plan explicitly excludes coverage for any damages to your vehicle incurred during such circumstances.
  • Intoxication
    Damages incurred to your bike while riding under the influence of alcohol or any other intoxicants are not covered under the plan.
  • Mechanical/Electrical Breakdown
    Damages resulting from mechanical or electrical failure are not covered under the own damage insurance plan.
  • Consequential Damages
    Standalone own damage policy for bikes does not provide coverage for subsequent damages or losses arising from accidents, fire, etc.
  • Wear & Tear
    Over time, wear and tear lead to the depreciation of your two-wheeler. It's important to note that own damage bike insurance does not provide coverage for losses attributed to this natural depreciation.
  • Usage For Other Purposes
    Damages incurred while using the vehicle for purposes not explicitly mentioned in the policy will not be covered.
  • Outside Policy Terms and Conditions
    Damages or losses to your bike that fall outside the scope of your policy's terms and conditions are not covered under the plan.
  • Geographical Limitations
    Damages or losses to your bike occurring outside the geographical limits defined in the policy coverage are not covered under the own damage bike insurance plan.

Comparison: Own Damage Bike Insurance Vs Comprehensive Bike Insurance

The primary difference between own damage bike insurance and comprehensive bike insurance lies in the scope of coverage they offer. Own damage insurance safeguards the insured vehicle from damages, losses, theft, etc. but excludes coverage for third-party liabilities.

Conversely, a comprehensive plan integrates both own damage and third-party liability insurance. This means it not only protects your vehicle against damages, loss, or theft but also extends coverage to third-party liabilities, offering a more inclusive and holistic insurance solution.


Comprehensive Bike Insurance

Own Damage Bike Insurance


A comprehensive insurance plan for a bike serves as an all-encompassing coverage option. It goes beyond protecting your bike from damages, loss, and theft also including third-party liability coverage.

Own Damage (OD) insurance is specifically designed to cover your vehicle against a range of risks, including damages, loss, theft, and other perils. However, it is important to note that it does not extend coverage to third-party liabilities.


The premium is comparatively higher than standalone own damage insurance.

The premium is less compared to comprehensive insurance.

Third-Party Injury/Death

It provides protection against injuries or fatalities to third parties.

It lacks coverage for third-party injuries or deaths.

Third-party Property Damage

It provides financial support in the event that your motorcycle causes damage to the property of a third party.

Own damage insurance does not include coverage for third-party property damage.


How is The Own Damage Premium Calculated?

The premium for standalone own damage coverage in a bike insurance policy is determined by taking into account several factors. Although the specific calculation method may vary slightly among insurance providers, the following are common factors that are typically considered -

  • Insured Declared Value (IDV)
    The Insured Declared Value (IDV) is the maximum amount an insurance company will compensate in the event of a total loss or theft of your bike. This value is computed by considering the manufacturer's listed selling price and factoring in depreciation.
    A higher IDV corresponds to a higher premium, as it signifies an increased liability for the insurance company in case of a claim.
  • Cubic Capacity (CC) Of The Bike
    The premium for bike insurance is influenced by the engine capacity, measured in cubic capacity (CC). Motorcycles with higher CC usually attract a higher premium, as they are perceived to have more powerful engines, potentially leading to higher repair costs in the event of a claim.
  • Age Of The Bike
    When it comes to determining the premium for Own Damage (OD) bike insurance, the age of your bike is a key factor that insurers carefully consider. If your bike is brand new, you may face a higher premium. For older bikes, the own damage premium may be lower, but this is often accompanied by a lower Insured Declared Value (IDV) due to depreciation.
  • Make And Model Of Bike
    The premium amount is closely tied to both the model and manufacturing date of the bike. A newer, higher-end model with a recent manufacturing date typically results in a higher premium, whereas an older model with an earlier manufacturing date tends to lead to a lower premium.
  • Geographical Zone
    The premium for bike insurance is influenced by the location of registration. Regions that are susceptible to natural disasters or have elevated rates of theft may experience higher premiums.
  • No Claim Bonus (NCB)
    The No Claim Bonus (NCB) serves as a valuable advantage. If you have a history of no claims in your previous comprehensive bike insurance policy and are now opting for a standalone own damage bike insurance plan, the NCB will seamlessly transfer to this new policy, resulting in a premium discount for you. This bonus accumulates with each successive claim-free year, up to a specified limit.
  • Type of Coverage And Add-ons
    The premium is influenced by the type of coverage selected, whether it's standalone own damage or comprehensive. Furthermore, the add-ons you include with your base policy to broaden its coverage like zero depreciation, roadside assistance, etc. contributes to the overall premium. Essentially, the more add-ons you opt for, the greater your premium will be.
  • Discounts And Offers
    Insurance providers might provide discounts depending on specific criteria, like membership in recognized automobile associations, the installation of anti-theft devices on your bike, etc.

Which Add-ons are Available With Own Damage Bike Insurance Cover?

When it comes to bike insurance, many companies provide different add-ons that you can include with your own damage cover to boost the protection offered by your policy. Keep in mind that the availability of these add-ons may vary between insurance providers. Here are some common add-ons that you can typically find with own damage bike insurance -

  • Zero Depreciation Cover
    This particular add-on ensures that the insurance company covers the complete cost of repairing or replacing parts without accounting for depreciation. Standard policies typically factor in depreciation, which may result in you bearing a portion of the repair costs.
  • Return To Invoice (RTI) Cover
    In the event of a total loss or theft, the Return to Invoice (RTI) cover guarantees that you receive the bike’s original invoice value, encompassing registration fees and road tax.
  • Consumables Cover
    This add-on covers the expenses related to consumable items, including nuts, bolts, engine oil, etc., which are typically excluded under a standard policy.
  • Roadside Assistance
    Roadside assistance offers a wide array of services, including towing, fuel delivery, flat tire assistance, minor repairs, etc. in case of a breakdown or issue with your bike.
  • Personal Accident Cover For Pillion Rider
    The standard policy typically provides personal accident coverage for the owner/driver. Opting for this add-on expands the coverage to include the pillion rider as well.
  • No Claim Bonus (NCB) Protection
    No Claim Bonus protection allows you to retain your accrued No Claim Bonus even in the event of making a claim during the policy period.


Benefits of Buying Own Damage Bike Insurance From SMC

Getting insurance is a breeze when you've got the perfect insurance ally by your side. SMC stands out as an excellent choice for securing insurance that fits your needs, and here's why -

  • 100% Client-Centric Approach
    Unlike other platforms, we don't serve the interests of insurance companies; we're dedicated solely to serving you. When we recommend plans, your unique needs and preferences take centre stage.
  • Spam-Free
    We believe in minimal intrusion – 0% spam. We'll only give you a ring when you ask us to. We value your peace and privacy.
  • Unmatched Claims Support
    When it comes to claims, we understand that insurance is more than just a document – it's a lifeline waiting to be activated. That's why we pledge 360° support during claims. It's not just about the paperwork; it's about having an expert team by your side, ensuring your claims process is smooth sailing.

How Much Protection Can be Availed of in Own Damage Cover?

Two-wheeler insurance's Own Damage (OD) cover is designed to shield your vehicle from a spectrum of risks, encompassing damages caused by accidents, collisions, natural disasters, fire, theft, malicious acts, etc. The level of protection is determined by the Insured Declared Value (IDV), signifying the maximum payout in the event of a total loss.

To bolster this coverage, you have the option to include additional features through optional add-ons like zero depreciation, engine protection, etc.

While these enhancements broaden the coverage, it's essential to be aware that deductibles may be applicable. A thorough understanding of the terms and conditions of the policy is imperative for ensuring an all round protection.

How to Claim Your Bike Insurance Policy for Own Damage?

The following are the steps required to file a bike insurance claim -

  • Inform The Insurance Provider
    In the unfortunate event of a mishap, prioritise your safety by taking all necessary precautions. Once secure, promptly contact your bike insurance provider to initiate the necessary claims process.
  • Lodge An FIR
    If your vehicle gets stolen or involved in an accident with others, it's essential to file a First Information Report (FIR) at the police station nearby. A copy of the FIR is necessary when submitting an insurance claim.
  • Gather Proof 
    When you're filing a claim, it's crucial to show that the incident is genuine. So, be sure to gather as much evidence as possible - take photos or videos, and jot down the contact details of any bystanders who witnessed the incident. This documentation is key to supporting the legitimacy of your claim.
  • Submit Documents
    The specific documents needed for the claims process might vary slightly based on your situation or insurance provider. However, the most commonly required documents are outlined above and must be submitted to the insurance provider for the seamless processing of the claim settlement.
  • Surveyor Visit
    Following the submission of documents, the insurance company will arrange a visit with the surveyor. The surveyor's role is to assess the damages to the bike, verifying the extent of the damage. During this process, it's important to answer the surveyor's questions honestly, as any inconsistencies may result in the cancellation of your claim request.
  • Repair Work
    Once your claim gets the green light from the surveyor, it's time to schedule your bike for repairs. Choosing one of the insurance provider's recommended garages is the smart move. This way, the repair costs will be directly covered by the insurance company, leaving you without any out-of-pocket expenses.

What are The Documents Needed for Filing an Own Damage Claim?

When filing an own damage claim, ensure you have the following documents ready for submission -

  • Duly filled and signed claim form.
  • Copy of the insurance policy.
  • Tax payment receipt.
  • Estimate of vehicle repair costs from the chosen repairer, signed and stamped by the garage.
  • Original repair invoice and payment receipt, both signed and stamped by the garage. For cashless claims, only the repair invoice is required.
  • Claims discharge cum satisfaction voucher, signed across a revenue stamp.
  • Details of the vehicle inspection address, especially if the vehicle wasn't taken to the nearest garage.
  • Verified photocopy of the driver's licence who was driving the vehicle during the accident, submitted to the surveyor along with the original.
  • Verified photocopy of the registration certificate, also provided to the surveyor along with the original.
  • PAN card.
  • Aadhar card.
  • Photocopy of the Pollution Under Control Certificate.
  • Cancelled cheque/passbook, necessary for reimbursement claims.

Wrapping up!

Shield your bike from financial strain caused by earthquakes, storms, fires, and accidents with a own damage bike insurance policy – a vital defence against potential high damage costs. If you've got third party only insurance handling legal and financial liabilities, consider adding a standalone policy for a comprehensive shield to your bike. It's your assurance of complete protection, bringing peace of mind to your journeys on the road.


  1. What is own damage in bike insurance?
    An own damage bike insurance policy provides coverage for damages or losses sustained by your vehicle. This encompasses damages resulting from accidents or natural disasters like earthquakes, floods, etc. Additionally, it extends coverage to losses caused by man-made events such as riots, strikes, theft, or other unforeseen occurrences.

  2. Can we drive a vehicle without own damage insurance?
    While Own Damage Insurance is not obligatory under Indian motor laws, it is strongly advisable to opt for comprehensive coverage to safeguard your vehicle. On the other hand, Third-party insurance is a legal requirement for driving on Indian roads.
  3. What is covered in own damage insurance?
    An own damage car insurance policy provides coverage for damages resulting from accidents and natural disasters. This includes protection against damages caused by events like earthquakes, floods, storms, etc. Additionally, it extends coverage to man-made incidents such as riots, vandalism, terrorist attacks, etc.
  4. Can I claim insurance for bike scratches?
    Certainly, you can file a bike insurance claim for scratches, provided you hold a comprehensive bike insurance policy.
  5. Do I need to buy my bike’s standalone own damage cover and third-party insurance from the same insurance provider?
    There is no requirement to obtain both policies from the same insurance provider.
  6. How many types of bike insurance policies are available?
    Bike insurance encompasses three primary types of policies - third-party liability insurance, comprehensive insurance, and own damage insurance.
  7. Who is eligible to buy an own damage bike insurance?
    Individuals holding an existing third-party only bike insurance policy are eligible to obtain own damage bike insurance, extending coverage to losses incurred by their own bike.
  8. Does an Own damage insurance policy include personal accident coverage?
    A personal accident cover is a compulsory requirement for every bike owner and is commonly purchased alongside a third-party bike insurance. If you do not have one, you also have the option to include it in your own damage cover.
  9. Which bike insurance is mandatory by law?
    Under the Motor Vehicles Act, it is mandatory for every bike owner to possess at least a third-party bike insurance. Riding without this insurance is considered illegal on Indian roads and may lead to traffic penalties.
  10. Can we claim own damage insurance?
    Absolutely, you are eligible to make a claim for own damage insurance for your bike. The Insurance Regulatory and Development Authority of India introduced standalone own damage policies in September 2019, providing distinct coverage for financial protection against damages arising from fire, accidents, theft, natural disasters, etc.
  11. What do OD and TP mean in bike insurance?
    In the realm of bike insurance, OD stands for Own Damage cover, providing protection for losses and damages to your own vehicle. Meanwhile, TP represents Third-Party cover, offering safeguards against damages to other vehicles and properties. The comprehensive coverage option combines both facets, delivering thorough protection against a variety of risks.
  12. Which is mandatory OD or TP?
    In accordance with the regulations of Motor Vehicle Act, 1988, the third-party insurance policy is a compulsory requirement. While TP coverage is mandatory, Own Damage (OD) insurance is optional but strongly advised. Own damage cover provides comprehensive protection, safeguarding against damages to your own vehicle in addition to the required third-party cover.
  13. What is the period of own damage bike insurance?
    Own damage insurance generally spans a duration of one year, requiring yearly renewal to maintain uninterrupted coverage against unforeseen damages. In the case of new cars, it is mandatory to acquire a bundled three-year third-party insurance policy for enhanced security.
  14. Does own damage cover theft?
    Certainly, own damage insurance not only covers theft but also provides protection against damages arising from accidents, natural calamities, riots, fire, etc. This comprehensive coverage ensures financial security in the face of unforeseen events.
  15. How is own damage premium calculated?
    The calculation of own damage premium involves the following formula –

    Own Damage Premium = IDV x Premium Rate (decided by the insurer) + Add-Ons (extra coverage) – Discounts & Benefits (like No Claim Bonus, Theft Discount, etc).

    This formula is instrumental in determining the overall cost of comprehensive coverage for your bike insurance.
  16. My two-wheeler was completely damaged as a result of an accident. Will the own damage insurance cover my losses?
    Certainly, the Own Damage (OD) plan will cover losses in situations where damages to the insured vehicle are beyond repair.

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