Liability Only Policy or
Standalone Third Party Liability
Package Policy (Liability Only Cover +
Damage to owner’s Vehicle usually
called Own Damage O.D Cover)
The Indian Motor Vehicle Act, 2018 has obligated on vehicle owner to mandatorily have “Liability Only Insurance Policy” failing which penal provisions get attracted. Own Damage” is a voluntary cover however it is prudent for the vehicle owner to take this cover to protect against financial loss which may arise from theft, fire and accidental damages to the vehicle.
IDV is value of the vehicle upto the age of 5 years arrived at based on the Manufacturer’s present value and depreciation based on the Age of the Vehicle. For vehicle more than 5 years of age this represents the present market value of the insured vehicle mutually agreed between insurer and insured at the time of buying insurance. In the event of theft or total loss, claim is settled at Insured declared value on the policy.
Depreciation is such percentage value specified in the policy to be applied on various categories of vehicle parts in the event of partial damage claim.
No claim Bonus is the accumulated discount percentage (maximum 50%) specified in the policy allowed to insured in Own Damage Premium at the time of renewal of insurance for continued Claim free years.