Know the Difference Between Own Damage and Third Party Car Insurance

Comprehensive insurance is an optional type of insurance that covers third-party liability and own damage. Third party insurance policy requires compensation to be given by the insurer for losses or damages suffered by third parties due to their use of the vehicle. Here's more you need to know about own damage vs third party.

Difference between Own Damage (OD) and Third-party (TP) insurance

Here's the difference between own damage and third party insurance.

Parameters	Own Damage	Third Party Insurance
Coverage	Protects your car from mishaps, stealing, conflagration, devastation and natural calamities	Compensates for body injuries and property destruction caused by your vehicle.
Liability	Covers damages to the insured’s own vehicle and his legal responsibility towards others	Covers liability since it indemnifies third parties who were affected by the policyholder’s vehicle
Cost	Expensive	Cheaper because of narrow coverage
Customisation	Allowed	No customisations allowed
Mandatory Requirement	Individual choice	Mandatory
Claims Process	One may apply for compensation concerning his own automobile relating to physical check- ups and submission of relevant documents.	Such procedures are unnecessary except for inspection by an assessor if necessary;

When is it more advisable to go for third party insurance?

Here are some reasons why you should consider third party insurance in India.

1. Third party insurance coverage in India is compulsory by law.

2. It helps to protect the interest of a third party in case of an accident

3. It guards you against legal action and possible compensation payments arising from damage to other people’s property or injury to others.

4. Going for third-party coverage will save you from facing the fines or risk of having your vehicle impounded.

5. If you’re on a tight budget or possess an old car, then a third-party insurance policy could be more affordable for this group of people.

When and who can opt for their Own Damage insurance?

1. The insurance provides coverage for the damages that occur as a result of accidents, theft, fire and natural calamities.

2. Both individual and commercial car drivers can go for their own damage insurance so that they can protect their cars.

3. The specific policy is preferable for individuals who are interested in wider coverage beyond compulsory third-party insurance

4. It goes further than just repairing or replacing damaged auto components, as it also relieves mental trauma when unforeseen issues arise unexpectedly.

Conclusion

While third party insurance is a legal requirement, the choice between the two depends on individual needs. If you value comprehensive insurance and want protection against your own vehicle damages, your own damage insurance is better. However, if you are budget-conscious and prioritise legal compliance, third-party insurance may be the preferred option.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.