What Is 1 Year Own Damage Insurance?

Posted on: Jun 18, 2025 | 3 mins | Written by: HDFC ERGO Team

What Is 1 Year Own Damage Insurance?

In India, third-party liability coverage is mandatory by law through two-wheeler insurance. But it leaves your prized ride open to damage by accident, theft, fire, and natural disasters. You can customise coverage without changing the risk part with a separate own-damage insurance.

With a one-year plan, you can change the payment, the Insured Declared Value (IDV), and any add-ons every year. It's perfect for people who want to tighten their spending, get new items, or move.

Understanding the Concept of Stand‑Alone Cover

Own-damage bike insurance differs from package plans because it protects you on its own for losses to your motorcycle or scooter. You buy it with the required third-party insurance, but the price, extras, and add-ons are separate.

Because of this, you can switch providers every time your policy is up for renewal without affecting your third-party license.

Why Opt for a One‑Year Tenure?

Digital markets now make it possible to update your bike insurance online immediately. It means that you don't have to sign a long-term deal anymore. A system with only one year lets you:

1. Match the policy's end date to the plan for service.
2. Adjust the stated value to reflect depreciation.
3. You can drop or add riders like NCB (No-Claim Bonus), engine guard, and zero depreciation as your needs change.

Key Features of 1‑Year Policies

While rates are more stable with multi-year bike insurance, going the one-year route has several clear benefits:

1. The prices are changed yearly, so don't pay now for prices that will decrease in value later.
2. More freedom to switch insurance if the claim service is bad.
3. You have the freedom to turn on or off add-ons at each refresh period.
4. You receive updated NCB calculations. Thus, the bonus won can be carried over or increased yearly.

Coverage Inclusions

Most own-damage bike insurance policies protect the bike against:

1. Accidental crashes, slips, or flipping over
2. Lightning, fire, explosions, and self-ignition
3. Theft or total loss because of a break-in
4. Things that happen naturally, like a flood, a storm, an earthquake, or a landslip
5. Damage that happens during transfer by train, road, air, or water

What the Policy Does Not Cover

An OD plan that stands alone is not the same as third-party bike insurance, so it won't:

1. Pay for damages to other drivers' property or injuries
2. Waive premiums, normal wear and tear, or electrical failure
3. Cover breakdowns of machinery that aren't caused by a covered danger
4. Take into account claims made after the due date for filing

Eligibility and Vehicle Types Covered

People who own motorbikes, mopeds, or scooters can buy insurance anytime in the first year after registering their bikes. This is true as long as there is no break in the flow. Electric versions are also eligible for such protection.

Thus, people who like battery-powered rides can connect their scooter insurance liability coverage to a custom OD cover that includes battery-protect add-ons.

Buying Process in the Digital Age

Most sites let you compare different insurance plans right away. To get live rates, you must enter the registration number, make and model, and the record of a past claim. When you pay the fee, the deal is complete.

After that, you will receive proof of your new bike insurance online by email in a few minutes. If the insurance has not expired, there will be no need for a physical check.

If you change your mind later and want to switch to multi-year bike insurance, the insurer will let you port the part of the NCB that is still valid. But if you don't renew within 90 days of expiration, the bonus goes back to zero, and you may have to get your car inspected.

Stand‑Alone Vs. Combined Packages

Compared to a comprehensive bike insurance plan that comes as a package, a separate OD policy:

Let’s talk about each component separately
1. Saves you money if you have a high NCB and want to switch TP providers
2. Makes mid-year cancellation easier because the required responsibility certificate stays in place

Cost Factors Influencing Premium

The cost of one-year coverage for your own broken bike depends on several factors, including:

1. Power output and cubic capacity
2. How old the vehicle is and its IDV
3. Zone of registration (more expensive in cities than in rural areas)
4. Add-on riders and a choice of optional extras
5. Record of claims that affect NCB status

Tips to Keep Premiums Manageable

It's easier than you think to save money on two-wheeler insurance without lowering your coverage:

For a safer ride, choose a higher voluntary deductible.
1. Put in anti-theft gadgets that a recognised body has approved.
2. Build up your NCB by only filing claims for significant losses.
3. Bundle items under a different stated value to keep the base premium low.

Complementing Coverage With Add‑Ons

You have to have third party bike insurance, but it doesn't pay to fix your bike. Having a specific OD strategy is the only way to avoid that pinch. Keep both going to follow the rules and keep your funds safe.

Riders who want complete peace of mind can choose to add the following to their insurance policy:

1. Non-depreciation on parts made of plastic, rubber, and glass
2. Guard the engine against damage from water entry
3. The benefit of returning to paperwork for recent sales
4. The cover that is used up for oils, bolts, and coolant that is changed during fixes

Conclusion

If you ride your bike to work or on the weekends, own damaged bike insurance for a year is the best deal. In this way, covering can be changed quickly based on the bike's age, usage, and remaining value. Renewing every year might get old. But in the long run, it's well worth it because it gives you more power over cost and customisation.

FAQs

1. Does an own-damage insurance that lasts for one year cover extra parts?
Not at all. Accessories need to be listed separately with their values. If they are not, they will not be covered when the claim is settled.

2. Can the policy be put on hold while I'm not using my bike?
Insurance companies don't let you suspend your coverage; you must either keep it current or stop it and repurchase it when the car is ready to use again.

3. How do I use my No-Claim Bonus when I switch insurance companies?
Bring your old NCB certificate to the proposal meeting, and the new insurance company will apply the correct rate to your new payment for the next term.

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

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