Can I buy standalone OD cover from a different insurer than my Third-Party policy?

Yes. Standalone OD cover does not need to come from the same insurer holding your Third-Party policy. This lets you compare insurers for better Own Damage pricing or service while keeping your existing Third-Party policy in place.

Does Own Damage cover include theft of my vehicle?

Yes. Own Damage cover pays out for theft, up to your car's Insured Declared Value, alongside repairs from accidents and losses from fire or events such as flooding. Third-Party-only cover, by contrast, excludes theft of your own vehicle entirely from what it pays for.

Why is Own Damage cover also called First-Party cover?

The name comes from who is involved in a claim: you are the first party, your insurer is the second party, and the person you might injure or damage is the third party. Own Damage and First-Party describe the exact same cover, just named from a different point of view.

Why do new cars get a 3-year Third-Party term but only a 1-year OD term?

This bundling has applied to new cars since September 2018, ensuring the legally required Third-Party portion cannot lapse quietly in year two or three. The Own Damage portion still renews annually, which is exactly the gap standalone OD cover was introduced to address.

Does my No Claim Bonus carry over if I switch to a standalone OD policy?

Yes. Your accumulated No Claim Bonus on the Own Damage side transfers when you switch insurers or move to a standalone OD policy, provided you can show your previous policy documents. It does not reset simply because the cover type or insurer has changed.

Does my No Claim Bonus reduce my Third-Party premium at all?

No. No Claim Bonus, standard or Kiwi's Super NCB, applies only to the Own Damage portion of your premium. Your Third-Party premium is fixed by the regulator and does not move regardless of how many claim-free years you have built up.

Is the deductible on Own Damage claims the same across all insurers?

Yes. The compulsory deductible on Own Damage claims, ₹1,000 for cars up to 1500cc and ₹2,000 above that, is set by the regulator rather than by individual insurers. It applies whether your Own Damage cover is part of comprehensive cover or stands alone. Read more about how to raise a claim.

Does own damage cover exist for bikes as well as cars?

Yes, the same standalone OD permission introduced in September 2019 applies to 2-wheelers as well as cars, since it is a general insurance rule rather than one limited to a single vehicle type.

Will my Own Damage premium go up if I make a claim?

Not directly through the premium formula, but a claim does step your No Claim Bonus down, which raises what you pay at renewal compared with a claim-free year. Weighing a small repair bill against that renewal impact is worth doing before you raise a claim.

Can I add Own Damage cover mid-way through my Third-Party policy term?

No. Own Damage cover, standalone or otherwise, has to be bought as a fresh policy running from its own start date rather than added mid-term to an existing Third-Party policy. You can still buy it any time your Third-Party cover remains valid.

Is Own Damage cover worth it for an older car?

It depends on your car's current Insured Declared Value. If that value is already low, the maximum payout shrinks along with it, and the premium saved by skipping Own Damage cover can outweigh what a claim would actually recover for an older vehicle.

Does Kiwi's Super NCB apply to standalone OD the same way as comprehensive?

Yes. Super NCB discounts the Own Damage premium wherever that Own Damage cover sits, whether inside a comprehensive policy or bought as a standalone OD policy. Which structure you choose does not change how the discount builds or steps down after a claim.

What is own damage cover and when a standalone OD policy makes sense

Written by

Reuben SolomonLead Content Writer

Reviewed by

Rupinderjit SinghHead - Tech Product & Digital Business

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Introduction

Own Damage cover is the part of your car insurance that pays for repairs, theft, or total loss to your own vehicle, separate from the Third-Party liability the law requires. Since September 2019, you can also buy this Own Damage protection as a standalone policy, without rebuying Third-Party cover you already hold.

Keep in mind

Own Damage (OD) cover pays for your own vehicle, not for damage you cause to others
Standalone OD cover has been permitted since September 2019
New cars are bundled with 3-year Third-Party cover and 1-year Own Damage cover at purchase
Own Damage claims carry a compulsory deductible, ₹1,000 up to 1500cc and ₹2,000 above that
Comprehensive cover is simply Third-Party liability and Own Damage cover bought together

What Own Damage cover actually pays for

Reverse into a gate, lose the car to theft, or watch a flooded street ruin the engine, and Own Damage cover is the part of your policy that pays for the damage caused. It exists purely for your own vehicle, with no connection at all to injury or damage you cause someone else.

Own Damage cover pays out up to your car's Insured Declared Value (IDV), the current market value agreed with your insurer at the start of the policy. That figure is what caps your payout if the car is stolen or damaged beyond repair, so it is worth checking rather than accepting whatever an insurer proposes.

Also known as First-Party cover

In everyday insurance conversation, Own Damage cover is often called First-Party cover instead, and the two terms mean exactly the same thing. The naming follows from who is actually involved in a claim: you, the policyholder, are the first party, the person you might injure or whose property you might damage is the third party, and your insurer sits between the two as the second party. If you see "First-Party" on a policy document or hear it in conversation, it is describing the same Own Damage protection this article is about, just from a different angle.

Why standalone OD exists separately from comprehensive cover

Comprehensive cover has always bundled Third-Party liability and Own Damage protection into a single annual policy. That worked fine until new cars started carrying a 3-year Third-Party term alongside a 1-year Own Damage term, a structure mandated for new cars from September 2018.

The mismatch created a real gap. By year two, your Third-Party cover is still running, but your Own Damage cover has expired and needs renewing on its own. Standalone OD cover, permitted from September 2019, exists precisely to fill that gap without forcing you to buy Third-Party cover you do not need yet.

When standalone OD makes more sense than full comprehensive

Here are a few situations where having a standalone OD can make sense:

Your Third-Party policy is still active
If your Third-Party cover has time left to run, standalone OD lets you insure your own car without paying for another Third-Party policy during the same period.
You want to change your OD insurer
You may be happy with your existing Third-Party insurer but prefer another insurer for its OD pricing, service or features. Standalone OD lets you make that switch without changing your existing Third-Party cover.
You have long-term Third-Party cover
If your car has a multi-year Third-Party policy, you can buy standalone OD separately to protect your own car while your existing Third-Party cover continues.

Standalone OD and comprehensive, side by side

Standalone OD and comprehensive each cover your own car differently and seeing them side by side makes it easier to see which fits your needs best.

Feature	Standalone Own Damage (First-Party)	Comprehensive
Covers your own car	Yes	Yes
Covers liability to others	No, needs an existing Third-Party policy	Yes, bundled in
Requires an existing valid Third-Party policy	Yes	No
Can come from a different insurer than your Third-Party policy	Yes	Not applicable, one insurer covers both
No Claim Bonus applies	Yes	Yes
Compulsory deductible applies	Yes	Yes
Typically suits	Renewing only the Own Damage side once Third-Party still has time left	Buying cover for the first time, or when Third-Party has also lapsed

What Own Damage cover does not include

Own Damage (OD) cover protects your car against damage or loss to the car itself, but it does not cover everything. It is important to know what falls outside this cover:

Third-Party liability
OD cover does not pay for injury, death or property damage you cause to another person. You need Third-Party insurance for this protection.
Your compulsory deductible
You still have to pay the compulsory deductible on every OD claim. It is ₹1,000 for cars up to 1500cc, such as a Maruti Suzuki Swift, and ₹2,000 for cars above 1500cc, such as a Hyundai Creta.
Other policy exclusions
OD cover does not pay for losses or damage specifically excluded under your policy. Check your policy document for the complete list of exclusions.

How premiums and deductibles work for Own Damage claims

Your Own Damage premium moves with your car's IDV, age, and engine capacity, unlike the Third-Party portion, which the regulator sets uniformly. That IDV drops every year on a fixed depreciation scale, running from 5% in the first six months up to 50% for cars older than five years.

Goods and Services Tax (GST) at 18% applies to Own Damage premiums the same way it applies to Third-Party and comprehensive cover, so build that into whatever quote you are comparing. An older car with a lower IDV usually costs noticeably less to insure on the Own Damage side.

How No Claim Bonus maps to your Own Damage premium

No Claim Bonus (NCB), including Kiwi’s Super NCB, applies only to the Own Damage (OD) portion of your premium. It does not reduce the Third-Party portion.

This is because the Third-Party premium is fixed by the regulator and does not change based on your claims history. So, even if you build up several claim-free years, your NCB only reduces the OD premium.

The same rule applies whether you have standalone OD or comprehensive insurance. Both include an Own Damage component, so your NCB works in the same way. The only difference is that standalone OD covers your own car separately, while comprehensive insurance combines OD and Third-Party cover in one policy.

Where Kiwi fits once your Own Damage cover comes up for renewal

When your Own Damage cover comes up for renewal, your No Claim Bonus can make a difference to what you pay. Kiwi's Super NCB is an exclusive Kiwi benefit that can help you retain more of your NCB and get a higher discount at renewal.

Kiwi's Super NCB builds up to 90% and gives up to 40% more discount than a standard No Claim Bonus
A single claim steps your Super NCB down only one level, rather than resetting it to zero
This applies the same way whether your Own Damage cover is standalone or part of a comprehensive policy

You can compare Kiwi's car insurance plans once you know whether standalone OD or comprehensive fits your renewal.

Conclusion

Standalone OD can be a useful option when your Third-Party cover is still active and you only need to renew the protection for your own car. It lets you choose Own Damage cover separately without paying for Third-Party cover again during the same period.

If you are buying car insurance for the first time, or your Third-Party cover has also expired, comprehensive insurance may be the simpler option. The best way to confirm this is to check what cover you already have and when it expires, so you can choose the policy that fits your needs.

Written by

Reuben Solomon

Lead Content Writer