In bike insurance, OD premium refers to the premium paid for own damage coverage. This means that in case of an accident or damage to your motorcycle, the insurance company will cover the costs of repair or replacement. Understanding what OD premium is and how it works is important when choosing a bike insurance policy. In this article, we will take a closer look at the concept of OD premium in bike insurance.
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What is OD Premium?
OD stands for ‘Own Damage’ which refers to the damages caused to your own motorcycle due to unexpected events like accidents, natural calamities or theft. The OD premium is the amount paid by the policyholder to the insurance company to avail the benefits of own damage cover under their bike insurance policy. It covers the cost of repairs or replacement of your bike in case of any physical damage, theft, or total loss.
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Factors Affecting OD Premium
The premium for own damage coverage is calculated based on various factors such as the make and model of the bike, age of the bike, engine capacity, geographical location, and the insured declared value (IDV) of the bike. The IDV is the current market value of the bike and is calculated at the time of buying or renewing the policy. The higher the IDV, the higher the premium, and vice versa.
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Types of Own Damage Cover
There are two types of own damage covers available under bike insurance policies – comprehensive coverage and standalone own damage coverage. Comprehensive coverage provides protection against third-party liability as well as own damage. Standalone own damage coverage only covers damages caused to your own motorcycle and does not include third-party liability coverage. Both types of coverage come with their respective premiums.
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Benefits of Own Damage Coverage
Having own damage coverage under your bike insurance policy can provide several benefits. It ensures that you are financially protected in case your bike is damaged or stolen. With own damage coverage, you can get your bike repaired or replaced without worrying about the high costs involved. Additionally, it can provide peace of mind knowing that you are covered in case of any unforeseen events.
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Claim Process for Own Damage Coverage
In case of any damages to your motorcycle, you should inform your insurance company immediately and file a claim. The insurance company will appoint a surveyor to assess the extent of the damage and provide an estimate of the repair costs. Once the claim is approved, the insurance company will either directly pay the repair shop or reimburse you for the expenses incurred.
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Exclusions under Own Damage Coverage
There are certain exclusions that are not covered under own damage coverage in bike insurance policies. Some common exclusions include normal wear and tear, mechanical or electrical breakdowns, damages caused due to driving under the influence of drugs or alcohol, and damages caused during participation in illegal activities. It is important to read the policy document carefully to understand the exclusions.
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Tips for Availing the Best OD Premium
To avail the best OD premium under your bike insurance policy, there are certain tips that you can follow. One of them is to install safety devices on your bike such as anti-theft alarms, immobilizers, and GPS trackers. This can help reduce the risk of theft and lower the premium amount. Another tip is to maintain a good driving record and avoid accidents or traffic violations. This can help you negotiate a better premium rate with the insurance company.
In conclusion, understanding what OD premium is and how it works is important when choosing a bike insurance policy. It provides financial protection against damages caused to your own motorcycle and ensures that you can get it repaired or replaced without worrying about high costs. Factors such as the make and model of the bike, IDV, and geographical location can affect the premium amount. By following certain tips, you can avail the best OD premium and get the most out of your bike insurance policy.
