What is a Own damage vs third-party liability?
Third-party liability cover pays for injury or damage you cause to others — it is legally mandatory for every vehicle in India. Own-damage cover pays for damage to your own vehicle (accident, theft, fire, natural events). A comprehensive policy combines both; a standalone third-party policy covers only your liability to others.
Two different jobs
Third-party cover exists to protect other people and their property from harm you cause with your vehicle. It is compulsory by law, but it pays nothing towards your own vehicle's repairs.
Own-damage cover protects your car itself. Bundled with third-party into a comprehensive policy, it covers accident damage, theft, fire and natural calamities, subject to IDV, deductible and add-on choices.
Example
You cause a collision that damages another car and dents your own. Third-party cover handles the other party's claim; your own car's repairs are met only if you also hold own-damage (comprehensive) cover.
Common mistakes
- Running only third-party cover and expecting your own car's repairs to be paid.
- Letting comprehensive cover lapse and dropping to bare third-party without realising own damage is now uncovered.
Frequently asked questions
Is third-party insurance enough?
It meets the legal minimum and protects others, but it pays nothing for your own vehicle. For theft, accident or natural-calamity damage to your car, you need own-damage/comprehensive cover.
What is a standalone own-damage policy?
It is own-damage cover bought separately, often alongside a longer third-party policy, so you can insure your car's damage without bundling both into one term.