Starting September 1, you can get a standalone own damage cover for your vehicle on an annual basis.

The Insurance Regulatory Development Authority of India (IRDA) has now allowed insurers to issue standalone own damage policies for two-wheelers and cars –both new and old, on an annual basis.

“Consequently, effective September 1, 2019, the issuance of bundled policies for cars and two-wheelers will not be compulsory. Further, insurers will have the option to offer package policies, in addition to stand-alone own damage and third party policies,” the IRDA has said in a new circular.

This will mean that insurers can offer a long term bundled package of own damage and third party cover or offer it separately to the customers.

The IRDA has however, said that long term stand-alone Own Damage policy will not be permitted for the present.

It has also directed insurers that for issuing and renewing standalone own damage annual covers, they must ensure that it is offered only if a Motor TP cover is already in existence or is taken simultaneously.

“The name of the insurer, policy number, the start date and end date of the TP policy shall be indicated in the OD policy document,” it has said.

Onkar Kothari, Company Secretary and Compliance Officer, Bajaj Allianz General Insurance said, “This circular from IRDAI has provided much needed clarity in terms of insurer's approach for standalone motor OD policy, its pricing and duration,” he said, adding that it also provides clarity to the customers who have opted for bundled cover.

“Now they have an option to renew their OD part from an insurer of their choice rather than continuing with the one they had for TP,” Kothari said.