Own Damage Policy: What Is It and How Does It Work?
Learn more about own damage car insurance policy for and how it can benefit you.
The Basics of Own Damage
Own Damage provides coverage for your own motorbike in the event of damage or loss. Let’s say you’re driving and you get into an accident that damages your motorbike, or a third party has damaged or steal your motorbike. These will fall under own damage.
Own damage often includes damage or loss caused by theft, housebreaking, or malicious acts. A malicious act is defined as “intentional acts committed by a third party to cause damage to the insured vehicle.” Scratches and other forms of vandalism are also covered.
Key Points
- Own Damage provides coverage for your own car in the event of damage or loss.
- The premiums for own damage is determined by the age of the insured person, age of the bike, zone of registration, motorbike make and model, safety, and equipment.
- In Thailand, motorbike insurance is a little different; there is no full coverage for motorbikes under 250cc, and Type 1 motorbike insurance is only valid for big bikes with 250cc and above. For old motorbike 6-10 years of age, only type 3 motorbike insurance is allowed.
What Is Own Damage Premium?
The premium of own damage is based on the fair market value of your vehicle. Own Damage also has a deductible, which is a set amount you must pay as part of your claim participation. When it comes to own damage for motorbike, there are a few considerations that have a direct effect on the premium. These include:
- Age of the insured person – The older the insured person is, the lower the premium may be.
- Age of the bike – When compared to an older bike, new bikes have a higher premium.
- Zone of registration – The price differs from where your motorbike is registered.
- Motorbike make and model – Bikes with more advanced features would have higher insurance premiums than those with less advanced specifications.
- Safety equipment – Bikes with safety equipment are most likely to have a lower premium.
What Does Own Damage Cover?
Own Damage usually covers the cost of damages to your motorbike due to the following things.
- Accidental damages – Covers damages to your bike as a result of an accident or collision.
- Theft or malicious acts – In the unfortunate event that your bike is stolen, Own Damage policy will compensate you.
- Man-made calamities – Damage caused by others, such as vandalism, terror attacks, and riots, are covered.
- Natural calamities – If your motorbike is damaged as a result of an earthquake, landslide, storm, tsunami, or other natural disasters, the policy will cover you.
Own Damage also covers the following:
- Hailstorm
- Explosion
- Frost
- Self-ignition
- Cyclone
- Lightening
- Typhoon
- Rockslide
- Hurricane
- Tempest.
Own Damage Policy protects your bike against man-made calamities, theft, malicious acts, accidents, and natural calamities.
What Does Own Damage Not Cover?
When you’re considering Own Damage policy, be aware that the following things are not covered.
- Third-Party Liabilities – It will only cover losses to your own bike and will not cover damages to a third party vehicle.
- Drunk driving – Because this is against the law, you will not be covered if you were riding while intoxicated.
- Driving without a license – If the person who filed the claim was driving illegally, no bike insurance company will approve the claim. As a result, you can only file a claim if you have a valid two-wheeler license.
- No own damage included in the policy – Obviously, if you haven’t acquired a particular add-on, you won’t be able to obtain its benefits.
- Owner negligence – This implies that if you do anything you shouldn’t, your bike won’t be covered. For example, suppose your city was flooded and you still ride your bike out causing it to be damaged.
- Driving without the valid license holder – You must have someone with a permanent license on the pillion seat if you have a learner’s license.
Since it covers the your motorbike from damages, Own Damage Policy is a very useful form of protection in motorcycle insurance.
The Difference Between Insuring a 1-5 Years Old Motorbike to 6-10 Years Old Motorbike
When it comes to insuring your motorbike, the age of it is one of the most important things that insurance companies take into account.
- Motorbike of 1-5 years of age which are 250 cc and above – Type 1 is most likely suitable for large bikes for 1-5 years of age which are 250cc and above, which provides coverage for your motorbike and yourself. For accidents that are deemed the insured’s fault, most insurance providers offered deductible or excess.
- Motorbike of 1-5 years of age – Although insurance allows it for a new motorbike that is 1 to 5 years of age, it is usually under Type 2 or Type 3 motorbike insurance, which only protect the third party involved and have partial coverage for the motorbikes depending on the policy conditions. This means that you may have to buy an add-on to cover the damages on your own motorbike.
- Motorbike of 6-10 years of age – A motorbike that is 6-10 years of age is still insurable, but due to its age, only a few insurance firms will recognise it. There are also several parts that may be hard to find or buy due to limited supply. For motorbikes of 6-10 years of age, only Type 3 insurance is authorised, which mainly protects third-party liability. Most older motorbike will require additional Own Damage policy.
Why Should You Purchase Own Damage Policy?
Since it covers the your motorbike from damages, Own Damage Policy is a very useful form of protection in motorcycle insurance. It covers damage to the insured vehicle caused by accidents, theft, or total loss. Own damage protects the insured in the event of a personal injury that results in disability or death.