Own Damage Motor Insurance

Motor Vehicle Damage Insurance (commonly referred to as Own Damage Cover) is the primary core policy in comprehensive motor insurance, mainly covering direct physical loss or damage to the insured vehicle itself caused by natural disasters or unexpected accidents during the policy period.

Scope of Coverage

Following the comprehensive motor insurance reform in 2020, the coverage scope of Own Damage insurance was significantly expanded. A total of seven add-on riders that previously required separate purchase—theft cover, windscreen cover, flood/water damage cover, self-ignition cover, excess waiver, untraceable third-party damage cover, and designated panel workshop cover—have now been incorporated directly into the primary Own Damage policy without extra charge. Currently, Own Damage insurance primarily covers the following scenarios:

• Traffic Accident Losses: Covers damage caused by collisions with other vehicles, non-motorised conveyances, or pedestrians, as well as vehicle overturning, falling, and other road accidents, all of which are claimable.

• Natural Disaster Losses: Covers more than ten catastrophic events, including lightning strikes, storms, torrential rain, floods, tornadoes, hail, typhoons, ground subsidence, landslides, mudslides, and avalanches. For instance, vehicle damage resulting from floodwaters during heavy downpours or paintwork damaged by hail falls within the scope of coverage. Following the reform, earthquakes and their secondary hazards are also included under standard coverage.

• Other Accidental Incidents: Covers vehicle damage caused by fire, explosion, as well as collapsing structures or falling external objects.

• Reasonable Salvage and Towing Expenses: Towing and rescue expenses incurred after an accident to mitigate or prevent further loss are also claimable, up to a maximum limit not exceeding the sum insured.

Major Exclusions (Non-Claimable Scenarios)

While Own Damage insurance offers broad protection, the following circumstances are generally excluded from claims:

• Severe Traffic Violations and Intentional Acts: Insurers reserve the right to repudiate claims for accident losses resulting from unlawful acts such as drink-driving, driving under the influence of drugs, driving without a valid driving licence, and hit-and-run offences.

• Vehicles in Specific Operating States: Vehicle loss or damage sustained during racing competitions, performance testing, or while undergoing maintenance and repair is not covered.

• Isolated Damage to Specific Components: Isolated tyre/wheel damage, isolated windscreen or glass breakage, body scratches without evident collision impacts, and isolated damage to aftermarket accessories or equipment are excluded under the primary Own Damage policy and require specific add-on endorsements.

• Aggravated Damage Due to Improper Operation: Engine damage resulting from forcibly restarting the vehicle after it stalls in floodwaters constitutes improper operation and will not be compensated by the insurer.

• Consequential and Indirect Losses: Indirect losses, including loss of use/downtime costs, vehicle market depreciation, and traffic fines, are strictly excluded from compensation.

Coverage Recommendations

Whether to take up Own Damage cover should be evaluated based on individual circumstances. It is strongly recommended in the following scenarios:

• Novice Drivers: With limited driving experience and a relatively higher accident probability, Own Damage cover provides peace of mind by absorbing unexpected repair bills.

• New Vehicles or High-Value Models: Vehicles with high spare part-to-vehicle price ratios and costly repair expenses benefit substantially from Own Damage cover to cushion against hefty repair bills.

• Electric Vehicle (EV) Owners: High replacement and repair costs for core components such as the battery pack, drive motor, and electronic control system make Own Damage insurance an indispensable financial safeguard.

Important Note: The definitive scope of coverage and exclusion clauses remain strictly subject to the official insurance policy contract issued at the time of purchase.