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🔧 '''Own damage''' refers to physical loss or damage sustained by an insured's own property — most commonly a vehicle, vessel, or piece of equipment — as covered under the first-party section of an [[Definition:Insurance policy | insurance policy]]. In [[Definition:Motor insurance | motor insurance]], own damage is the counterpart to [[Definition:Third-party liability insurance | third-party liability]] coverage: while liability responds when the insured causes harm to others, own damage indemnifies the insured for harm to their own asset. The term is widely used across markets in Asia, the Middle East, and Europe, and in some jurisdictions the abbreviation "OD" has become standard shorthand in [[Definition:Policy wording | policy wordings]], [[Definition:Underwriting | underwriting]] guidelines, and regulatory filings.

⚙️ Coverage under an own damage section is triggered when a covered peril — such as collision, fire, theft, natural catastrophe, or malicious damage — causes loss to the insured asset, subject to any [[Definition:Deductible | deductible]], [[Definition:Excess | excess]], or [[Definition:Exclusion | exclusion]] specified in the policy. [[Definition:Claims | Claims]] settlement typically involves establishing the extent of damage through inspection, estimating repair costs, and paying the insured or directing payment to an approved repair facility. The [[Definition:Sum insured | sum insured]] for own damage is usually set at the asset's market value or an agreed value at [[Definition:Inception | inception]], and it may depreciate over the policy period in line with the asset's age. In [[Definition:Marine insurance | marine]] and [[Definition:Aviation insurance | aviation]] lines, own damage equivalents — hull damage or hull loss — follow similar principles but are governed by specialized [[Definition:Policy wording | wordings]] and often involve distinct [[Definition:Surveyor | surveyor]] networks and valuation methodologies.

💡 From a portfolio management standpoint, own damage is a frequency-driven line that generates a steady flow of attritional claims, punctuated by severity spikes during catastrophe events such as hailstorms, floods, or earthquakes that simultaneously damage large numbers of insured assets. This dual exposure makes [[Definition:Pricing | pricing]] and [[Definition:Reserving | reserving]] for own damage a complex actuarial exercise, requiring granular data on asset values, usage patterns, and geographic concentration. [[Definition:Insurtech | Insurtechs]] have targeted own damage processes aggressively, deploying AI-based damage estimation from smartphone photos, parametric triggers for weather-related vehicle damage, and real-time repair tracking platforms. For [[Definition:Reinsurer | reinsurers]], portfolios with heavy own damage concentration present [[Definition:Aggregation risk | aggregation risk]] that must be modeled carefully, particularly in regions prone to natural perils.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Motor own damage (OD)]]
* [[Definition:First-party insurance]]
* [[Definition:Third-party liability insurance]]
* [[Definition:Comprehensive motor insurance]]
* [[Definition:Hull insurance]]
* [[Definition:Deductible]]
{{Div col end}}

Definition:Own damage - Revision history

PlumBot: Bot: Creating new article from JSON