Third-party motor insurance
Third-party cover pays for your legal liability when your vehicle injures someone, causes a death, or damages someone else's property. In India this cover is a legal requirement for any vehicle used in a public place, and driving without it is an offence.
- It protects the other party, not your own vehicle.
- Property damage liability is subject to a limit; injury and death claims are decided under the law.
- Premium rates for this component are notified by the regulator rather than set freely by insurers.
See the short explainer: what is third-party insurance.
Comprehensive insurance
A comprehensive policy bundles the mandatory third-party liability with own-damage cover for your vehicle, and lets you attach optional add-ons. It is the usual choice for a newer or higher-value vehicle, because a single accident can otherwise cost far more than several years of premium.
Own-damage cover
Own-damage cover pays for loss or damage to your own vehicle from events named in the policy — typically accident, fire, theft, natural calamity, riot and damage in transit. It is available bundled inside a comprehensive policy or as a standalone own-damage policy where a valid third-party policy is already in force.
Depreciation is applied to replaced parts unless you hold an add-on that waives it.
Insured Declared Value (IDV)
IDV is the value assigned to your vehicle for the policy year and the maximum payable if it is stolen or damaged beyond economical repair. It is derived from the manufacturer's listed price for the model and variant, less depreciation for age.
- A lower IDV reduces the premium and reduces a total-loss settlement.
- A higher IDV raises the premium; the assessed value still governs the payout.
- Accessories fitted after purchase may need to be declared separately.
More detail: what is IDV in motor insurance.
No Claim Bonus
No Claim Bonus is a discount on the own-damage premium earned for each claim-free policy year. It rises in steps up to a cap, resets after a claim unless protected by an add-on, and belongs to you rather than to the vehicle — so it can normally be carried to a new insurer or a replacement vehicle.
Full explanation: what is NCB in car insurance.
Deductibles
Motor own-damage policies carry a compulsory deductible fixed by the product, and you may also opt for a voluntary deductible in return for a lower premium. Both amounts are subtracted from an approved own-damage claim, so choose a figure you could pay comfortably at short notice.
Add-ons
- Zero depreciation — removes depreciation deductions on replaced parts.
- Engine protection — covers engine damage from causes such as water ingress.
- Roadside assistance — towing and on-road help after a breakdown.
- Return to invoice — aims to bridge the gap between IDV and the invoice value on a total loss.
- NCB protection — preserves the bonus after a permitted number of claims.
- Consumables cover — pays for items such as oils and lubricants during a repair.
Availability, conditions and limits differ between insurers, and each add-on increases the premium.
Policy comparison
- Compare quotes at the same IDV, otherwise the cheaper premium is misleading.
- Check the compulsory and voluntary deductibles in each quote.
- List which add-ons are included rather than merely offered.
- Look at the cashless garage network in the areas where you drive.
- Read the exclusions — wear and tear, mechanical breakdown and driving without a valid licence are commonly excluded.
Claims process
- Ensure safety first and, where the law requires, report the incident to the police.
- Inform the insurer promptly and note the claim reference.
- Photograph the damage and the scene before repairs begin.
- Take the vehicle to an authorised or network garage if you want a cashless repair.
- Allow the surveyor to inspect and submit the requested documents.
- Pay the deductible and any non-covered portion, and collect the settlement letter.
This page is general information. Cover, add-ons and claim rules vary by insurer and policy — read the policy wording and see our disclaimer.