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Motor insurance · Car
Car insurance that pays when it matters.
Two policies can show nearly the same premium and pay very differently after an accident. The difference is in the insured declared value, the add-ons and the deductions — this page walks through them.
Reviewed
In short
- Third-party cover is compulsory; comprehensive cover adds damage to and theft of your own car.
- The insured declared value (IDV) is the most you can receive if the car is stolen or written off.
- Your no-claim bonus can reach 50% of the own-damage premium, and it belongs to you, not the car.
Comprehensive, third-party or standalone own damage
Third-party cover pays for injury or damage you cause to others and is required by law. Comprehensive cover adds damage to and theft of your own car. Where third-party cover is already in place — as it is for a new car’s first three years — a standalone own-damage policy covers the rest.
The insured declared value
It is set from the manufacturer’s listed price less depreciation for age: 5% up to six months, 15% up to one year, 20% up to two, 30% up to three, 40% up to four and 50% up to five years. Beyond five years it is agreed with the insurer.
Add-ons worth understanding
Zero depreciation pays the full cost of replaced parts, usually for newer cars and a limited number of claims a year. Engine protection covers water ingress. Return to invoice pays the invoice value on a total loss. Consumables, key replacement and roadside assistance each do what they say.
What to check
These decide whether cover is real when you claim. Read them before the premium.
The IDV at every renewal
It is the ceiling on a theft or total-loss settlement. Accepting a low figure to cut the premium costs you on the one claim that matters.
Deductibles
A compulsory deductible applies to every own-damage claim; a voluntary one lowers the premium and raises what you pay on each claim.
Garages near you
Cashless repair is cashless only at the insurer’s network garages. Check the list for where you actually drive.
Valid documents
The registration certificate, a current pollution certificate and a valid licence. An invalid licence at the time of an accident can defeat the own-damage claim.
Personal accident cover
The owner-driver must hold ₹15 lakh of personal accident cover; one such cover is enough across all the vehicles you own.
Questions people ask
General guidance. Your policy wording decides the specifics.
Should I buy zero depreciation cover?
It is usually worth it in the first few years of a car’s life, when parts are expensive and depreciation deductions are large. Check the limit on claims per year.
What reduces a claim payout?
Depreciation on replaced parts unless you hold zero depreciation cover, the compulsory and voluntary deductibles, and items the policy excludes.
Can I keep my no-claim bonus when I buy a new car?
Yes. It belongs to you. Ask your insurer for a no-claim bonus certificate and give it to the insurer of the new car.
My policy has expired. What now?
Do not drive uninsured. Most insurers inspect the car before restarting cover, and the no-claim bonus is lost once the gap passes 90 days.
Insurance is the subject matter of solicitation. Benefits depend on the policy terms and the insurer’s decision; read the policy wording before buying.