Types of motor insurance
- Third-party: compulsory by law. Pays for injury to other people or damage to their property. It does not cover your own vehicle.
- Own damage: covers your own vehicle against accidents, theft, fire and floods. Can be bought separately if you already have third-party cover.
- Comprehensive: third-party and own damage together in one policy.
Terms to know when comparing quotes
- IDV (Insured Declared Value): the most the insurer pays if your vehicle is stolen or written off, roughly its current market value. A very low IDV makes the premium cheaper but the cover weaker.
- No Claim Bonus (NCB): a discount on the own-damage premium for each claim-free year, rising from 20% to 50% after five years. It belongs to you, not the vehicle, so you can carry it to your next vehicle.
- Add-ons: extras such as zero depreciation, engine protection and roadside assistance. Useful for new vehicles; check the price of each one.
Frequently asked questions
Is third-party insurance enough?
It is the legal minimum. It does not pay for damage to your own vehicle, so most people with a newer or financed vehicle buy comprehensive cover.
What is the fine for driving without insurance?
Under the Motor Vehicles Act, ₹2,000 and/or up to three months in jail for a first offence, and ₹4,000 for a repeat offence.
How do I check if my vehicle insurance is valid?
Use the Vahan citizen services link above with your registration number, or the mParivahan app. Your policy document also shows the end date.
Sources
- IRDAI ↗ – insurance regulator, third-party premiums
- Parivahan ↗ – vehicle and insurance records