The first and foremost reason to have car insurance is because it is mandatory by law to have motor insurance for every vehicle plying on road. Car insurance provides coverage against loss or damage to your vehicle due to accident, theft, fire, explosion, self ignition, lightening, riots and natural calamities. It also provides coverage against financial liability caused by injury or death of a third party or damage to the property.

Third Party Liability Cover

It provides cover against any legal liability to a third party caused when you are at fault driver. It covers damage/ injury caused by you to another person/property.

Comprehensive Cover

Comprehensive cover is an optional cover. It provides coverage against damage of car, theft, third party legal liability and personal accident cover.

Zero Dep Cover

At the time of motor insurance claim, depreciation is deducted from the assessed loss. However, zero depreciation add-on cover ensures that full value of spare parts is paid during the settlement and no depreciation is deducted.

Important Terms Related To Car Insurance

Insured Declared Value (IDV)

It is the maximum amount to be paid by the insurer at the time of a claim, if a vehicle is a total loss or stolen. It is calculated on the basis of the manufacturer's listed selling price, which will include taxes.

No-Claim Bonus (NCB)

For every claim-free year, insurance company rewards its policyholder with premium discount on renewal, a no claim bonus. It is cumulative and increases every year. It usually ranges from 10% to 50%.

Cover Note

It is a temporary insurance proof, issued to a policyholder before the issuance of actual insurance document. It is valid for 60 days from the date of issuance and is replaced by an original policy document.


Deductible is the amount that you agree to pay at the time of claim before insurer pays the rest of the amount. Higher the deductible will be, lower will be the premium.

Add-on Covers

You can enhance your car coverage with add-on covers or riders. There are various add-on covers like zero depreciation cover, engine protect and roadside assistance, etc.