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Motor Insurance

The law mandates third-party cover; the economics usually mandate comprehensive. Here is everything a car or bike owner in India should understand before renewal.

Motor insurance in India has two distinct parts under a single policy — a statutory third-party liability component (regulated tariff, mandatory under the Motor Vehicles Act 1988) and a market-priced own-damage component (competitive, with add-ons). Since 2020, IRDAI has decoupled the two so that you can buy a standalone annual own-damage cover alongside a long-term third-party policy for a new vehicle.

This hub covers the mechanics that matter at renewal (IDV, no-claim bonus, add-ons) and the claim process that matters when something goes wrong (surveyor, workshop, cashless network, FIR). We also dig into the add-ons that are worth paying for — zero depreciation, engine protection, return to invoice — and the ones that are usually fluff.

What you'll learn on this hub

  • Why third-party alone is legally sufficient but financially insufficient
  • How IDV is calculated under the IRDAI depreciation schedule
  • The 20 / 25 / 35 / 45 / 50 percent NCB ladder and how to transfer it
  • When to pay out of pocket instead of claiming (to preserve NCB)
  • Which add-ons are worth paying for on a car under five years old
  • The motor claim process — own damage, theft, third-party injury

Guides

Calculators

  • No-Claim Bonus Calculator

    Track accumulated NCB on your motor policy, the effective own-damage premium, and the cross-over where claiming small is worse than paying out of pocket.

  • IDV Calculator

    Estimate the Insured Declared Value (IDV) of your car or two-wheeler using the IRDAI depreciation schedule. Indicative only, not a quote.

Claim guides

Key terms