If an accident occurs in a particular year, the insurance company charges a percentage of additional premiums next year, which is called malus. On the other hand, if there are no claims lodged in a particular year, next year’s premiums are provided at a discounted premium, which is called bonus.

Cashless garage facility is an option, where you can approach the garage present in the cashless garage list of the insurer and the claims will be settled by the insurer directly. In case, you approach a garage which is outside the list, you can get the bills reimbursed.

Voluntary deductible option is a discount you would get on the premium, when you promise to bear a certain amount of sum at the time of claim. When you declare higher deductible, your premium reduces.

Insured declared value is like the sum assured of the vehicle. It is calculated for vehicles up to 5 years old, as per the schedule of depreciation. But you can get your vehicle insured for a value of more than IDV of your vehicle on basis of high maintenance of vehicle. For vehicles more than 5 years old, IDV is fixed on the basis of a common value, by the owner and the seller.

On account of the safe driving for years, insurers give you a certain percentage of discounts on your premium for each year, when you did not claim any compensation from the insurer.

A liability is an obligation on part of the insured and insurer to compensate third-party, in case any loss has occurred to the third party due to fault of the insured.

Any other person or property involved in the event that your vehicle has been insured against is the third party.

The insurer is the second party.

The one, whose vehicle is insured, is the first party.

The few elements that are excluded while covering a vehicle under motor insurance are as follows:

• Normal wear and tear, depreciation, mechanical and electrical breakdown, failures and breakages.
• Normal damage to tyres and tubes.
• Driving under the influence of liquor or drugs at the time of accident.
• Driving without a valid driving license.