Motor insurance faqs

In case you sell your vehicle or transfer it to someone else’s name, the insurance can also be transferred in the name of the buyer. Or else the buyer can get a new policy and get the existing policy cancelled as at least third-party Insurance is compulsory for all vehicles to go on road.

You can avail the following additional covers:

Electrical and electronic items
Cars with LPG/CNG fuel tank
Cars with fibre glass Fuel tank
Personal accident cover
Legal liability to employee, paid driver, cleaner and conductor
Racing, speed tests, dexterity trails and hill climbing extensions.

In case you have customized your vehicle for better, i.e., installed approved anti-theft devices, you would be eligible for a discount on premium.
In case you have got adverse items and fittings done to your vehicle, which will increase threat, you will have to take add-on covers by paying additional premiums.

In case you are a recognized member of the Automobile Association of India, many insurers would provide with a discount on premium, especially OD premium.

The premium that you pay to the insurer over and above the mandatory third-party liability cover for covering any damage to the insured vehicle is called the ‘Own Damage’ premium.

IDV is Insured Declared Value, which is the sum assured in case of life insurance. It reduces with age. It is the depreciated value of the vehicle and can be increased or decreased depending upon the condition of your vehicle. You can also get your vehicle for a value higher than IDV calculated on basis [...]

Premium is calculated on the basis of following factors:

Insured declared value is decided on the basis of manufacturer’s listed selling price of the brand and model of vehicle. It is actually the depreciated value of your vehicle decided by manufacturer and policyholder.
Cubic capacity of the vehicle
For the purposes of rating, India has been divided into [...]

In insurance terms, you are the first party, the insurer is the second party, and any other party involved in the accident is the third party