Frequently Asked Questions (FAQs)- Motor


What does Motor Insurance Package (Comprehensive) policy offer to insured?

The Motor insurance Package (Comprehensive) policy provides coverage under two Sections: 1. Own Damage and 2. Third Party Liability.


The Own Damage Cover will cover the cost of repairs to the vehicle if it is damaged in an accident.


Under the Third Party Only Cover, we cover you against any loss caused to a third party in an accident.


There are also different add-on covers available such as:

What are the different types of Insurance policies available? Is it compulsory to take a comprehensive cover?

You can either opt for a Third Party Cover or a Comprehensive Policy. In India, it is compulsory to have a Third Party Policy that covers you against legal liability for injury or death or property damage caused to any third party in an accident. This policy does not cover damages or loss caused to insured’s vehicle in an accident or theft.


Whereas a comprehensive policy, offers both third party liability and own damage cover which gives protection against legal liability as well as insures your vehicle against any loss or damage. It is not compulsory to have a comprehensive cover, though; it is advisable to have one.


What is meant by IDV?

IDV means Insured's Declared Value. It is the value of the vehicle, which is arrived at by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage as prescribed in the India Motor Tariff.


For the vehicles that are obsolete and aged over 5 years, the IDV will be the value agreed between the Insurer and the Insured.


What is a Cover Note?

A cover note is a temporary certificate of insurance (form 52) issued by the Insurer before the issuance of a policy, after the Insured has given a duly filled in proposal form and has paid the premium.


A cover note is valid for a period of 60 days from the date of issue of the cover note.


Can the music system or other accessories be insured?

Accessories can be insured under a comprehensive policy with an additional premium. Incase these are factory fitted they are automatically insured under the policy however insured needs to insure them separately if those are installed later. Insured will have to pay additional premium to cover the accessories in motor insurance policy.


What is Personal Accident Cover for Owner-Driver cover under a policy?

This cover is applicable only if the vehicle is registered in name of any individual.
The Personal accident cover covers risks like:

What is the geographical area where the policy is valid?

The policy is valid in the whole of India but extension can covered for Bangladesh / Bhutan / Nepal / Sri Lanka / Pakistan / Maldives with an extra premium.


How insured can obtain a duplicate policy? What are the charges?

A duplicate copy of the insurance policy can be obtained at a nominal fee of Rs.50/-.


What is NCB?

NCB stands for No Claim Bonus. If you do not make a claim during the policy period (365 days), a No Claim Bonus (NCB) is offered on renewals. This discount can go as high as 50%. (NCB will only be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy.)


The NCB applies to a particular policyholder and not to a particular vehicle. The motor tariff prescribes the table of discounts for calculating NCB.


What about NCB if I change insurance company at the time of renewal of policy

You can transfer full benefits of No Claim Bonus when you shift your motor insurance policy from pne company to another.


Why should a policy be renewed before its expiry date?

It is advisable to renew the policy much before the renewal date. There are certain benefits of doing so:

1. Insured will continue to enjoy no claim bonus.

2. Insured will not have to get inspection done at the time of renewal.


Whether motor premium can be paid in installments?

As this class of insurance is tariff regulated, it is not permissible to accept premium in installments. In fact as per Sec 64 VB of Insurance Act '1938 like other insurance premium , motor premium also is to be paid in advance before commencement of risk.


What is Automobile Association membership discount?

If you are a member of a recognized Automobile Association in India you can avail a discount of 5% on the OD Premium subject to a maximum of Rs. 200.


What is personal accident Cover to unnamed passengers?

You can also opt for personal accident cover of up to Rs. 2 Lakhs for other unnamed passengers in your car. You can cover number of passengers as per the seating capacity of the vehicle.