Motor Insurance
Third-party motor insurance is compulsory by law in India. Comprehensive cover is not compulsory, but it is the part that pays when your own vehicle is damaged or stolen.
Placed by Naveen Kumar Pandey, IRDAI-licensed insurance agentNo consultation fee
What this actually is
A third-party policy covers your legal liability for injury, death or property damage you cause to someone else. It is the legal minimum under the Motor Vehicles Act, and driving without it is an offence. It pays nothing at all towards your own vehicle.
A comprehensive policy adds own-damage cover: accident damage, fire, theft and natural calamities to your own vehicle, alongside the third-party section. The own-damage claim is settled against the vehicle's Insured Declared Value, which falls each year with depreciation.
Add-ons are where most of the practical difference lies. Zero-depreciation means parts are settled without deducting depreciation, which materially changes a claim on a newer vehicle. Engine protection matters in flood-prone areas. Return-to-invoice, roadside assistance and consumables cover are all worth considering.
A no-claim bonus builds up for every claim-free year and reduces your own-damage premium. It belongs to you, not the vehicle, so it can be carried to a new car or a new insurer.
Key facts
- Our appointment
- Bajaj Allianz General Insurance, agency code BAG10104147
- Legal requirement
- Third-party cover is compulsory under the Motor Vehicles Act
- Comprehensive
- Third-party plus own damage — accident, fire, theft and natural calamity
- IDV
- The maximum payable on total loss or theft. Falls each year with depreciation
- No-claim bonus
- Builds up over claim-free years and transfers with you
- Common add-ons
- Zero-depreciation, engine protection, consumables, roadside assistance, return-to-invoice
This suits you if
- Every vehicle owner — third-party cover is a legal requirement
- Owners of newer or financed vehicles, where own-damage cover matters most
- Commercial vehicle operators
- Anyone whose policy has lapsed and needs it restored
How it works, step by step
Share the vehicle details
Registration number, make and variant, year, and your previous policy if there is one.
Set the Insured Declared Value
The IDV is the maximum payable on total loss or theft. Setting it artificially low to cut the premium costs you at claim time.
Choose add-ons deliberately
Zero-depreciation, engine protection, consumables, roadside assistance and return-to-invoice. We explain what each actually pays for.
Carry over the no-claim bonus
Your accumulated bonus transfers to a new insurer or a new vehicle. We make sure it is not lost.
At claim time
Inform the insurer immediately, and the police where required. We help with the surveyor, the garage and the paperwork.
Renew before expiry
Renewing late can mean a fresh inspection and the loss of your no-claim bonus. We remind you in advance.
What you will need
- Registration certificate (RC)
- Previous policy copy, for no-claim bonus continuity
- Driving licence
- PAN and Aadhaar
- For a new vehicle: the invoice and delivery note
Do not have all of it to hand? Send what you have — we will tell you what is still needed.
What can go wrong
Every product has a downside. Here is this one's, in plain language, before you decide anything.
- Insurance is the subject matter of solicitation. Read the policy wording before concluding a sale.
- A third-party-only policy pays nothing towards your own vehicle, however badly it is damaged.
- Setting a low IDV reduces the premium and reduces exactly what you receive if the vehicle is stolen or written off.
- Driving without a valid licence, under the influence, or using a private vehicle commercially will normally void a claim.
- Without zero-depreciation, depreciation is deducted on plastic, rubber and metal parts, and your share of a claim can be large.
- A lapsed policy usually means a fresh vehicle inspection and the loss of accumulated no-claim bonus.
Questions people ask us about this
Is third-party insurance enough?
It is enough to be legal, and nothing more. It pays for damage you cause to others and nothing towards your own vehicle. For any vehicle you would not want to replace out of pocket, comprehensive cover is the sensible choice.
What is zero-depreciation and is it worth it?
Without it, the insurer deducts depreciation on replaced parts and you pay that share. With it, parts are settled at full value. On a newer car it usually pays for itself in a single claim.
Does my no-claim bonus transfer if I change insurer?
Yes. The bonus belongs to you, not to the insurer or the vehicle, and it can be carried across on renewal or to a new car. Bring your previous policy and we will make sure it is applied.
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Still deciding?
Ask us anything about this product — including how we are paid on it. We will answer straight.