Question 1

Is car insurance mandatory in India?

Accepted Answer

Third-party motor insurance is compulsory under the Motor Vehicles Act. Comprehensive insurance adds own-damage cover and is strongly recommended for new and financed vehicles.

Question 2

What is IDV in car insurance?

Accepted Answer

Insured Declared Value (IDV) is the maximum sum the insurer pays if your vehicle is totalled or stolen. It is adjusted each renewal based on depreciation.

Question 3

What is No Claim Bonus (NCB)?

Accepted Answer

NCB is a discount on own-damage premium for claim-free years, up to 50% after five consecutive claim-free renewals. A claim usually resets NCB on the own-damage portion.

Question 4

What is zero depreciation add-on?

Accepted Answer

Zero dep cover pays full cost of replaceable parts without depreciation deduction on approved claims. It suits new cars but increases premium.

Question 5

When should I renew car insurance?

Accepted Answer

Renew before expiry to avoid a break in policy and loss of NCB. Driving without valid third-party insurance can lead to fines and legal liability.

Car Insurance Plans in India

Car Insurance plans

Frequently Asked Questions