Car Insurance

Protect your vehicle and finances with comprehensive motor insurance coverage. Mandatory protection that gives you peace of mind on the road.

What is Motor Insurance?

Understanding the importance of car insurance in India

All of us are aware that motor insurance policies are mandatory in India. No car can be driven without insurance. Motor insurance means insuring the financial risk involved while operating the car. The car might meet with any damages, accident or may be lost or stolen.

In such a situation the losses borne by the owner may be compensated by the insurance company if the same is covered under motor insurance policy.

Legal Requirements

Understanding Motor Vehicles Act provisions

Mandatory Coverage

Under the provisions of Motor Vehicles Act, all the vehicles operating in public places should have car insurance policy at least to cover 'third party liability'. It means that a Motor insurance policy must cover third party in case of any accident. It may or may not cover the damages of the owner of the car!

Types of Motor Insurance

Two basic types of motor insurance policies available

Third Party Liability Coverage

Under 'third party liability coverage', only damages of third party are covered in an accident in a public place for which the owner is liable and not the owner's damage.

✓ Mandatory by law

✓ Covers third party damages only

✗ Does not cover owner's vehicle

Comprehensive Plan

Under 'comprehensive plan', owner's damages are also covered along with 'third party liability coverage'.

✓ Includes third party coverage

✓ Covers owner's vehicle damage

✓ Theft and natural calamity protection

Important Points to Remember

Key information about motor insurance policies

Policy Validity

A policy is valid from the moment a premium is required – from midnight till exactly a year later.

No Grace Period

It is advisable to get a policy renewed well in advance, as there is no grace period whatsoever and the fine for driving without insurance is severe.

Premium Payment

The policy is deemed to be renewed from the day that the cheque for the premium is posted by the bank. It is advisable to get a receipt from the bank.

No-Claim Bonus

A vehicle owner is eligible for no-claim bonus if adjusted against the premium of his new vehicle, even if the past vehicle is sold, within three years.

Vehicle Transfer Guidelines

Important information for buying and selling vehicles

For New Vehicle Buyers

A person purchasing a new vehicle should inform the insurance company within 14 days to have papers transferred to his name.

⏰ 14-day deadline

📋 Transfer insurance papers

For Vehicle Sellers

When a vehicle is sold, the previous owner should inform the insurance company of its sale too.

📞 Notify insurance company

📝 Update vehicle sale status

Need Car Insurance?

Get the right motor insurance coverage for your vehicle today