When it comes to insurance, curiosity will not kill the cat. In fact, it will only help you make better and informed decisions. There is so much jargon that the industry throws at you and we know it can get confusing. Here is a list of some commonly asked questions that can help you understand your coverage better. Please scroll down to read more.


As per the Motor Vehicle Act, third party liability insurance IS MANDATORY for all vehicles. Third party liability in motor insurance means the liability for injuries and damages to others that YOU are responsible for. While third party liability is compulsory, it is wise to buy a comprehensive/ package policy which covers third party liability and also own damage (loss or damage to your vehicle itself).

Zero deprecation is an add on cover that can be bought on payment of additional premium. As the name suggests, if you have bought a zero dep policy, at the time of claim, you don’t have to pay for any deprecation and are eligible for full claim amount depending on the terms of the policy.

NCB stands for No Claim Bonus. On renewal of an expiring policy, in case you have zero claims the previous year, you are eligible for a standard discount % on own damage premium. This discount keeps on adding each year in case no claims are made to a maximum of 50%. See the table below:

Condition % of discount on Own Damage Premium
No claim made in the preceding year 20%
No claim made in the preceding 2 consecutive years 25%
No claim made in the preceding 3 consecutive years 35%
No claim made in the preceding 4 consecutive years 45%
No claim made in the preceding 5 consecutive years 50%

Yes. The NCB discount % is transferrable if you wish to change your insurer at the time of renewal. The new insurer might ask you for a renewal notice from your previous insurer as an evidence.

A comprehensive policy only covers third party liability and damage/loss to own vehicle. However, by paying extra premium to the insurer, one can get some additional benefits that are otherwise not covered. These are called add on covers and generally include road side assistance, zero depreciation, engine protection, tyre protection, NCB protection, consumables protection, return to invoice.

Return to Invoice (RTI), is an add-on that can be bought by payment of additional premium. If bought, at the time of claim, this covers the difference between IDV and the invoice value of the car. This can help the insured get the entire amount of loss equivalent to the on road price you paid for your car!

While the list of consumables is an extensive one, most common consumable items include nuts, bolts, screws, washers, brake oil, engine oil, gearbox oil, power steering oil, radiator and AC gas, oil filters, wheel balancing weights and items of similar nature.

An expiring policy can be renewed anytime before 90 days of expiry.

Expired policy can also be renewed. However, the insurance company will either ask for self inspection or depute someone for inspection. Post the inspection of the vehicle to be insured and other formalities, new policy can be issued.

IDV is the short form of Insured’s Declared Value. It is the considered sum insured amount that is fixed at the beginning of the policy period for an insured vehicle. This amount is fixed on the basis of manufacturer’s listed selling price of the same brand and model as the vehicle to be insured at the time of commencement of the policy/ renewal and adjusted for depreciation.

In case of claim, the documents usually required include duly filled in claim form, original estimate of loss, original repair invoice, RC copy of the vehicle and payment receipt. In case cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims, the keys are to be submitted. Theft claims would also require non-traceable certificate to be submitted.