In this guide
Insurance is mandatory for every vehicle on the road, but the type and level of cover you choose affects how well you are protected.
Third-party vs comprehensive
Third-party insurance is the legal minimum and covers injury or damage you cause to others. Comprehensive insurance covers that plus damage to your own vehicle from accidents, fire, theft and natural calamities. Financed vehicles require comprehensive cover.
IDV — Insured Declared Value
IDV is the vehicle's current market value as agreed with the insurer and is the most you can receive for total loss or theft. Setting it too low reduces your premium but also your payout.
No Claim Bonus (NCB)
A discount on your own-damage premium for every claim-free year. NCB belongs to you and can usually be transferred to a new vehicle or a new insurer.
Add-ons to consider
- Zero depreciation: avoids depreciation deductions on replaced parts — often valuable for newer vehicles.
- Engine protection, return-to-invoice, roadside assistance, consumables: useful in specific situations. Read the exclusions.
How to compare policies
- Compare the same IDV and add-ons across insurers, not just the premium.
- Look at claim settlement track record and cashless-garage network near you.
- Read exclusions and deductibles before buying.
Renew on time — a lapse in cover can cost you your NCB and require an inspection.