India Motor Vehicle Insurance Guide
Compare Third-Party vs Comprehensive Policies for All Vehicle Types
Policy Overview
Policy Comparison
Premium Calculator
Policy Recommender
Third-Party Insurance Policy (Mandatory)
This is the minimum legal requirement for all vehicles in India under the Motor Vehicles Act, 1988.
Key Features:
- Covers damages/injuries caused to third parties (other people, vehicles, or property)
- Does not cover damages to your own vehicle
- Unlimited liability coverage for death/permanent disability
- Up to ₹10 lakhs for partial disability
- Up to ₹1.5 lakhs for property damage (per accident)
- Fixed premium rates set by IRDAI (no variation based on vehicle age)
- No Claim Bonus (NCB) does not apply
Best For:
Old vehicles (10+ years) where repair costs exceed market value, or budget-conscious owners who only want legal compliance.
Comprehensive Insurance Policy (Recommended)
This provides complete coverage including both third-party liability and own damage protection.
Key Features:
- Covers third-party liability (same as standalone policy)
- Own Damage (OD) cover for accidents, collisions, fire, theft
- Natural disasters (floods, earthquakes, cyclones)
- Man-made disasters (riots, terrorism)
- Personal Accident Cover for owner-driver (usually ₹15 lakhs)
- Optional Add-On Covers available
- Premium depends on IDV (Insured Declared Value)
- No Claim Bonus (NCB) discount up to 50% on renewal
Available Add-Ons:
- Zero Depreciation Popular
- Engine Protection (Water ingress/damage)
- Roadside Assistance (Towing, flat tire help)
- NCB Protection (Retains NCB after a claim)
- Return to Invoice
- Key Replacement
Best For:
New vehicles (0-5 years) with high repair costs, luxury/expensive vehicles, or loan-financed vehicles (banks mandate comprehensive policy).
Third-Party vs Comprehensive Policy Comparison
| Factor | Third-Party Policy | Comprehensive Policy |
|---|---|---|
| Coverage | Only third-party damages | Own + Third-party damages |
| Premium Cost | Low (Fixed by IRDAI) | High (Depends on IDV) |
| Add-Ons Available | No | Yes (Zero Dep, RSA, etc.) |
| NCB Benefit | No | Yes (Up to 50% discount) |
| Best For | Old vehicles, budget buyers | New/expensive vehicles |
Third-Party Premium Rates (2025)
| Vehicle Type | Engine Capacity | Annual Premium (₹) |
|---|---|---|
| Two-Wheeler | ≤ 75cc | 1,366 |
| Two-Wheeler | > 75cc | 2,072 |
| Private Cars | ≤ 1000cc | 2,094 |
| Private Cars | 1000-1500cc | 3,416 |
| Private Cars | > 1500cc | 7,897 |
| Commercial Vehicles | Varies by type | Higher than private |
Insurance Premium Calculator
Estimated Premium
Policy Recommendation Based on Vehicle Age
| Vehicle Age | Recommended Policy | Why This Policy? |
|---|---|---|
| 0-5 Years | Comprehensive + Add-Ons | High repair costs, theft risk, full coverage needed. Add-ons like Zero Depreciation provide maximum protection. |
| 5-10 Years | Comprehensive (Basic) | Moderate IDV, but still worth covering damages. Consider dropping expensive add-ons as vehicle depreciates. |
| 10+ Years | Third-Party Only | Low IDV, repairs may exceed vehicle value. Only maintain legal minimum coverage. |
How IDV (Insured Declared Value) Changes With Age
IDV is the maximum amount your insurer will pay if your vehicle is totaled or stolen.
| Vehicle Age | Depreciation % | Impact on Premium |
|---|---|---|
| 0-6 Months | 0% (Full IDV) | Highest Premium |
| 6 Months - 1 Year | 15% | Slightly Reduced |
| 1-2 Years | 20% | Lower Premium |
| 2-5 Years | 30-40% | Moderate Premium |
| 5+ Years | 50%+ | Cheapest Premium |
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