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About Motor Insurance

Private car insurance policy provides coverage for loss of or damage to your vehicle against the risk of accident, fire, theft, floods, earthquake, riot, strike etc. The policy also gives coverage for your liability arising out of death, injury to third party and/ or third property damage.


Ø  Loss or damage by accident, fire, lightening, self-ignition, external explosion, burglary, housebreaking or theft, malicious act

Ø  Riot and strike; terrorism; earthquake; flood, cyclone and inundation

Ø  Whilst in transit by rail, road, air, elevator, lift

Ø  Liability for third party injury /death, third party property damage


Ø  Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage.

Ø  When vehicle is used outside the geographical area

Ø  When used contrary to limitation as to use as written in the policy and/or as mentioned in the registration certificate of the vehicle

Ø  When vehicle is driven by a person who is not licensed to drive and/ or disqualified from holding a license

Ø  War perils, nuclear perils and drunken driving.

What Will Policy Pay And How Much?

Ø  Actual amount spent for repairs/replacement subject to depreciation in case of partial loss. However in case of total loss, due to theft or damage beyond repair, the value declared in the policy is payable.

Add on covers

On payment of additional premium:

Ø  Loss of or damage to electrical/ electronic accessories can be covered

Ø  This policy can be extended to cover Liability to Paid driver, other employees

Ø  Personal Accident cover can be given to passengers of the car on a named or unnamed basis, the number of passengers being limited to the registered seating capacity of the car

Ø  NIL Depreciation cover

Ø  Special type of package policies from different Insurers

Discount Available

Ø  If you maintain the vehicle in proper condition and prevent any loss or damage, then you are eligible for No Claim Discount ranging from 20 to 50%

Ø  As a member of Automobile Association of India you will be eligible for a discount of 5%

Ø  Plus special discount in the new Detariff market


Ø  You should truthfully declare all the facts about yourself and your motor vehicle to us

Ø  You should maintain the vehicle in efficient condition and in case of accident/ breakdown, do not leave your vehicle unattended

Ø  More importantly, you should not drive the vehicle without getting necessary repair done






Not exceeding  6 months


Exceeding 6 months but not exceeding 1 year


Exceeding 1 year  but not exceeding  2 years


Exceeding 2 years  but not exceeding  3 years


Exceeding 3 years  but not exceeding  4 years


Exceeding 4 years  but not exceeding  5 years




Depreciation on Parts for Partial Loss Claims


The following rates of depreciation shall apply  for replacement of parts for partial loss claims in respect of all categories of vehicles / accessories.



Rate of  depreciation for all rubber    nylon/ plastic parts, tyres and tubes, batteries and air bags              -          



Rate of  depreciation for all  fibre glass components                                -          



Rate of  depreciation for all  parts made of glass                                            -         



Rate of  depreciation for all other parts including wooden parts is to be as per the following  schedule





Not exceeding  6 months



Exceeding 6 months but not exceeding 1 year



Exceeding 1 year but not exceeding 2 years



Exceeding 2 years but not exceeding 3 years



Exceeding 3 years but not exceeding 4 years



Exceeding 4 years but not exceeding 5 years



Exceeding 5 years but not exceeding 10 years



Exceeding 10 years



     No Claim Bonus, wherever applicable, will be as per the following table.   


All types of Vehicles

% of  Discount on Own Damage premium

No claim made or pending during the preceding full year of insurance



No claim made or pending during the preceding 2 consecutive years of insurance



No claim made or pending during the preceding 3 consecutive years of insurance


No claim made or pending during the preceding 4 consecutive years of insurance


No claim made or pending during the preceding 5 consecutive years of insurance




On transfer of ownership, the Liability Only cover, either under a Liability Only policy or under a Package policy, is deemed to have been transferred  in favour of the   person to whom the motor vehicle is transferred with effect from the date of transfer. The transferee shall apply within fourteen days from the date of transfer in writing under recorded delivery  to the insurer who has insured the vehicle, with the details of the registration of the vehicle, the date of transfer of the vehicle, the previous owner of the vehicle and the number and date of the insurance policy so that the insurer may make the necessary changes in his record and issue fresh Certificate of  Insurance.

 Change of Vehicle

 A vehicle insured under a policy can be substituted by another vehicle of the same class for the balance period of the policy subject to adjustment of premium, if any, on pro-rata basis from the date of substitution.  Where the vehicle so substituted is not a total loss, evidence in support of continuation of insurance on the substituted vehicle is required to be submitted to the insurer before such substitution can be carried out. 

 Double Insurance

When two policies are in existence on the same vehicle with identical cover, one of the policies may be cancelled. Where one of the policies commences at a date later than the other policy, the policy commencing later is to be cancelled by the insurer concerned.


     Ø  Type of Vehicle

Ø  Year of manufacture

Ø  Cubic Capacity/Passenger/Laden weight

Ø  Geographical area

Ø  Existing claims /NCB

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