Motor & Commercial Vehicle Insurance

From two-wheelers to heavy commercial vehicles — understand your coverage options, legal requirements, and how to protect your vehicle and business assets.

Motor Insurance in India — What the Law Requires

Under the Motor Vehicles Act, 1988, third-party motor insurance is mandatory for all vehicles plying on Indian roads. Driving without valid insurance is a punishable offence with fines and potential imprisonment.

While third-party cover is the legal minimum, a comprehensive policy protects your own vehicle against damage, theft, and natural calamities — providing complete financial protection.

Motor Insurance Categories

Third-Party Liability Insurance

Mandatory by law. Covers legal liability arising from injury, death, or property damage caused to a third party by your vehicle. Does not cover damage to your own vehicle.

Best for: All vehicle owners (minimum legal requirement)

Mandatory under Motor Vehicles Act, 1988

Unlimited liability for third-party death/injury

Third-party property damage covered up to ₹7.5 lakh

Premium rates regulated by IRDAI

Comprehensive Motor Insurance

Covers both third-party liability and own damage. Protects your vehicle against accidents, theft, fire, natural calamities (flood, earthquake), and man-made calamities (riots, strikes).

Best for: New vehicles, financed vehicles, vehicles in high-risk areas

Own damage cover for accidents, theft, fire, flood

Third-party liability included

No-claim bonus (NCB) up to 50% discount on renewal

Add-ons: zero depreciation, engine protect, roadside assistance

Own Damage (OD) Cover

Standalone own damage cover for vehicles that already have long-term third-party insurance. Covers repair or replacement costs for your vehicle due to accidents, theft, or natural disasters.

Best for: Vehicles with existing long-term third-party policy

Can be purchased separately from third-party cover

Insured Declared Value (IDV) determines maximum claim amount

Depreciation applied on parts unless zero-dep add-on taken

NCB benefit applies on renewal

Commercial Vehicle Insurance

Covers vehicles used for commercial purposes — goods carriers, passenger vehicles, taxis, buses, and construction equipment. Includes both third-party and own damage cover with higher sum insured limits.

Best for: Fleet owners, logistics companies, taxi operators, bus operators

Covers goods carrying vehicles, passenger vehicles, miscellaneous vehicles

Goods in transit cover available as add-on

Fleet discount for multiple vehicles under one policy

Driver and passenger personal accident cover included

Two-Wheeler Insurance

Specifically designed for motorcycles and scooters. Available as third-party only or comprehensive cover. Long-term policies (5 years for new two-wheelers) are mandatory as per IRDAI guidelines.

Best for: Motorcycle and scooter owners

5-year third-party cover mandatory for new two-wheelers

Comprehensive cover available on annual basis

Personal accident cover for owner-driver included

Add-ons: zero depreciation, roadside assistance, consumables cover

Popular Add-On Covers

Zero Depreciation

Claim full repair cost without depreciation deduction on parts. Highly recommended for new vehicles.

Engine Protection

Covers engine damage due to water ingression or oil leakage — not covered under standard policy.

Roadside Assistance

24/7 emergency assistance including towing, flat tyre, fuel delivery, and key replacement.

Return to Invoice

In case of total loss or theft, receive the original invoice value instead of depreciated IDV.

Consumables Cover

Covers cost of consumables like engine oil, nuts, bolts, and screws during repairs.

NCB Protect

Protects your No-Claim Bonus even after making one claim during the policy year.

Motor insurance is subject to IRDAI regulations. Premium rates for third-party cover are fixed by IRDAI. Own damage premiums vary by insurer. Please read the policy document carefully.

Get the Right Motor Insurance Cover

Let us help you choose the right policy with the right add-ons at the best premium. Book a free consultation today.

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