Aditya Birla Capital Digital Limited
Motor Insurance
Secure your vehicle with a Motor Insurance policy and get covered against possible financial emergencies. Drive worry-free with comprehensive Motor Insurance solutions.
Own-damage and third party coverage- Range of add-ons for coverage enhancement
- Easy digital process
- Easy claim settlement process
Start your Motor Insurance journey
Provide your details below, and our advisors will get in touch with you
The
Product Range
We Offer
Bike insurance
KEY FEATURES
- Coverage for bikes and scooters
- Annual plans
- Instant online issuance and renewal
Car insurance
KEY FEATURES
- Get coverage for your car
- Choose from comprehensive, own damage or third-party policy
- Variety of add-ons like Roadside assistance, Zero Depreciation, etc.
Choose add-ons* for extra protection
Personal Accident Cover
Covers accidental deaths and permanent disability. Can provide upto 100% cover in case of permanent disability.
Driver Cover
Personal accident cover for a paid driver.
Engine Protection
Covers engine damages due to water seepage.
Passenger Cover
Personal accident cover for all passengers against accidental death or disability. Can cover hospitalisation, treatment, and ambulance fees.
Roadside Assistance
24/7 assistance in the case of vehicle breakdowns.
Tyre Protection
Covers tyre damages upto a specified limit.
Zero Depreciation
Gives bumper to bumper cover and also covers the depreciating value of your vehicle. Mostly available for cars up to 5 years old.
NCB Protection
Protects the accumulated No Claim Bonus even after a claim.
Consumables
Covers the cost of consumables used during repairs.
Key Protection
Covers damage to and replacement of the vehicle’s lock and keys.
Types of Motor Insurance Coverage
Different types of Motor Insurance plans have different features and benefits. Have a look at their comparative analysis.
| All Motor Insurance plans | Own damage Motor Insurance | Third-party Motor Insurance | Comprehensive Motor Insurance |
|---|---|---|---|
| Coverage | Damage to the vehicle or theft | Third-party liabilities | Own damage + third-party liabilities |
| Tenure | 1 year | 1 year, 3 years or 5 years | 1 year |
| Add-ons | Available | Limited add-ons are available | Available |
| Premium | Depends on IDV | Set by IRDAI | Depends on IDV + Third-party premium set by IRDAI |
Understanding Motor Insurance
What is Motor Insurance?
- Motor Insurance is an insurance policy for vehicles. It covers the damages that the vehicle might suffer and compensates for the financial loss.
- Motor Insurance also covers damages caused by the vehicle to third parties and pays the underlying financial liability on your behalf.
- Every vehicle is mandated to have a Motor Insurance policy to run on Indian roads legally.
What are the features of Motor Insurance?
- Comes in different variants such as third-party insurance, comprehensive insurance, standalone OD insurance, with a variety of add-on covers as well.
- Different plans for cars and bikes, coverage depends upon the age, make, condition, etc. of the vehicle.
- Coverage tenure is usually one year, but can also be purchased for a longer term.
- Covers unlimited liability for third party deaths.
- Offers cashless and reimbursement claims for hospitals in case of accidents and injuries involving any covered party.
What is covered and what is excluded in Motor Insurance?
- Third party bodily injury or death
- Third party property damage
- Damage to the vehicle due to man-made causes
- Damage to the vehicle due to natural disasters
- Accidental death or disability suffered by the owner/driver
- Theft of the vehicle
- Deliberate accidents
- Driving under the influence of alcohol or drugs
- Driving without a valid licence
- Driving outside India’s borders
- Criminal acts
- Consequential loss
- Depreciation and normal wear and tear
- Mechanical and electrical breakdown
Common Motor Insurance terminologies
IDV
Stands for Insured Declared Value. It represents the vehicle’s value after factoring in age-based depreciation.
Compulsory deductible
The part of claim which is compulsorily borne by the policyholder while the insurer pays the rest.
Voluntary deductible
The part of claim which you voluntarily undertake to pay from your pockets over and above the compulsory deductible.
Add-ons
Optional coverage features that enhance the scope of the policy and are available at an additional premium.
No Claim Bonus (NCB)
Premium discount allowed on renewals for not making claims in the previous policy years.
Add-ons
Optional coverage features that enhance the scope of the policy and are available at an additional premium.
What factors affect the Motor Insurance premium?
Type of policy
Comprehensive plans charge a higher premium than third-party plans.
IDV
Higher the IDV, higher the premium.
Engine
Petrol and diesel engines have different impacts on premium.
Add-ons
Add-on covers come with an extra cost.
Available discounts
Discounts reduce the overall premium.
Age of the vehicle
Older the vehicle, lower the premium.
Registration location
Vehicles in metros attract higher premiums.
Claim history
Premiums are higher if claims have been made in past years.
Make, model and variant
It determines the vehicle’s value which affects the premium.
How is the IDV calculated under Motor Insurance plans?
IDV is calculated by the following formula
IDV = (manufacturing company’s listed selling price - depreciated value) + (value of vehicle accessories - depreciation of accessories)
Depreciation is determined as follows
| Age of the vehicle | Depreciation rate |
|---|---|
| Less than 6 months | 15% |
| More than 6 months but less than a year | 5% |
| More than a year but less than 2 years | 20% |
| More than 2 years but less than 3 years | 30% |
| More than 3 years but less than 4 years | 40% |
| More than 4 years but less than 5 years | 50% |
| More than 5 years | Agreed mutually between the policyholder and insurance company |
How much No Claim Bonus is available under Motor Insurance plans?
- After one claim-free year – 20%
- After two successive claim-free years – 25%
- After three successive claim-free years – 35%
- After four successive claim-free years – 45%
- After five successive claim-free years – 50%
FAQs on Motor Insurance
Your Motor Insurance coverage is usually effective for 12 months from the commencement date (or as indicated on your policy schedule). However, third party coverage for new vehicles is for 3 and 5 years for car and bike respectively.
The vehicle’s insurance covers it, as liability follows the vehicle. So, if someone else is driving with your permission, your bike/car insurance applies.
Yes, if you sell your car or bike, you can transfer the insurance to the buyer. The new owner needs to apply for the transfer within 14 days of getting the vehicle in their name. They'll also need to pay the premium for the remaining policy period.
NCB stands for No Claim Bonus. It's a reward for vehicle owners who haven't made any claims in the previous policy year. You can accumulate it over time. If you have not made a claim in the previous policy year, you get a discount of 20-50% on the own damage premium for your vehicle.
Yes, according to the Motor Vehicle Act, every vehicle on the road must be insured, at least with a liability-only policy.