Private Car & Bike Insurance
Protect your car and two-wheeler with the right cover. Understand third-party vs comprehensive, IDV, NCB and add-ons — and get expert guidance to choose, buy and claim smartly.
Car & bike insurance — the basics
Whether you ride a scooter or drive a sedan, motor insurance does two jobs: it covers your legal liability to others, and (if you choose) it protects your own vehicle against damage and theft. Under the Motor Vehicles Act, 1988, at least third-party cover is mandatory for every car and two-wheeler on Indian roads.
The smart choice for most private owners is a comprehensive policy with the right add-ons — it keeps you legal and shields you from repair and theft bills that can run into lakhs. This page explains every term so you renew with confidence, not confusion.
Policy types for private vehicles
| Policy | What it covers | Best for |
|---|---|---|
| Third-Party (Liability Only) | Injury/death & property damage to others (property capped at ₹7.5 lakh). Not your own vehicle. | Old vehicles; bare legal compliance |
| Comprehensive (Package) | Third-party + own-damage (accident, theft, fire, flood, riot). | Most private cars & bikes |
| Standalone Own Damage | Only own-damage; bought with a separate TP policy. | When TP & OD renewals differ |
Third-party vs comprehensive — which to choose?
Third-party is cheaper and legally sufficient, but it pays nothing towards your own car or bike. If your vehicle is damaged, stolen, or caught in a flood, you bear the entire cost. Comprehensive costs a little more but covers your own vehicle too — usually the wiser choice unless your vehicle is very old and low in value.
Not sure which cover fits your vehicle?
Ask Binod →What is IDV (Insured Declared Value)?
IDV is the current market value of your vehicle and the maximum amount the insurer pays if it's stolen or declared a total loss. A new vehicle retains most of its value, and IDV falls with age. For vehicles older than five years, IDV is mutually agreed.
- Don't under-declare IDV to save premium — it cuts your payout on total loss/theft.
- Don't over-declare either — insurers cap it to a fair market value.
- A fair IDV means a fair claim. I help you set it right.
No Claim Bonus (NCB)
NCB is a discount on your own-damage premium for every claim-free year — it can grow substantially over consecutive years. Key points:
- NCB applies only to own-damage/comprehensive policies, not third-party-only.
- It belongs to you, not the vehicle — transferable to a new vehicle and across insurers.
- Renew within 90 days of expiry to keep it; delay beyond that and you lose it.
- Avoid small claims — one claim can wipe out years of accumulated NCB. An NCB Protection add-on can shield it.
Best add-ons (own-damage)
🛡️ Zero Depreciation
No depreciation deducted on parts at claim — essential for vehicles under 5 years.
⚙️ Engine Protection
Covers engine damage from water ingress/oil leak — vital in flood-prone areas.
🚨 Roadside Assistance
24×7 towing, jump-start, fuel, flat-tyre and lockout help.
🧾 Return to Invoice
On total loss/theft, pays the original invoice price, not depreciated IDV.
🔧 Consumables
Reimburses oil, nuts, bolts, coolant used during repair.
🏆 NCB Protection
Preserves your No Claim Bonus even after a claim.
🔑 Key Replacement
Covers cost of lost or stolen keys.
👥 Passenger / Pillion Cover
Accident cover for co-passengers or the pillion rider.
Mandatory owner-rider Personal Accident (PA) cover
A compulsory Personal Accident cover for the owner-driver/rider is required with motor policies, covering accidental death and permanent disability. It can be waived only if you already hold an adequate standalone PA policy. This is a small but important protection for you personally — not just your vehicle.
Want the right add-ons without overpaying?
Get advice →How to claim — step by step
Accident / own-damage claim
- Intimate immediately: Inform the insurer (and me) right after the incident, before starting any repair.
- Survey: A surveyor inspects the damage — don't begin repairs until this is done.
- Documents: Submit the claim form, RC, driving licence and policy copy.
- Repair & settle: Get repairs at a network garage for cashless, or pay and claim reimbursement.
Theft claim
- File an FIR at the nearest police station immediately.
- Intimate the insurer without delay, with policy and vehicle details.
- Submit documents: RC, both sets of keys, policy, FIR copy and claim form.
- Non-Traceable Certificate: After police investigation, submit the NTC; the claim is then settled at IDV (less deductible).
Mistakes to avoid
- Under-declaring IDV — reduces your payout on total loss/theft.
- Skipping zero-dep on a new vehicle — costs you on every claim.
- Letting the policy lapse — fresh inspection, lost NCB, and illegal to drive.
- Claiming tiny amounts — destroys NCB built over years.
- Starting repairs before survey — claim can get rejected.
- Not comparing at renewal — you may lose meaningful savings.
Frequently asked questions
Is car/bike insurance mandatory in India?
What is the difference between third-party and comprehensive?
What is IDV in motor insurance?
What is No Claim Bonus (NCB)?
Does NCB apply to third-party insurance?
What is zero depreciation cover?
Is zero-dep worth it for an old vehicle?
What is engine protection cover?
What is return to invoice (RTI)?
What is the property damage limit in third-party?
Is personal accident cover mandatory?
Can I transfer NCB to a new vehicle?
What happens if my policy lapses?
How do I claim after an accident?
How do I claim for a stolen vehicle?
What documents are needed for a motor claim?
Should I claim for small damages?
What is a standalone own-damage policy?
Do new vehicles have long-term insurance?
How is bike insurance different from car insurance?
Can I insure an electric car or e-scooter?
What affects my premium?
Can I pay premium in instalments?
How early should I renew?
Can you help me choose and claim?
Related insurance & guides
Insure your car or bike the smart way
Free quote · right add-ons · best value · end-to-end claim help — for car and two-wheeler owners across Delhi NCR and India.
Disclaimer & compliance: Binod Kumar Shukla provides insurance advisory and policy assistance for multiple insurers. Policies are issued subject to the underwriting guidelines of the respective insurance companies, and premiums are governed by the insurer and IRDAI regulations. Third-party premiums are fixed by IRDAI and revised periodically. Policy issuance and claim settlement are subject to insurer underwriting terms and IRDAI regulations. Insurance is the subject matter of solicitation. This page is for information only and does not constitute a contract of insurance.