Question 1

What is IDV in car insurance?

Accepted Answer

IDV (Insured Declared Value) is the maximum amount the insurer pays if your car is totalled or stolen. It is the ex-showroom price minus age-based depreciation — roughly 95% in year 1, falling to ~40-50% after 5 years. Higher IDV = higher own damage premium but better claim payout.

Question 2

What is the difference between third-party and comprehensive car insurance?

Accepted Answer

Third-party (TP) covers damage you cause to others — legally mandatory in India with fixed premiums. Comprehensive adds own damage cover for your car (accidents, theft, fire, natural calamities) plus add-ons. Comprehensive costs roughly 3-4% of IDV plus the TP premium.

Question 3

How does No Claim Bonus (NCB) work?

Accepted Answer

For every claim-free year your own damage premium drops: 20% after 1 year, 25% after 2, 35% after 3, 45% after 4, up to 50% after 5 years. NCB transfers when you switch insurers and is lost if you file a claim — sometimes it is cheaper to pay small repairs yourself.

Question 4

Is zero depreciation add-on worth it?

Accepted Answer

Yes for new cars (0-3 years). Instead of deducting depreciation on replaced plastic/rubber parts, the insurer pays full cost. It adds ~15% to the own damage premium. After the car is 4-5 years old the value drops and the add-on is less worth it.

Question 5

What is the third-party car insurance premium in India?

Accepted Answer

IRDAI-approved annual rates are roughly: cars up to 1000cc ₹2,074, 1000-1500cc ₹3,097, above 1500cc ₹7,908 (2024-25). These are fixed by the regulator and do not vary by insurer or NCB.

Question 6

Can I buy car insurance without a policy?

Accepted Answer

No. Driving without third-party insurance is illegal in India (Motor Vehicles Act 1988) with penalties up to ₹4,000 and 3 months imprisonment for first offence. Renew before expiry — lapsed policies lose NCB and long-term discounts.

Question 7

What is GST on car insurance?

Accepted Answer

18% GST applies on the total premium (third-party + own damage + add-ons). Electric vehicles get a long-term package policy option with 15-25% lower own damage premiums.