Motor Insurance:

Motor Insurance is the largest branch of insurance. The first motor policy was introduced in 1895 to cover third party liability. By 1899 accidental damage to the car was added to the motor policy which is called now as a comprehensive policy.

In India compulsory third party insurance has been consolidated by road traffic act 1934.

The practice of motor insurance in India general follows that of the UK market.

Motor insurance policy are basically of two types.

1.Liability only policy : Liability only policy covers third party liability for body injury and/or death and property damage. Personal accident cover for owner driver(15 lakh) is also included.

2.Comprehensive and package policy : In addition to above the package policy covers loss or damage to the vehicle.

Various additional cover are also available under the vehicle package policy like :

  • Nil depreciation
  • Consumables
  • Engine protection
  • NCB retension
  • Return to invoice etc..


  1. Private cars : Used for domestic, social, pleasure purpose.
  2. Two wheelers : Used for domestic, social, pleasure purpose.
  3. Commercial vehicles : These are vehicle used as private carrier permit loss or damage to the policy covers by fire explosion, self ignition or lightning. Burglary, house breaking or theft, riots and strikes, earthquake, flood, typhoon, hurricane, storms, inundation etc.. By accidental, by malicious act by terrorist activity. While in transit by rail, road, inland, water way, lift elevator or air, by landslide, rockslide.

Motor policy excludes consequential loss, depreciation, wear and tear mechanical or electrical breakdown. Failures and breakages, damage of tyre and tube unless the vehicle is damaged at the same time.

Depreciation :

Age of the vehicle % of Depreciation
Not exceeding 6 months Nil
Exceeding 6 months but not exceeding 1 year 5%
Exceeding 1 year but not exceeding 2 year 10%
Exceeding 2 year but not exceeding 3 year 15%
Exceeding 3 year but not exceeding 4 year 25%
Exceeding 4 year but not exceeding 5 year 35%
Exceeding 5 year but not exceeding 10 year 40%
Exceeding 10 years 50%


No Claim Bonus :

The Preciding year 20%
Preciding 2 consecutive years 25%
Preciding 3 consecutive years 35%
Preciding 4 consecutive years 45%
Preciding 5 consecutive years 50%


Personal Accident cover for owner driver :-

Coverage Scale of compensation
Death 100%
Loss of 2 limbs or sight of two eyes or one limb and sight of one eye 100%
Loss of 1 limb or sight of 1 eye 50%
Permanent total disability from injuries other than named above 100%


  • Indicative claim documents required for claim settlement :
  • Policy copy,
  • RC copy,
  • Driving license.
  • FIR copy in case of body injury or property damage.