Legally, no motor vehicle is allowed to be driven on the road without valid insurance. Hence, it is obligatory to get the vehicle insured. Motor insurance policies cover against any loss or damage caused to the vehicle or its accessories due to the following natural and man made calamities.
Natural Calamities: Fire, explosion, self-ignition or lightning,
earthquake, flood, typhoon, hurricane, storm, tempest, inundation,
cyclone, hailstorm, frost, landslide, rockslide.
Man made Calamities: Burglary, theft, riot, strike, malicious act,
accident by external means, terrorist activity, any damage in transit by
road, rail, inland waterway, lift, elevator or air.
Motor insurance provides compulsory personal accident cover for
individual owners of the vehicle while driving. One can also opt for a
personal accident cover for passengers and third party legal liability.
Third party legal liability protects against legal liability arising due
to accidental damages. It includes any permanent injury / death of a
person and damage caused to the property.
The vehicles are insured at a fixed value called the Insured's Declared
Value (IDV). IDV is calculated on the basis of the manufacturer's listed
selling price of the vehicle (plus the listed price of any accessories)
after deducting the depreciation for every year as per the schedule
provided by the Indian Motor Tariff. If the price of any electrical and
/ or electronic item installed in the vehicle is not included in the
manufacturer's listed selling price, then the actual value (after
depreciation) of this item can be added to the sum insured over and
above the IDV.
In case the vehicle is fitted with CNG / LPG, the CNG/LPG kit fitted to
the vehicle is to be insured separately at an additional premium.