Instassure Insurance Solutions Limited

Car Insurance

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What is Car Insurance?

Car Insurance is an agreement between the vehicle owner and the insurance company. In this, you pay a premium, and the company provides financial protection against risks like accident damage, theft, fire, and third-party liability. It helps reduce financial loss and gives peace of mind.

Importance of Motor Insurance

As per the Motor Vehicle Act, 1988, every vehicle running in public places must have compulsory third-party insurance. With increasing vehicles and accident risks, motor insurance protects you from heavy repair costs and legal liability. It is both a legal requirement and an important financial protection.

Manipal Signa Health Insurance:

INR 2500

Benefits of Car Insurance Policy

Comprehensive Coverage

Provides complete protection including Own Damage and Third-Party Liability. It covers accident damage, theft, fire, natural disasters, and transit risks. Depreciation on vehicle parts is also covered as per policy terms.

Third-Party Protection

Protects you from legal and financial responsibility for injury or property damage caused to a third party, helping you avoid heavy compensation expenses.

Personal Accident Cover

Offers financial protection for the owner-driver up to ?15 Lakh. In case of permanent disability or death, the insured amount is payable as per policy rules.

Premium Calculation for Car Insurance

The premium of a car insurance policy is calculated based on several important factors:

Insured Declared Value (IDV): Based on the current value of the car after depreciation.
No Claim Bonus (NCB): Discount awarded for every claim-free year.
Age of the Vehicle: Older vehicles generally attract lower premium.
Geographical Location: Premium varies as per risk zones (higher in major cities).
Add-ons: Extra covers like zero depreciation, roadside assistance, return to invoice, etc.
Accessories: Additional fittings are calculated separately.

How Does IDV Affect Your Insurance?

Insured Declared Value (IDV) is the current market value of your vehicle. It is the maximum amount the insurance company will pay in case of total loss or theft. IDV is calculated after applying depreciation as per standard guidelines.

Depreciation Chart for Vehicles

Age of Vehicle	Depreciation
0 – 1 Year	5% (95% of invoice value)
After 2 Years	20% on previous IDV
After 3 Years	30% on previous IDV
After 4 Years	40% on previous IDV
After 5 Years	50% on previous IDV
After 6 Years	10%–15% yearly depreciation

Points to Consider Before Buying Car Insurance Add-Ons

Choosing the right add-ons can enhance your car insurance coverage. Consider the following factors before selecting additional benefits:

Vehicle Age and Model: For cars older than 5 years, Roadside Assistance and Zero Depreciation Cover are highly recommended (if available).
Location: Motorists in coastal areas should consider Engine Protection or Hydrostatic Cover due to higher risk of water damage.
Personal Usage: If you travel frequently using your own vehicle, Personal Accident Cover is strongly advisable.
Financial Protection: Add-ons like Return to Invoice and Consumables Cover help reduce out-of-pocket expenses in case of total loss or major accident damage.

Each add-on provides coverage that may not be included in a standard comprehensive policy. Therefore, carefully evaluate your driving habits, vehicle condition, and usage before selecting the most suitable add-ons.

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