Car insurance follows the motor insurance rules: third-party cover is required, and own-damage cover protects your car. A new car is sold with long-term third-party cover (three years), while own-damage cover can be yearly.
Add-ons change what you receive on a claim far more than small premium differences. Read what each add-on pays and how many claims it allows.
The general rules are explained on Motor insurance.
Products
No products are listed in this category yet. Products appear here only after Finobazaar has reviewed them against the insurer's documents; we do not show invented products or prices.
What policies usually cover
- Third-party liability
- Accident damage, theft, fire and natural perils listed in the policy (own damage)
- Add-ons such as zero depreciation, engine protection, return to invoice, consumables and roadside assistance
Your policy wording lists exactly what is covered, the limits and the exclusions.
What to check before you buy
- Whether the third-party part of a new car's policy is already paid for three years
- IDV compared with the car's market value
- Depreciation on parts if you do not take zero depreciation
- Compulsory and voluntary deductibles
- NCB transferred from your previous policy
Key terms
- Zero depreciation
- An add-on under which the insurer does not deduct depreciation on replaced parts, within the add-on's limits.
- Return to invoice
- An add-on that pays up to the invoice value instead of the IDV for a total loss or theft, as set in its terms.
- Deductible (excess)
- The part of each own-damage claim you pay yourself.
Rules that apply
- Long-term third-party premiums for new private cars (three years) are set in the same government notification as yearly premiums. [1]
Rules referred to
- Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022 (G.S.R. 394(E), 25 May 2022)
Third-party premiums are notified by the Central Government in consultation with IRDAI. Revisions have been proposed since; check the current notification.
Finobazaar read published copies of these rules on 19 October 2026. Rules change: check the current text on irdai.gov.in or with your insurer.
Calculators
Guides and checklists
- How to make a motor insurance claimOwn-damage, theft and third-party claims: reporting, survey and settlement.
- Renewing an insurance policyGrace periods, keeping your benefits and what to check before you renew.
- Claim rejected? Complaints and the Insurance OmbudsmanHow to challenge a rejection or short payment: insurer, IRDAI's Bima Bharosa and the Ombudsman.
- Motor insurance claim: document checklistDocuments commonly asked for in own-damage, theft and third-party motor claims.
- Policy renewal checklistWhat to have ready and to check before you renew a policy.
Official resources
- IRDAI – Insurance Regulatory and Development Authority of India (opens in a new tab)The insurance regulator: regulations, circulars and the lists of registered insurers and intermediaries.
- IRDAI policyholder website (opens in a new tab)IRDAI's site for policyholders: consumer education and how to complain.
- Bima Bharosa – IRDAI grievance portal (opens in a new tab)Register and track a complaint against an insurer after you have complained to the insurer.Toll-free 155255 or 1800 4254 732; email complaints@irdai.gov.in. IRDAI accepts complaints from the policyholder or claimant, not from agents or other people writing for them.
Addresses checked on 19 October 2026.