Yes. Under the Motor Vehicles Act, 1988, it is legally mandatory for every vehicle plying on Indian roads to have at least a Third-Party Liability insurance policy. Driving without valid insurance can lead to heavy fines, license suspension, or even imprisonment. 

1. Third-Party (TP) - Suitable for older vehicles or two-wheelers where you intend to use local mechanics and do not plan to claim insurance for minor damages. 

 
2. Comprehensive/Package (covers TP + Own Damage) - Suitable for all vehicles, especially those valued above ₹2-3 lakhs. The premium paid is minimal compared to the extensive financial protection it offers against accidents or severe damage.

3. Stand-Alone Own Damage - Suitable only for vehicles up to 3 years old, as new vehicles come with a mandatory 3-year Third-Party cover  With a Standalone OD policy, you can buy your "Own Damage" cover for just 1 year at a time and switch insurers easily if you find a better deal. You can attach popular add-ons like Zero Depreciation, Engine Protect, or Roadside Assistance to this policy, which you cannot do with a basic Third-Party policy. 

t covers only the legal liability for injury, death, or property damage caused by your vehicle to a third person or property. 

It covers both Third-Party Liability and Own Damage (OD) to your vehicle (due to accidents, fire, theft, or natural calamities). 

Third-Party: Covers only the damage, injury, or death caused by your vehicle to another person or their property. It does not cover damage to your own vehicle.

Comprehensive: Covers third-party liabilities plus damages to your own vehicle due to accidents, theft, fire, or natural calamities. It is highly recommended for better financial protection.

Yes, provided the person driving had a valid driving license and was driving with your permission. However, the claim will still be filed under your policy, and you will lose your No Claim Bonus (NCB). 

Insured Declared Value is the maximum amount the insurer will pay if your vehicle is a total loss (stolen or damaged beyond repair). It's essentially the current market value of your vehicle. 

An add-on that ensures the insurer pays the full cost of repairs without deducting depreciation on plastic, fiber, and metallic parts during a claim.  You get the full claim amount without deductions for depreciated parts (highly recommended for cars under 5 years old).   

Generally, most companies allow a maximum of two Zero Depreciation / Nil Depreciation claims per policy year. 

Engine Protect is most suitable for new cars (up to 3 years) and for vehicles in flood-prone areas. Note: A standard Engine Protect add-on does not cover damage caused by putting in the wrong fuel, as this is considered negligence or consequential damage. It only covers engine damage due to water ingression (hydrostatic lock) or oil leakage. 

Yes. The NCB belongs to the policyholder, not the vehicle. It can be transferred to a new vehicle you purchase, provided the registered owner of both the old and new vehicles is exactly the same. 

There is usually a short grace period (up to 30 days) after the policy expires during which you can renew without losing your NCB benefits, although insurance coverage ceases during this uninsured period. The specific grace period rules differ from company to company. 

The grace period is a short duration, usually up to 30 days, provided by the insurance company after your motor insurance policy has officially expired. It is intended to give the policyholder a brief window to renew their policy without losing certain benefits. 

If you renew within the 30-day window, you typically retain your entire NCB percentage (which can be up to a 50% discount on your premium). Policies regarding vehicle insurance renewal differ from company to company. 

If your policy lapses, your vehicle is no longer protected, and driving it is illegal. You must stop driving the vehicle immediately to avoid facing severe legal penalties.

• Inspection: If you renew after expiry, the insurer will likely require a physical inspection of the vehicle.

• NCB Loss: If you don't renew within 90 days of the expiry date, you will lose your accumulated No Claim Bonus.