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 old vehicles that you get serviced by nearest vendors and not claim insurance, for old two wheelers. Typically in vehicles you feel you'll not claim insurance in even if damage occurs.

 
2. Comprehensive/Package (covers TP + Own Damage) - Suitable for all vehicles mostly for vehicles of or above 2-3 lakhs value of being insured pales in comparison to the cover it provides against the eventuality of accident/ damage. 

3. Stand-Alone Own Damage. Only suitable for up-to 3 years of new vehicle as the initial policy has mandatory TP cover of 3 years. Since 2018, new cars must have a 3-year mandatory TP 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 only 2 zero dep / nil dep claim per policy year

Engine protect is most suitable for New cars (up to 3 years), and for vehicles in flood prone areas. Note: standard Engine protect does not cover damage caused by putting wrong fuel as it comes under negligence or consequential damage. it only covers engine damage due to water ingression (hydrostatic Lock) or oil leakage.

Yes. NCB belongs to the policyholder, not the car / vehicle. So it can be transferred to a new car / vehicle you purchase, but the owner of the new and old car must be same. 

Usually, a short period (up to 30 days) after the policy expires, during which you can renew without losing benefits, though coverage may stop on expiry.  Policy on grace period of vehicle insurance might 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 50% discount on your premium).  Policy on renewal of vehicle insurance differ from company to company

If your policy lapses, your vehicle is no longer protected, and you are breaking the law. First and foremost you need to stop driving that vehicle legally, or a you could face penalty. 

• 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.