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Motor Insurance: IRDAI Guidelines and Coverage

Complete guide to motor insurance in India. IRDAI guidelines, motor vehicle insurance, comprehensive and third-party coverage.

GetYourCA Team
8 April 2026·Updated 8 April 20261 min read12.5K views

Motor Insurance in India#

Types of Motor Insurance#

1. Third-Party Insurance (Mandatory)

  • Covers liability for third-party death/injury
  • Property damage up to ₹7.5 lakh
  • Is mandatory as per Motor Vehicles Act

2. Comprehensive Insurance

  • Own damage cover
  • Third-party cover
  • Additional add-ons

Coverage Details#

CoverageDescription
Own DamageDamage to own vehicle
Third-Party LiabilityInjury/death to third party
Fire DamageFire incidents
TheftVehicle theft
Natural CalamitiesFlood, earthquake damage

Add-on Covers#

  • Zero depreciation
  • Engine protector
  • NCB protection
  • Roadside assistance
  • Personal accident cover
  • Return to invoice

IRDAI Guidelines#

  • Mandatory third-party cover
  • Real-time pricing
  • Online policy purchase
  • Surveyor appointment norms
  • Claim settlement timelines

Premium Calculation#

  • Vehicle type and age
  • IDV (Insured Declared Value)
  • Zone classification
  • No Claim Bonus (NCB)
  • Add-on covers

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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