Car Insurance

01Third-Party Car Insurance

Also called legal liability insurance, this is the minimum cover required by law. It does not pay for damage to the customer’s own car — it pays for what the customer’s car does to someone else.

• Damage caused to another person’s vehicle or property is paid by the insurance company.
• In case of injury or death of a third party, compensation is settled by the insurer.
• Legal costs and court expenses arising out of the accident are borne by the insurance company.

The third-party premium is fixed every year by IRDAI on the basis of engine capacity, so it is the same across every insurer. Only the own-damage part of the premium is where comparison actually saves money.

02Comprehensive Car Insurance

Comprehensive cover includes the third-party liability plus own-damage cover for the customer’s own car. This is what most car owners in India choose.

• Accident damage to the insured car, however the accident happened.
• Theft of the vehicle — the full Insured Declared Value (IDV) is paid.
• Fire, explosion, riot, strike and malicious damage.
• Natural calamities — flood, cyclone, earthquake, landslide, storm.
• Personal accident cover for the owner-driver.

03Add-On Covers Available Through Paydeer

• Zero Depreciation (Bumper-to-Bumper): the insurer pays the full cost of replaced parts without deducting depreciation. Highly recommended for cars up to 5 years old.
• Engine & Gearbox Protection: covers engine damage from water ingression or oil leakage — not covered in a standard policy.
• Invoice Protection (Return To Invoice): on total loss or theft, the customer gets the full invoice value instead of the depreciated IDV.
• Road-Side Assistance: towing, flat-tyre help, jump start and fuel delivery, anywhere, any time.
• Consumables Cover: pays for engine oil, coolant, nut-bolts and other consumables used during repair.
• No Claim Bonus Protection: the customer keeps the accumulated NCB discount even after making one claim.
• Key Replacement & Tyre Cover: small add-ons that pay for a lost smart key or a damaged tyre, both expensive to replace on newer cars.

04Understanding IDV And No Claim Bonus

IDV (Insured Declared Value) is the current market value of the car and it is the maximum the insurer will pay if the car is stolen or damaged beyond repair. A very low IDV brings the premium down but leaves the customer short at claim time — the retailer should always explain this trade-off.

No Claim Bonus is a discount on the own-damage premium for every claim-free year, starting at 20% and going up to 50% after five clean years. It belongs to the customer, not to the car, so it can be carried over even when the car is changed.

The NCB survives a change of insurer, but not a break in cover of more than 90 days. For a small dent, it is usually cheaper to pay from the pocket than to lose a 45% discount for the next year.

05What To Do Right After An Accident

1. Inform the insurer or the Paydeer retailer the same day. Most policies require intimation within 24 to 48 hours.
2. Take photographs of the damage, the number plate and the spot before the car is moved.
3. File an FIR for theft, third-party injury or any major damage. For theft, the claim needs the non-traceable report from the police.
4. Move the car to a network garage for a cashless repair, or to any garage if the customer prefers reimbursement.
5. Do not start repairs before the surveyor has inspected the vehicle — that alone causes a large share of rejected motor claims.