Car Insurance
Third-party or comprehensive — issued in minutes, at the lowest premium.
Under the Motor Vehicles Act 1988, no car can legally be driven on an Indian road without at least third-party insurance. Beyond the legal requirement, a good policy is what stands between the owner and the full cost of an accident, a theft or a flood.
Paydeer is connected with multiple motor insurance companies, so a retailer can pull quotes side by side, apply the customer’s No Claim Bonus, and issue the policy instantly — whether it is a new car, a renewal or a lapsed policy that needs to be restarted.
Third-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.
Comprehensive 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.
Add-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.
Understanding 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.
F.A.Q
Frequently Asked Questions
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Which car insurance is best — third party or comprehensive?
Third-party is the legal minimum and the cheapest, but it pays nothing for the customer’s own car. For any car that still holds value, comprehensive insurance is the better choice because it covers accident damage, theft, fire and natural calamity along with third-party liability.
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Will I get a claim if my car is stolen?
Yes, provided the policy is comprehensive. After the FIR and the non-traceable report from the police, the insurance company pays the Insured Declared Value of the car. A third-party-only policy does not cover theft.
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Can I renew a policy that has already expired?
Yes. A Paydeer retailer can renew a lapsed policy, but the insurer usually requires a fresh inspection of the vehicle and the No Claim Bonus is lost if the break is longer than 90 days. Renewing before expiry is always cheaper.
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Is insurance available for an old car?
Yes. Older cars can be insured, and repair costs for damaged parts can still be claimed. The IDV will be lower because of depreciation, and some insurers restrict certain add-ons beyond a particular vehicle age.
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How long does it take to issue a car policy at a Paydeer outlet?
For a normal renewal the policy is issued within a few minutes and the PDF reaches the customer immediately. Cases that need a vehicle inspection — typically a lapsed policy — are completed through a self-inspection on the Paydeer portal.
