IDV means Insured's Declared Value. It is the value of the vehicle, which is arrived at by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage as prescribed in the Tariff.

For the vehicles that are obsolete and aged over 5 years, the IDV will be the value agreed between the Insurer and the Insured.

Those items that are not supplied by the vehicle manufacturer along with the vehicle are called Electrical/Electronic accessories e.g. music system that does not come along with the vehicle.

Motor Insurance Policies are issued for a period of 12 months and terminate at midnight on the date of expiry.

Policies for a shorter period called Short Period Policies are also available at the option of insurers for which higher premium is charged.

A cover note is a temporary certificate of insurance issued by the Insurer before the issuance of a policy, after the Insured has given a duly filled in proposal form and has paid the premium in full.

A cover note is valid for a period of 60 days from the date of issue of the cover note and the Insurer shall issue the Certificate of Insurance before the cover note expires.

The premium has to be paid before the policy starts. Motor Insurance Policies start at midnight on the start date. Therefore it is advisable to pay the premium on or before the expiry date to avoid a break in the cover.

A No Claim Bonus (NCB) is given as an incentive to reward safe driving. This is given at the time of renewal by way of discount in renewal premium. The percentage of bonus increases with every claim-free year and is withdrawn if there is a claim.

It is the loading on the premium imposed by the insurers in case they perceive a higher risk in insuring a vehicle. The higher risk could be due to the age of the driver or due to the past driving record / safety record of the driver.

In addition to the cover available under Policy A the reimbursement of expenses are limited to the actual amount spent on the repairs of the vehicle, to get the vehicle repaired [Accidented Portion] (including cost of replacements if any) subject to 50% depreciation on the cost of Tyre and Tubes.

The insurer shall also reimburse Towing charges and spot repairs (actual) upto Rs. 1500/-subject to submission of documentary evidence.

In the event of Theft or Burglary of the Vehicle the liability of the insurer is restricted to the Sum Insured (IDV).
This provision is also applicable to the vehicles damaged in the accident to the extent beyond repair or beyond ecomonic repairs. As a matter of practise, Insurers decide/ consider total loss on economic grounds when accidental repair cost exceeds 75% of Insured's Declared Value (IDV) or Sum Insured of subject vehicle.

If a Third Party (A person other than Insured and the Insurer) who is injured /dies due to an accident with the Insured Vehicle, the amount of compensation adjudged by the Motor Accident Claims Tribunal is made good by the insurers and is payable to the Legal Heir of the Deceased or the Injured. The amount of compensation is unlimited/ has no preset limit.

The compensation payable to Third Party for damage to its property (moveable or fixed) is restricted to Rs. 6000/- {Rupees Six Thousand Only}, irrespective of the amount adjudged by the Motor Accident Claims Tribunal/Court. This compensation limit can be increased to Unlimited by paying of an additional Premium at the time of taking insurance.

Claims arising out of and in the course of employment of a person in the employment of the Insured are compensated to the extent of Rs.20, 000/- when an Employee (Other than paid driver) is in the driving seat.

The risk can be deleted from the Comprehensive Cover and the following discounts; can be availed (although deletions are not advisable as they defeat the very purpose of comprehensive cover):

The exclusion of this risk to save the premium shall not be treated as Comprehensive Insurance in its true sense. The  expenses due to loss / Accident attributed to Riot and Strike, Malicious Damage and Terrorist Activities shall not be payable. To illustrate the effect of deletion:

The damage to vehicle directly attributed to Earthquake, for example had the car been damaged as a result of Earthquake viz LATUR, UTTARKASHI, EARTHQUAKES, The claim in respect of those damages (Total or Partial) were not payable.

Flood means the natural calamities and includes, Storm, Tempest, Hurricane, Tornado, Landslide etc., if this cover is deleted from the policy the loss directly attributable to these risks is not payable.