MOTOR INSURANCE (Private Car) – Things you Should Know


vector image of car

A mechanically self-propelled vehicle; supposed to be ply on the public roads should have at least
‘ THIRD-PARTY ‘ Insurance as per the Motor Vehicles Act

Coverage under motor insurance:

OWN DAMAGE: (Comprehensive)

The company will indemnify the insured against loss or damage to the insured vehicle.

i. by Fire
ii. by Explosion
iii. by Self Ignition
iv. by Lightning
v. by Burglary, house-breaking or theft
vi. by Riot & Strike
vii. by Earthquake (incl. fire and shock damage)
viii. by Storm, Tempest, Flood, Inundation, Typhoon, Hurricane, Cyclone, Hailstorm & Frost
ix. by Accidental external means
x. by Malicious act
xi. by Terrorist activity
xii. whilst in transit by road, rail, inland waterway, lift, elevator, or air
xiii. by landslide including rockslide


1. Death or bodily injury to any person including occupants carried in the vehicle
(provided such occupants are not carried for hire or reward)
The company shall not be liable where such death or injury arises out of and in the
the course of the employment of such person by the insured.

2. Damage to property other than property belonging to the insured or held in trust or
in the custody or control of the insured.

Depreciation schedule:

1. For all rubber/nylon/plastic parts, tires & tubes, batteries, and airbags – 50%
2. For fiberglass components – 30%
3. For all parts made of glass – Nil
4. For all other parts – as per the schedule (age-wise of the vehicle)


i. Nil Depreciation (Bumper to Bumper)
ii. Roadside Assistance
iii. Consumables
iv. Engine Protection
v. NCB Protection
vi. Return to Invoice
vii. Loss of personal belongings
viii. Loss of keys
ix. Tyre Protection

No Claim Bonus:

No Claim Bonus (NCB) can be earned only in the Own Damage section of policies
covering all classes of vehicles; provided at the completion of 12 months claim-free period.


i. Any person including the Insured, provided that a person driving holds an effective driving license
at the time of the accident and is not disqualified from holding or obtaining such a license.

ii. If any person holding an effective Learner’s License may also drive the Insured vehicle provided
such person satisfies the requirements of Rule 3 of The Central Motor Vehicles Rules, 1989.


Company shall not be liable under the Motor Policy in respect of:
1. any accidental loss or damage and/or liability caused sustained or incurred outside the geographical area.
2. any claim arising out of any contractual liability
3. any accidental loss or damage to any property whatsoever or any loss or expense whatsoever resulting from or
arising therefrom or any consequential loss
4. any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionizing
radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel.
5. any accidental loss or damage or liability directly or indirectly caused by or contributed to by or arising from
nuclear weapons material.
6. any accidental loss damage and/or liability directly or indirectly or proximately or remotely occasioned by
contributed to by or traceable to or arising out of or in connection with war, invasion, the act of foreign enemies,
hostilities or warlike operations


The Company shall not be liable for each and every claim under Section – I (loss of or damage to the vehicle insured)
of the Policy in respect of the deductible stated in the schedule.

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Susheel Agarwal

Susheel is the CEO of Ethika Insurance Broking P Ltd. This company, which has a current value of 10 million dollars, was bootstrapped by him and two of his friends. He attributes his success to his ability to inspire others to seek happiness at work.