Written by Harwansh Tiwari — Bengaluru-based personal finance builder and founder of NiyamFin. Educational only; not financial advice.
Published · Last reviewed: · Data checked: · Reviewed yearly or after major regulatory changes
Sources: Income Tax Department, RBI, SEBI, PFRDA, IRDAI, AMFI · See methodology
Motor Insurance in India: Third-Party, Own Damage and IDV
Understand mandatory third-party cover, own-damage structures, IDV and claims through current policy wording.
Quick answer
EstimateThird-party cover addresses statutory liability to others; own-damage cover addresses insured vehicle risks under the policy wording.
IRDAI states that third-party liability insurance is mandatory for vehicles plying on public roads in India. Own-damage protection is a separate cover that may be packaged, bundled or purchased under an applicable standalone structure.
IDV and premium
Insured Declared Value is used for the insured vehicle under the policy terms. It should be checked against the proposal and policy wording. Age, vehicle details, claims history, deductibles, coverage, IDV and insurer-filed own-damage rates can affect premium. Do not assume one fixed depreciation table or IDV percentage applies to every quote or renewal.
Third-party premium treatment and own-damage pricing are not the same. Compare coverage, exclusions, deductibles, add-ons, IDV, service and total premium rather than choosing solely by price.
Claims
Notify the insurer and follow the time, documentation, survey, repair and settlement requirements in the applicable policy and current process. Whether to make a small own-damage claim can depend on repair cost, deductible, claim history and future premium effects; there is no universal threshold.
Check the policy wording and current insurer/IRDAI process applicable to the claim.
Source
Use the calculator
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Data sources checked
Source-dependentData last checked: 2026-10-08
Rules, rates, and regulatory details can change. Use the source links below to verify current facts before acting.
Disclaimer
This article is for general education only. It does not provide financial, investment, tax, insurance, lending, or legal advice and should not be used as the basis for financial decisions.