Fundamentals
Four ideas to hold onto.
What is insurance
You pay a premium so the insurer takes on a defined financial risk on your behalf. If the covered event happens, they pay for the loss up to policy limits.
Types of policies
Motor, health, home, travel, and life. Each covers a different kind of risk. Motor insurance is mandatory for every vehicle on Indian roads.
How premiums work
Your premium depends on the risk you carry: vehicle age, insured value, location, claim history, and the cover you choose.
Why claims fail
Undisclosed information, expired PUC, driving without a valid licence, or intoxication at the time of an accident are common reasons.
Insurance terms
Words worth knowing before you sign.
the amount you pay for cover
the maximum a motor policy will pay for a total loss
the maximum payout for a health or property policy
the portion of a claim you pay yourself
a renewal discount for claim-free years
the insurer settles directly with the garage or hospital
Official Valuation Scale
Statutory Motor IDV Depreciation Schedule
Under the Indian Motor Tariff, Insured Declared Value (IDV) is calculated based on vehicle age using this standard depreciation schedule.
| Vehicle Age | Depreciation Rate | Insured Declared Value (IDV) |
|---|---|---|
| Up to 6 months | 5% | 95% of showroom price |
| 6 months to 1 year | 15% | 85% of showroom price |
| 1 year to 2 years | 20% | 80% of showroom price |
| 2 years to 3 years | 30% | 70% of showroom price |
| 3 years to 4 years | 40% | 60% of showroom price |
| 4 years to 5 years | 50% | 50% of showroom price |
| Exceeding 5 years | Mutually agreed | Negotiated based on vehicle condition |
Calculate the exact valuation for your make and model on the official GI Council portal.
Launch Official GI Council IDV CalculatorGeneral Insurance Council (GI Council): Motor Insurance
Read official Indian motor vehicle classifications and statutory insurance guidelines.