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What Is Motor Insurance?
Top Benefits
Legal mandate
Third-party insurance coverage is mandatory per the Motor Vehicles Act of 1988. If you have a vehicle, you need to get it insured.
Different plans
Choose from different types of Motor Insurance plans and get customised coverage for your vehicle.
Third-party coverage
Protect your finances against third-party liabilities if your vehicle causes injury, death, or third-party property damage.
Coverage against loss or theft of own vehicle
Get covered for the financial loss if natural or man-made calamities damage your vehicle or if it is stolen.
Why Motor Insurance is Critical in India
5.8 Lakh
Motor vehicle accidents in India annually Every 2 minutes, someone gets into a motor accident
₹2.5 Lakh
Average motor accident claim amount Without insurance, you pay this from your pocket
72%
Vehicles in India are under-insured Most people have only basic third-party cover
₹2,500
Fine for driving without insurance Plus your license can be suspended
Legal Requirements Changed in 2026
New motor vehicle regulations make comprehensive coverage more important than ever
Don't Be Part of These Statistics
Get comprehensive motor insurance today and drive with complete peace of mind
Types of Motor Insurance
Private Car Insurance
Private car insurance is meant for personal-use four-wheelers. It covers losses due to accidents, fire, theft, natural calamities like floods or earthquakes, and third-party liabilities. It also includes personal accident cover for the owner-driver. You can enhance coverage by opting for add-ons like Zero Depreciation and Roadside Assistance. Premiums are calculated based on factors like the car’s make, model, registration city, age, and declared value.
Two-Wheeler Insurance
Two-wheeler insurance protects bikes and scooters from damage due to accidents, fire, theft, or natural disasters. It also includes third-party coverage. Riders can opt for various add-ons and benefits, including NCB protection and engine cover. Premiums depend on the two-wheeler’s age, specifications, and location.
Commercial Vehicle Insurance
Commercial vehicle insurance is for vehicles used for transporting goods or passengers, like trucks, taxis, or delivery vans. It covers damage from accidents, theft, fire, and third-party claims. This type of policy is crucial for safeguarding business operations and reducing financial risk.
Coverage Under Motor/Vehicle Insurance
When you purchase a motor insurance policy, it’s crucial to know what’s included and excluded to avoid surprises during claims. A standard vehicle insurance plan - especially a comprehensive one—covers various risks that could impact your finances or damage your vehicle.
Compare Our Motor Insurance Products
| All Motor Insurance plans | Own damage Motor Insurance | Third-party Motor Insurance | Comprehensive Motor Insurance |
|---|---|---|---|
| COVERAGE
|
Damage to the vehicle or theft | Third-party liabilities | Own damage + third-party liabilities |
| TENURE
|
1 year | 1 year, 3 years or 5 years | 1 year |
| ADD-ONS
|
Available | Limited add-ons are available | Available |
| PREMIUM
|
Depends on IDV | Set by IRDAI | Depends on IDV + Third-party premium set by IRDAI |
What’s Covered in Motor Insurance?
Accidents
Covers repairs or replacement if your vehicle is damaged due to a collision with another vehicle or object.
Theft
You’re compensated if your vehicle is stolen and not recovered, based on its Insured Declared Value (IDV).
Natural Calamities
Damage caused by floods, earthquakes, cyclones, or storms is covered under own-damage protection.
Fire and Man-Made Disasters
Protects against damage from fire, riots, vandalism, and other civil disturbances.
Third-Party Liability
Covers legal and financial liabilities if your vehicle causes injury, death, or property damage to a third party.
Personal Accident Cover
Offers financial compensation for the owner-driver in case of permanent disability or death.
Choose add-ons for extra protection
Zero Depreciation Cover
Get 100% claim amount without depreciation deduction for parts and accessories
• No depreciation on claims• Higher claim settlement
• Ideal for new vehicles
• Available for all vehicle types
Roadside Assistance
24/7 emergency support including towing, battery jumpstart, and minor repairs
• 24/7 availability• Free towing (up to 50km for cars, 25km for bikes)
• Emergency fuel delivery
• Flat tyre assistance
• Minor repair services
Engine Protection
Covers engine damage due to water ingress during floods or waterlogging
• Monsoon protection• Engine repair costs
• Hydrostatic lock coverage
• Essential for all vehicles
NCB Protection
Maintain your No Claim Bonus discount even after making a claim
• Preserve NCB discount• One claim per year
• Long-term savings
• Transferable between vehicles
Return to Invoice
Get the original invoice value if your vehicle is stolen or completely damaged
• Full invoice value• No depreciation loss
• Total loss coverage
• Market value protection
Consumables Cover
Coverage for consumable items like engine oil, nuts, bolts used in repairs
• Engine oil coverage• Nuts & bolts included
• Brake fluid and lubricants
• Coolant and other fluids
Key & Lock Replacement
Coverage for key and lock replacement in case of theft or damage
• Key replacement cost• Lock change coverage
• Emergency locksmith
• Immobiliser replacement
Personal Accident Cover
Enhanced coverage for driver and passengers.
• Up to ₹15 lakh coverage• Permanent disability cover
• Temporary disability benefits
• Death benefit for family
How to Buy Vehicle Insurance Online?
Buying a motor insurance policy through Aditya Birla Capital is simple, secure, and completely digital. Here is a step-by-step guide to help you buy your vehicle insurance online with ease:
Log in to the ABCD App or Website
Sign in with your existing credentials or register quickly as a new user to get started.
Enter Vehicle Details
Fill in important details like your vehicle's model, registration number, fuel type, and manufacturing year.
Compare Plans and Customise Add-Ons
Browse through available motor vehicle insurance plans, compare features and premiums, and select relevant add-ons. Don’t forget to adjust the IDV (Insured Declared Value) to suit your coverage needs.
Make Secure Online Payment
Use your preferred payment mode—debit/credit card, UPI, or net banking—for a fast and safe vehicle insurance online payment.
Get Instant Policy Issuance
Once the payment is completed, your vehicle insurance policy is instantly generated and sent to your registered email and app inbox. You're now insured and ready to drive with confidence.
What’s Not Covered in Motor Insurance?
Driving Under Influence
Claims are not honoured if you’re found driving under the influence of alcohol or drugs.
Invalid Licence or Policy
Driving with an expired licence or insurance voids coverage.
Mechanical Wear and Tear
Routine wear, mechanical or electrical breakdowns are excluded.
Geographical Limits
Damages outside India or during illegal usage are not covered.
How to Renew Vehicle Insurance Online?
Renewing your motor insurance policy with Aditya Birla Capital is a smooth, paperless process. Follow these steps to complete your vehicle insurance renewal online quickly:
Log In
Access your account on the ABCD app or website using your login credentials. New users can register in minutes.
Navigate to Motor Insurance Section
Go to the Motor Insurance tab under the Insurance category and choose your existing policy or browse new options.
Enter Previous Policy Details
Provide your old vehicle insurance policy number and vehicle details to fetch and compare the best renewal options available.
Compare & Customise Your Plan
Modify your IDV, select suitable add-ons like NCB Protection, and finalise your preferred motor vehicle insurance coverage.
Make Secure Payment
Proceed with your vehicle insurance online payment using UPI, debit/credit card, or net banking. Once done, your renewed policy will be instantly shared with your email and app. Tip: Renew before expiry to retain your No Claim Bonus (NCB) and avoid vehicle inspection delays.
How to Claim a Vehicle Insurance?
Filing a motor insurance claim with Aditya Birla Capital is a completely digital and stress-free experience. Follow these five clear steps to raise your motor insurance online claim smoothly:
Notify the Insurer
Log in to the ABCD app or website, or call the helpline to inform us about the incident. Early notification ensures quicker processing.
Submit the Claim Form & Documents
Upload the filled claim form along with required documents — your RC (Registration Certificate), driving licence, copy of your motor insurance policy, and photos of the damage.
Survey & Estimate
A surveyor appointed by the insurer will inspect your vehicle and generate a repair estimate based on the extent of damage.
Vehicle Repair & Final Submission
Get your vehicle repaired at a network garage for cashless service, or use a garage of your choice and submit the final bill for reimbursement.
Claim Settlement
● Cashless: The insurer pays the garage directly.
● Reimbursement: You pay first and are reimbursed after document verification.
Ensure timely and complete submission for hassle-free claim settlement.
Get started with Motor Insurance
How to buy?
- Login in to the ABCD App
- Go to the Motor Insurance homepage under the Insurance domain.
- Enter your vehicle number & other relevant vehicle details.
- Compare various car or bike insurance plans from leading insurers.
- Select any suitable add-ons or update your Insured Declared Value as per the requirement.
- Choose the plan that fits your pocket & fulfils your needs.
- Get assistance from our call centre (if required)
- Choose any mode of online payment to pay the premium amount.
- Once the premium is paid, the policy will be instantly issued on the basis of successful KYC.
How to renew?
- Login in to the ABCD App
- Go to the Motor Insurance homepage under the Insurance domain.
- Enter your vehicle number & other relevant vehicle details.
- Compare various car or bike insurance plans from leading insurers.
- Select any suitable add-ons or update your desired Insured Declared Value. Pro tip: Your IDV should be less than 10% less than Previous year policy.
- Choose the plan that fits your pocket & fulfils your needs.
- Get assistance from our call centre (if required)
- Choose any mode of online payment to pay the premium amount.
- Once Payment, your vehicle policy will be instantly renewed.
How to claim?
- Inform about the damage to the Insurance company on their toll-free number or email.
- Fill & submit the claim form along with the required documents
- Take an estimate of the repair of the damaged vehicle.
- The insurance company will send a surveyor to prepare a report of the damaged vehicle.
- Based on the surveyor’s report, your vehicle will be sent to the network garage for repairs.
- Submit the repair invoice, payment receipt & other requested documents
- If all the documents are in place, your vehicle will get repaired in the insurer’s network garage and you get a cashless claim.
- In case of reimbursement, pay the garage for the repairs & the amount will be reimbursed
Customer Satisfaction Stories
Aditya Birla Sun Life Insurance Customer
Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.
Aditya Birla Sun Life Insurance Customer
Haryana, India
Aditya Birla Sun Life Insurance Customer
Entire surrender process was quite smooth with timely documentation and payout. Great experience!
Aditya Birla Sun Life Insurance Customer
Gujarat, India
ABCD - One app for
Secure your vehicle against loss, damages and third-party liabilities. Buy motor insurance plans in a few steps with the ABCD app.
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Choice of plans for both bikes and cars -
Simple online process to buy and renew motor insurance
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One-click premium payments and instant policy issuance
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Understanding Motor Insurance
What is Motor Insurance?
-
Motor Insurance is an insurance policy for vehicles. It covers the damages that the vehicle might suffer and compensates for the financial loss.
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Motor Insurance also covers damages caused by the vehicle to third parties and pays the underlying financial liability on your behalf.
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Every vehicle is mandated to have a Motor Insurance policy to run on Indian roads legally.
What are the features of Motor Insurance?
- Comes in different variants such a third-party insurance, comprehensive insurance, standalone OD insurance, with a variety of add-on covers as well.
- Different plans for cars and bikes, coverage depends upon the age, make, condition, etc. of the vehicle.
- Coverage tenure is usually one year, but can also be purchased for a longer term.
- Covers unlimited liability for third party deaths.
- Offers cashless and reimbursement claims for hospitals in case of accidents and injuries involving any covered party.
Why is Vehicle Insurance Mandatory in India?
- In India, having a valid motor vehicle insurance policy is not just a safety measure—it is a legal requirement under the Motor Vehicles Act, 1988. Every vehicle operating on public roads must be covered by at least a Third-Party Liability insurance policy, which ensures that if your vehicle causes injury, death, or property damage to another person, the financial responsibility is covered by your motor insurance provider
- This law protects not only the victim of the accident but also the vehicle owner by absorbing hefty legal or compensation costs. Without valid vehicle insurance, any accident can lead to substantial out-of-pocket expenses and even legal trouble.
- Failure to carry a valid vehicle insurance policy can result in penalties, suspension of your driving licence, or even imprisonment. Whether you're buying a new vehicle or continuing with your current one, timely vehicle insurance renewal is a must.
- In short, motor insurance isn’t just about protection—it’s a legal necessity designed to keep all road users financially and legally secure.
How to Reduce Vehicle Insurance Premium?
Looking to lower your motor insurance premium without compromising coverage? These practical steps can help you save smartly while maintaining robust protection:
Choose only essential add-ons
-
Select only those add-ons that are relevant to your usage. Avoid extras that increase costs but add little value to your motor insurance policy.
Install anti-theft devices
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Vehicles fitted with certified anti-theft devices are considered low-risk, which can help reduce your premium. It’s a simple upgrade with long-term savings.
Avoid small claims
-
For minor repairs, consider paying out of pocket. Preserving your No Claim Bonus (NCB) results in significant discounts during vehicle insurance renewal.
Opt for a higher voluntary deductible
-
Agreeing to pay a higher voluntary deductible during claims lowers your premium amount while still retaining overall protection.
Renew on time
-
Timely renewal of your vehicle insurance policy helps avoid penalties, inspection requirements, and loss of NCB benefits.
Compare policies before buying
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Use the ABCD App to compare features, premiums, and add-ons before selecting the best vehicle insurance online plan for your needs
-
These simple strategies help you optimise coverage while staying cost-effective.
Things to Consider While Buying Vehicle Insurance
Choosing the right motor insurance policy is crucial for long-term peace of mind. Use this checklist to make a smart, informed decision before you buy:
Coverage Type
-
While third-party insurance is legally required, opting for a comprehensive vehicle insurance policy ensures better protection for both your vehicle and third-party liabilities.
Add-Ons
-
Consider useful add-ons such as Zero Depreciation, Engine Protection, and Roadside Assistance to expand your base coverage and reduce out-of-pocket expenses.
Network Garages
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Ensure your insurer has a wide network of cashless garages nearby. It simplifies claim servicing and saves time during emergencies.
Claim Process
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Pick a provider that offers a digital-first process for faster and smoother vehicle insurance online claim submission and approval.
IDV Selection
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Choose an appropriate Insured Declared Value (IDV) to balance premium affordability and claim payout accuracy
Customer Support
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Good customer service is essential. Ensure support is available via call, app, or WhatsApp during critical claim moments.
Exclusions
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Always check the exclusions to know what your motor insurance does not cover, so there are no surprises later.
What is covered and what is excluded in Motor Insurance?
Coverage
-
Third party bodily injury or death
-
Third party property damage
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Damage to the vehicle due to man-made causes
-
Damage to the vehicle due to natural disasters
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Accidental death or disability suffered by the owner/driver
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Theft of the vehicle
Exclusion
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Deliberate accidents
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Driving under the influence of alcohol or drugs
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Driving without a valid licence
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Driving outside India’s borders
-
Criminal acts
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Consequential loss
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Depreciation and normal wear and tear
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Mechanical and electrical breakdown
Common Motor Insurance terminologies
IDV (Insured Declared Value)
The current market value of your vehicle. This is the maximum amount you can claim if your vehicle is totally lost or stolen. Choosing the right IDV directly impacts your premium and payout.
Third-Party Liability
A mandatory component of every motor insurance policy, it covers legal and financial liabilities if your vehicle causes injury, death, or property damage to others.
Comprehensive Policy
A policy that provides dual protection—own damage cover and third-party liability, making it the most inclusive form of vehicle insurance.
Deductibles
The portion of the claim amount you agree to pay from your pocket. There are two types:
• Compulsory Deductible – A fixed amount set by IRDAI.
• Voluntary Deductible – Chosen by you to lower your vehicle insurance premium.
No Claim Bonus (NCB)
A discount of up to 50% on the renewal premium for every claim-free year. Helps reduce your cost over time.
Add-ons
Optional features like Zero Depreciation, Engine Protection, and Roadside Assistance can add to enhance your motor insurance policy.
What factors affect the Motor Insurance premium?
The cost of your motor insurance policy is not a flat rate—it is influenced by several important factors. Understanding these elements can help you manage your vehicle insurance premium smartly and ensure you get the best value for your money.
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Type of policy
The kind of coverage you select has a major impact. A comprehensive policy costs more than a third-party policy because it includes both own damage and third-party liabilities..
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IDV (Insured Declared Value)
A higher IDV means a higher premium. However, undervaluing your vehicle might reduce your premium but can lead to lower claim settlements during a total loss.
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Vehicle Age & Type
Brand new, luxury, or high-capacity vehicles attract higher premiums due to increased replacement or repair costs, compared to older or budget vehicles.
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Location of Registration
Your premium also varies by region. Vehicles registered in metro cities usually have higher premiums because of greater traffic congestion and risk.
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Add-Ons
Every additional cover—like Zero Depreciation or Engine Protection—adds to your overall vehicle insurance online premium.
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Previous Claims History
A clean record earns you a No Claim Bonus (NCB), which can significantly lower your vehicle insurance renewal cost over time.
How is the IDV calculated under Motor Insurance plans?
The Insured Declared Value (IDV) is the estimated current market value of your vehicle and represents the maximum compensation you can receive under your motor insurance policy in case of a total loss or theft.
IDV is calculated by the following formula
IDV =Ex-showroom price + Depreciation + Cost of accessories (if any)
Here’s how depreciation is applied based on your vehicle’s age:
|
Vehicle Age |
Depreciation Applied |
|
Less than 6 months |
5% |
|
6 months – 1 year |
15% |
|
1–2 years |
20% |
|
2–3 years |
30% |
|
3–4 years |
40% |
|
4–5 years |
50% |
|
Over 5 years |
Mutually decided |
Choosing the correct IDV ensures you don’t overpay for insurance or end up underinsured. A realistic IDV strikes the right balance between premium cost and claim value, helping you stay protected with a fair settlement in case of major damage or loss.
How much No Claim Bonus is available under Motor Insurance plans?
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The No Claim Bonus (NCB) is a reward offered to policyholders who do not raise any claims during their motor insurance policy term. It acts as a discount on your vehicle insurance renewal premium and encourages responsible driving.
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NCB is applicable only under comprehensive motor insurance policies, and the discount increases with every consecutive claim-free year, up to a maximum of 50%.
|
Claim-Free Years |
NCB Discount |
|
1 year |
20% |
|
2 consecutive |
25% |
|
3 consecutive |
35% |
|
4 consecutive |
45% |
|
5 consecutive |
50% |
This bonus can significantly reduce your motor vehicle insurance cost over time. However, filing even a single claim resets your NCB to zero in the following policy cycle.
To safeguard your accumulated discount, you can opt for an NCB Protection add-on, which allows you to retain your NCB even after a limited number of claims. This ensures you enjoy the benefits of reduced premiums year after year without worrying about losing the bonus after a minor incident.
What is a Vehicle Insurance Calculator?
- A Vehicle Insurance Calculator helps estimate the premium you’ll need to pay based on your specific vehicle details. It’s a useful tool for planning your insurance budget and helps ensure you get the best value out of your motor insurance policy. Whether you're buying new vehicle insurance or looking at vehicle insurance renewal, this tool offers clarity before commitment.
How does the calculator work?
- The calculator uses inputs like your vehicle’s registration number, make and model, year of manufacture, fuel type, and registration location to compute your IDV (Insured Declared Value). It then calculates the premium, taking into account any chosen add-ons. This allows you to compare quotes and select a vehicle insurance policy that offers the best protection at the right price.
- ABCD’s Vehicle Track feature helps you monitor all key vehicle-related details in one place. From insurance and PUC expiry to pending challans, real-time fuel prices, and your car’s market valuation, this tool keeps you updated and legally compliant.
- Simple Steps to Get Started: Access Vehicle Track via the ABCD App or website, enter your registration number, verify your policy status, and renew it instantly if needed. You can also store documents securely and locate nearby PUC centres—all with a few clicks.
Stay Informed with ABCD’s Vehicle Track Tool
ABC Of Motor Insurance