Third Party Liability Insurance : As per Motor vehicle act 1988, it is mandatory for automobile owner to take third liability insurance from registered insurers from IRDAI against financial/legal liability that may arise from a third party property/life injury/damage/death due to an accident while using automobile.

Own Damage Vehicle : This ensures financial compensation to automobile owner against physical damages to vehicle due to an accident. However, it covers everything except deductible under policy, file charges and consumable items.

Other Add-on Covers:- Now a days, variety of add on covers provided by insurance companies under automobile insurance such as below

1. Zero depreciation : Full value of all parts replaced during partial damage to vehicle
2. Engine & gear box Protection
3. Personal Accident cover for passengers
4. Daily Allowance : Cost of alternative vehicle during insured vehicle is under repair
5. Key replacement cover : Pays against replacement or repair of key at event of theft or misplacement of key.
6. Consumable cover : Covers against expenses of consumables such as nuts, bolts, gases, greases etc
7. NCB protection : NCB remains same even after claims is made.
8. Return to invoice : Pays invoice in case of total damage or theft of vehicle
9. Road side assistance(RSA) : RSA services at event of breakdown or accident.
10. Personal Belongings Cover : Damage to personal belongings during an accident.
11. Tyre cover

Legal Liability towards driver/passengers.

Claim under motor insurance triggers when either of below event occurs and results into physical damage to vehicle and/or to third partly bodily injury/death or property damage.

1. Fire explosion due to self ignition or lightning
2. Burglary, housebreaking, theft
3. Riot, strike
4. Earthquake(Fire & shock damage)
5. Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hail storm,
6. Accidental damage by external means
7. Malicious act
8. Terrorism
9. Whilst in transit on by rail road, in land water way, lift, elevator, or air
10. Landslide, rockslide

Claims are not payable under below circumstances:-

1. Consequential loss, wear & tear, mechanical or electrical breakdown, failures or breakages
2. Accident occurring outside Indian geographical area
3. If vehicle is used for purpose other than what is specified in policy.
4. Arising nuclear weapon material
5. War, invasion related circumstances
6. If driver of insured vehicle is found to be under influence of alcohol or drug at event of accident.