Private Car Package policy

This policy is taken only for a transport vehicle /car /omnibus whose unladen weight does not exceed 7,500 kgs and is used only for social, domestic and pleasure purpose and for insured's own business. The policy does not cover use for Hire or Reward, Organized racing, Speed testing and carriage of goods (other than samples) in connection with any trade or business or use for any purpose in connection with Motor Trade.

Scope of Cover

A Private Car Package policy covers losses and damages to the Insured vehicle as well as third-party Losses.

Own Damage Cover (OD)

Fire, Explosion, Lightning, Burglary and Theft, Riot and Strike, Typhoon, Hurricane, Storm, Tempest, Malicious act, Earthquake, Flood, Terrorist activity, Landslide/Rockslide. It also covers damages by accidental, external means while in transit by rail/road, inland water, lift or air

Electrical / Electronic Fittings which do not form part of the vehicle manufactured and imported have to be specifically covered separately by paying additional Premium of 4% on the value of such fittings.

Vehicles fitted with CNG/LPG Bi-fuel kits have to be separately declared and Premium is chargeable at 4% on the value of such kit. In case of Inbuilt CNG, 5% extra on OD Premium& Rs. 60/- Extra on TP Premium. Fiber Glass Fuel Tanks an additional Premium of Rs.50/- for OD cover.

Insurers allow Discount on Own damage Premium depending on their Incurred Claims ratio which vary from Insurer to Insurer and also type of vehicle.

Third Party losses

It covers the legal liability required by law (third Party Losses) i.e. Accidents resulting in injury and death of any third party & or property damage.

Personal Accident Cover to Owner cum Driver

This cover is to be taken mandatorily by all individual vehicle owners. It Provides PA Cover whilst driving the vehicle including mounting into/ dismounting from or traveling in the insured vehicle as a co–driver Coverage in case of Death & PTD : Rs 15,00,000 & in case of Loss of sight of 1 eye or 1 Limb- 50% total Sum assured I.e. Rs 750000.

With effect from 1st Jan 2019, the Insured will not have to purchase separate compulsory personal accident (CPA) cover for every new vehicle they purchase. He can buy one separate policy of Rs. 15 lakhs from any Insurer which will be valid for all vehicles owned by him.

Personal Accident cover can be given to passengers of the vehicle on a named or unnamed basis, the number of passengers being limited to the registered seating capacity of the car

Sum Insured or Insured Declared Value (IDV)

IDV is calculated as manufacturer's listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them,

The term ‘IDV’ refers to the maximum claim Insurer will pay if vehicle is damaged beyond repair or is stolen. For vehicles above five years of age, the Sum Insured or IDV is mutually agreed value.


Vehicle’s age, Make, model, IDV, location are the factors that determine Premium.

No Claim Bonus (NCB)

It is a kind of reward that the Insurers provide to their customers when they do not prefer any claim in a policy year. The insured person gets a discount on their Premium when they renew their insurance in the next policy year. If no claims are made in your first policy year 20% NCB Is allowed. Consequently, this can go up to 50% in sixth Year (Maximum).

Points to be noted

The NCB is a means to reward for being a good and responsible driver and car owner.

As long as you have been renewing your car policies before its expiry date, you can continue to benefit from a No Claim Bonus for your car insurance.

No Claim Bonus will save your annual car insurance Premium & is calculated on Own damage Section only provided there is no claim on expiring Policy.

Easily Transferable in situations where you’re either changing your Insurer or car, the process to transfer of your NCB is simple and hassle-free. .

If there is a claim on the expiring Policy, NCB is not allowed at the time of renewal Also If Policy is not renewed within 90 days from the date of expiry, NCB will be terminated and you will not get the benefit any more.

NCB can be utilized within 3 years (where the existing vehicle is sold and a new vehicle is purchased).

NCB recovery can be done in case of a name transfer on the RC of the vehicle.

Add on covers

They are optional covers for protection of your vehicle, they can be availed by paying a little extra over the base Premium.

Bumper to bumper or nil depreciation

Offers 100% coverage for all fibre, rubber and metal parts without deduction of any depreciation. Ideal for cars less than 5 years old and for partial losses. It nullifies the depreciation charged on car and its parts and gives the full value of repairs, costs and replacements in the event of a claim.

Return to Invoice

For damages beyond repair & in case of theft, it provides the benefit of getting back the complete amount of car's invoice value, including the cost of registering a new vehicle and its road tax.

Engine protect

This Provides cover to Engine and Gear Box if the damage is due to water ingression, damage to gear box, under carriage damage, damages due to lubricant leakage caused by external impact. It pays towards the cost of repair & replacement of all the components of engine and gear box including cost of Consumables i.e. lubricating oil, coolant, nuts and bolts during the repair and cost of Labour. It is ideal for People who own high-end cars for which the cost of damaged engine repairing would be very expensive& People who want to avoid all kinds of financial risks.

Consumables cover

Under this Add-on, the company will pay for the consumable items such as nut, bolt, screw, washers, grease, coolants, lubricants, engine & other oils, clips, ac gas, bearings, battery water, filters, sealants, gaskets, etc subject to condition that the claim is admitted under the Policy.

Key replacement cover

Under this Add-on, the Company will pay the insured for the cost incurred towards repairing/replacing the car keys and / or locks and/ or lockset, including locksmith charges, upon the occurrence of theft/burglary/ loss of or damage to the keys and / or lock and / or the lockset of the Insured’s vehicle, during the Policy Period. The total number of times the insured is allowed to claim in a particular year are two

Loss of Personal Belongings

Under this Add-on, the company will pay for the loss of personal belongings on account of damage to or theft from the insured vehicle.

Car Tyre Protect

Damage to tyres and tubes without the vehicle meeting with an accident are not covered under the regular Private car Package policy. This add on cover takes care of Damages arising out of accidental loss or damage to Tyre & Tubes of Your Vehicle making the tyre unfit to use due to bulge in tyre, bursting of tyre, cut or damage to Tyre. The Company will reimburse you for the cost of replacing the damaged tyre (s) with a new equivalent or near equivalent tyre(s) of make-model and specification similar to the one being used in the Insured vehicle at the time of availing Car insurance/at the time of accident/damage to the tyre based on age and wear & tear .Labour charges towards removing & refitting of the tyre and charges towards wheel balancing will be payable as per the Policy terms.


Consequential loss, Depreciation, Wear & tear, Mechanical/ electrical breakdown, failures or breakages, Damage to tyres unless the motor car is damaged at the same time and any accidental loss or damage suffered while the person driving is under the influence of intoxicating liquor or drugs.