This Mykaka car insurance guide explains car insurance the way a car owner actually needs it – what your policy pays for, what it quietly does not pay for, and what to do on the worst day, when the car is damaged and the claim process begins. Most owners only read their policy after an accident. Read this guide before that day and you will already know the steps.
The Two Parts of Every Car Policy
Every car insurance policy in India has a compulsory third-party part. It covers injury or death caused to other people and damage to their property by your car, and driving without it is illegal. The second part, own-damage cover, is optional but practical – it pays for damage to your own car from accidents, fire, flood, falling objects, and theft, based on the car’s insured value. A comprehensive policy combines both parts in one document. A third-party-only policy is cheaper but leaves your own car’s repair bill entirely on you.
IDV – The Number Your Claim Depends On
IDV, Insured Declared Value, is the current market value of your car for insurance purposes, calculated from its price minus age-based depreciation. If the car is stolen or damaged beyond repair, the insurer pays up to the IDV, never more. Choosing a very low IDV to save premium is a trap – the saving is small, and the claim ceiling drops with it. Choose an IDV close to the car’s real market value.
Zero Depreciation and Other Useful Add-ons
Standard policies deduct depreciation on replaced parts – plastic, rubber and fiber parts can lose a large share of their value in the calculation, so you pay the rest from your pocket. A zero depreciation add-on removes that deduction for covered parts, so the insurer pays the full approved part cost. It costs extra and usually has age and claim-count limits, but for a new car it is one of the most useful add-ons. Other common add-ons are engine protection, roadside assistance, and consumables cover. Buy add-ons by need, not by the length of the list – each one raises the premium.
No Claim Bonus – Your Discount for Safe Years
For every claim-free year, you earn a No Claim Bonus on the own-damage premium, and it grows year by year up to a limit set in the policy. It belongs to you, not the car, so it can be transferred when you change cars or insurers. Protect it: paying a small repair yourself is sometimes cheaper than losing years of bonus through one small claim. And never make a false no-claim declaration when switching insurers – it can void the claim later.
What Decides the Premium?
The car’s price and IDV, its age, engine capacity, fuel type, your city, and the add-ons you choose all decide the premium. The third-party part is fixed by the regulator, so when comparing insurers, compare the own-damage terms, IDV, add-ons and claim support – not only the final price. The cheapest policy with a low IDV and slow claim service is rarely the best buy.
Car Insurance Claim Process – Step by Step
Step 1: After an accident, check that everyone is safe. For injury, theft, or major third-party damage, inform the police and get the FIR or report copy as applicable.
Step 2: Inform your insurer immediately and register the claim through the helpline, app or website. Note the claim number.
Step 3: Do not start repairs before the survey if the insurer asks for one. A surveyor inspects the damage and approves the repair estimate.
Step 4: Repair at a network garage is usually cashless – you pay only the deductions and non-covered parts. At other garages, pay first and claim reimbursement with bills.
Step 5: Submit the documents asked for – claim form, policy copy, driving licence, registration certificate, FIR copy where applicable, repair bills and photos.
Step 6: After approval, the insurer settles with the garage or reimburses you, as per the policy terms.
Common Reasons Claims Get Delayed or Rejected
Driving without a valid licence, using a private car for commercial work without the right policy, delayed claim intimation, repairs started without required survey, and wrong information in the proposal form are the usual causes. All of them are avoidable with honest details and quick intimation.
Frequently Asked Questions About Car Insurance
Question: Is comprehensive car insurance compulsory?
Answer: No. Only third-party cover is compulsory by law. Own-damage cover is optional, but without it you pay your own car’s repair or theft loss yourself.
Question: What is the difference between IDV and market value?
Answer: IDV is the insured value fixed in your policy using a depreciation formula. It is close to market value but is the exact ceiling your claim will follow.
Question: Does zero depreciation cover everything at claim time?
Answer: No. It removes the depreciation deduction on covered parts, but deductibles, non-covered parts and policy limits still apply. Read the add-on wording carefully.
Question: Can I change my insurer at renewal and keep my No Claim Bonus?
Answer: Yes. The bonus is yours and transfers with proof from the previous insurer, as long as you declare your claim history honestly.
Question: Should I claim for every small dent?
Answer: Compare the repair cost with the bonus you will lose. For small amounts, paying yourself often saves more over the next years of renewal.
Conclusion
Good car insurance is a combination – the right IDV, add-ons chosen by need, an honest proposal form, and knowing the claim steps before an accident happens. Keep the policy active, drive the renewal comparison by claim quality and not only price, and keep your documents ready. For other insurance and loan topics explained simply, return to the main Mykaka guide and continue reading.
Note: This Mykaka guide is for general information and education only. Premiums, limits and claim conditions differ by insurer and policy – please confirm the final details in the official policy wording and with the insurer or IRDAI before buying or claiming.