Tuesday, January 31, 2023


So many terms and conditions to peruse, so many policy papers to pry apart! If only there was some sort of insurance dictionary you could refer to every time you came across a word or term you didn’t know…

Well, now there is.

We’ve simplified the meanings of a list of common terms you will definitely come across when buying or renewing motor insurance.

1. Insured Declared Value (IDV)

Simply put, IDV is the current market value of your vehicle.

IDV refers to the highest sum payable by the insurer for a vehicle insurance policy.  It is thus the maximum amount you can claim in case of total loss of your vehicle, for instance if it gets stolen or damaged beyond repair.

Tip: Refrain from quoting an IDV lower than the actual market value of your car. Though you may think that would allow you to pay less premium, it may also result in you receiving inadequate compensation.


2. Own Damage Premium

This is the premium you pay to avail insurance cover equal to the IDV, and forms a major part of your total motor insurance premium.

ODP insures your vehicles against losses caused by events outside of your control. This includes natural disasters like earthquakes and tornadoes, as well as man-made calamities like fires and explosions.

Tip: The ODP differs according to the model, cubic capacity, geographical zones, etc. of the vehicle so make sure you specifically ask about it.

3. Zero Depreciation Cover

When you make a claim, standard insurance policies deduct depreciation on replaced parts. However, if you opt for a Zero Depreciation cover, insurance companies waive off depreciation on such replaced parts, which means that you get a higher claim amount.

Tip: This cover is generally only applicable for the first few claims. Thus, though it may demand a steeper premium, it’s advisable to opt for it given that the claim amount is considerably higher.

4. No Claim Bonus (NCB)

This is essentially the discount you become eligible for when you have not made a claim in the previous year- kind of like a reward for prudent use of your vehicle. This discount considerably lowers the insurance premium you need to pay when you’re renewing the policy.

Since the NCB discount amount can be quite large- starting* at 20% for the 2nd year and up to 50% for the 6th year, it’s worth refraining from registering a claim for minor damages, and instead holding out for the NCB.


Tip: The NCB can generally be transferred from one insurance company to the other but is only allowed if the policy is renewed within 90 days of the expiry of the previous policy, so make sure you claim it as soon as possible.

5. Third Party Cover

Third Party cover protects the vehicle owner against any financial liability as a result of death, physical injury or damage to the property of a third party. The term’ third party’ is used because the beneficiary of the policy is someone other than the two parties involved in the contract i.e. the vehicle owner and the insurance company.

A victim can thus file a third party cover claim against the owner of the vehicle, and the latter’s insurer will pay for this claim on their behalf.

Tip:  According to Indian Law, third party cover is mandatory when you’re buying a car, so do ensure that it’s a part of your contract with your insurer.

6. Personal Accident Cover

Beyond just your vehicle, Personal Accident Cover financially safeguards you against unforeseen events causing bodily harm, such as Accidental Death or Permanent Total Disability arising due to a road accident.

Over 1,37,000 people** were killed in road accidents in 2013 alone. India does hold the dubious distinction of most number of road accidents annually.

Tip: Not every motor insurance policy includes personal accident cover so it’s absolutely essential you make sure yours does.

The next time you’re buying or renewing your motor insurance, keep this simple glossary handy so you don’t feel cheated or played on.

Keep reading to learn more about motor insurance and buying insurance online.


** National Crime Records Bureau, Ministry of Road Transport & Highway, Law commission of India, Global status report on road safety 2013

With the rapidly increasing number of cars on the road, the likelihood of being in a car accident increases too. To mitigate the damage caused, it’s important you are well informed of the procedure to follow after such an event has occurred. Here is an illustration of – What to do after a car accident?
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Image credit : Tomorrowmakers

Summer vacations are boring. I end up sleeping all day. So one fine day when I was out in the market I happened to come across this really neat roll of Aluminium Mesh at a hardware store. Dimag ki batti jali and I thought to myself, I can use this to make a custom DIY Mesh Grill for the car. Went ahead and bought a piece of 1’x3′ since the width of the rolll was 3′. I think it cost around Rs.35 or something for a square foot and paid the money and left the shop.

Now time for the DIY. 

Tools Required:

1. Philips as well as flat head screwdriver.
2. 10mm and 12mm spanners although a T-spanner is always a boon.
3. Pliers
4. M seal
5. Cutter
6. Masking Tape
7. A thich piece of cloth to rest the bumper on when you take it off so that you don’t nick the paint.

My Tool Box.
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The Procedure:

1. Start by parking the car in a shaded place since you would have to meddle with the bumper a bit to get it off and also make sure the ground is dry because you will have to get underneath your car.

2. There are 4 screws op top, 2 in the front and around 4 on the underside. Also need to take off a few clip on the under side.

3. Once that is done, gently pull the bumper from the corners taking care not to break the clips which doing so. The clips are mainly near the headlight area.

4. Take the bumper to your workstation where the cloth is laid on the ground to place the bumper along with your tools.

5. The focus now shifts to the piece of mesh, I personally prefer the silver color since my car is a dark shade so I didn’t paint it. Keep the mesh on top of the portion to be covered and cut to size using a cutter.

Please do this with caution as the mesh has sharp edges.

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6. Once the mesh is cut to size, use your hands and fold them into the shape of the air dam careful not to cut yourself and also take care you don’t break it while bending.

7. I used M-Seal to hold the mesh in place rather than drilling holes in the bumper. The advantage of using M-seal is that the whole process is reversible with negligible evidence of any tinkering have been done.

8. The M-Seal, 2 packets was mixed and applied at the corners first and then along the length at required intervals. I used masking tape to hold the grill in place which the M-Seal hardens.

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9. Now that the M-Seal has hardened, peel of the tape, check for rigidity and carefully carry the bumper back to the car. Put it back in the reverse order of removing starting by pushing it into the holding clips at either ends near the headlight. This hols the bumper in place nice and tight to put all the other clips and screws back in place. It’s always better if you have someone around to help you remove and put the bumper back to save the paint surface from scratches.

10. Once it’s fixed, look at your DIY and feel awesome. It was my first DIY and I sure felt super duper awesome.

Some pictures to show you how it will look.
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Pretty cool, right?

One parting shot and thank you for reading.
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