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LIC Product and Forms
General Insurance >> Motor Insurance

As per the Motor Vehicles Act, all vehicles that ply in the public place should possess the compulsory third party insurance cover.

Risk Covered
Own damage
Third party liability
Vehicles Covered Under Insurance
Private car
Motor cycle
Commercial vehicles goods carrying
Passenger carrying vehicles
Ambulances, bulldozers, road rollers

Sum insured in Motor Policy is also known as Insured Declared Value (IDV).

Sum insured under Motor Policy is different as it represents per Accident Limit and not per Policy Limit. Eg:A Maruti 800 which is insured for Rs 1.40 Lakhs, can have several claims cumulatively greater than Rs 1.4Lakhs. Re - instatement of Sum insured by pro - rata payment of premium need not be done.

Vintage Car

Any car manufactured prior to 31-12-1940 and duly certified by the Vintage and Classic Car Club of India can be considered a Vintage car for the purpose of this tariff.

Discount allowed is 25% on Own Damage Premium.

Valued Policy

Under an Agreed Value Policy a specified sum agreed as the insured value of the vehicle is paid as compensation in case of Total Loss / Constructive Total Loss of the vehicle without any deduction for depreciation.

It is not permitted to issue Agreed Value Policies under this tariff excepting for policies covering vintage cars.

Classic Car

Any car manufactured after 31-12-1940, but before 31-12-1970, is considered as a Classic Car by the Vintage and Classic Car Club of India. There is however, no provision for special rating or cover for such vehicles under this tariff.

Imported Vehicles

Policies issued to cover imported vehicles belonging to Embassies, Consulates etc. where the 'import duty' element is not included in the IDV the premium chargeable under Section – I (loss of or damage to the vehicle insured) of the policy shall be loaded by 30%.


The insured is entitled for a No Claim Bonus (NCB) on the Own Damage section of the policy, if no claim is made or pending during the preceding year(s), as per the following:

Period of insurance % of NCB on OD premium
The preceding year 20%
Preceding Two consecutive years 25%
Preceding Three consecutive years 35%
Preceding Four consecutive years 45%
Preceding Five consecutive years 50%
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Auto Association Discount

Members of valid Auto Association will get a discount of 5% of the OD premium subject to a maximum of Rs.200 for private cars and Rs.50 for Motor cycles.

Discount For Anti Theft Devices

Discount for Anti theft devices are provided if certified by ARAI of 2.5% of the OD premium subject to a maximum of Rs. 500 on Own Damage Component.

Use Of Vehicles Within Insured's Premises

Vehicles confined to own premises are available for a discount of 33.33% on the applicable Tariff rate. Use confined to own premises’ shall mean use only on insured’s premises to which public have no general right of access.

Compulsory Deductibles

Claims under Own Damage section of policies covering all classes of  vehicles are subject to a compulsory deductible.

Private car not greater than 1500 cc - Rs 500
Private car greater than 1500 cc - Rs 1000
Motorized two wheeler - Rs 50
Electrical / electronic fittings

If electrical and or electronic items fitted to the vehicle but not included in the manufacturer’s selling price of the vehicle are to be insured, it can be done separately under Section - I (loss of or damage to the vehicle insured) of the package policy at an additional premium @ 4% on the value of such fittings. Electrical and electronic fittings include:

Electric horns

Air conditioner
CD player etc
Use of CNG / LPG Fuel

In case of vehicles fitted with bi-fuel system such as Petrol / Diesel and CNG / LPG, permitted by the concerned RTA, the CNG / LPG kit fitted to the vehicle is to be insured separately at an additional premium @ 4% on the value of such kit.

An additional premium of RS. 60/- per vehicle to be charged towards liability Only cover on account of CNG / LPG system.

Fiber Glass Fuel Tanks

All policies covering vehicles fitted with fiber glass fuel tanks will attract an additional premium of Rs. 50/- in the Own Damage section excepting vehicles ratable under class D of Commercial Vehicles Tariff where the additional premium will be Rs. 100/-.

Handicapped And Mentally Challenged Person

In case of vehicles specially designed / modified for use of blind, handicapped and mentally challenged persons, a discount of 50% may be allowed on the Own Damage premium in respect of both privately owned vehicles.

Private Cars

Perils covered

Explosion / lightning / self Ignition.
Social Perils: RSMTD
Act of God Perils
STFI / landslide / rockslide / earthquake
Covers loss arising during transit of vehicle from one location to the other
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