Protect your car or bike against accidents, theft, natural disasters, and fire damage with comprehensive vehicle insurance from Hemang Corporate. Get instant policy issuance and hassle-free claims.
Own damage cover, the core component of comprehensive vehicle insurance, protects your vehicle against physical damage from accidents, theft, fire, natural disasters, vandalism, and transit-related damage. Unlike third-party insurance which only covers damages you cause to others, own damage cover ensures your own vehicle's repair or replacement costs are covered.
As per IRDAI regulations, a comprehensive motor insurance policy consists of three mandatory components: own damage cover, third-party liability cover, and personal accident cover for the owner-driver. At Hemang Corporate, we help you structure all three components optimally across 20+ insurer partners, ensuring you never overpay for coverage you do not need while never being underinsured.
Insured Declared Value (IDV) is the maximum amount your insurer will pay if your vehicle is stolen or declared a total loss. IDV is calculated as the manufacturer's listed selling price minus depreciation. Understanding IDV is crucial because it directly impacts both your premium and your claim payout.
Consider this scenario: Mr. Sharma bought a Honda City in 2022 for Rs 15 lakhs. In 2026, when renewing his comprehensive insurance, his insurer calculates IDV as follows: for a 4-year-old car, depreciation is 40% as per IRDAI's depreciation schedule. So IDV = Rs 15,00,000 - (40% of Rs 15,00,000) = Rs 9,00,000. His annual premium for own damage cover is approximately Rs 12,000 based on this IDV.
If Mr. Sharma's car is stolen in 2026, he will receive Rs 9,00,000 from the insurer. If he had opted for a lower IDV of Rs 7,00,000 to save on premium, he would have saved Rs 2,400 annually on premium but lost Rs 2,00,000 in claim payout. This trade-off is one of the most critical decisions in vehicle insurance, and Hemang Corporate's advisors help you strike the right balance between affordable premiums and adequate coverage.
The IRDAI mandates the following depreciation schedule for IDV calculation: 5% for vehicles up to 6 months old, 15% for 6 months to 1 year, 20% for 1 to 2 years, 30% for 2 to 3 years, 40% for 3 to 4 years, and 50% for 4 to 5 years. For vehicles older than 5 years, IDV is mutually agreed between the insurer and policyholder based on vehicle condition assessment.
When you file a claim for vehicle repairs, the insurer applies depreciation on replaced parts before calculating the final payout. This is where policyholders often face unexpected out-of-pocket expenses. IRDAI's standard depreciation rates for vehicle parts are as follows:
The zero depreciation add-on, also called Nil Depreciation cover, eliminates all these deductions. For a car like a Hyundai Creta, replacing four alloy wheels and tyres after an accident could cost Rs 60,000. Without zero dep cover, you would pay Rs 30,000 out of pocket (50% depreciation). With zero dep cover, the insurer pays the full Rs 60,000. This add-on typically costs 15-20% extra on the own damage premium but is highly recommended for vehicles under 5 years old.
When you opt for a cashless claim at a network garage, the insurer directly settles the bill with the garage. You pay only the compulsory deductible (typically Rs 1,000 to Rs 2,500 per claim) plus any depreciation if you don't have zero dep cover. Network garages offer standardized labour rates and genuine parts, ensuring quality repairs. Our partner insurers have combined networks of over 5,200 garages across India, including 180+ in Gujarat alone.
For non-network garages, you pay the bill upfront and file a reimbursement claim. Our fast claim assistance team ensures reimbursement claims are processed within 7-10 working days through doorstep document pickup.
Choosing between comprehensive and third-party insurance is one of the most common dilemmas for vehicle owners. Here is an objective comparison to help you decide.
Comprehensive Car Insurance (for a typical hatchback worth Rs 6 lakhs): Annual premium ~Rs 12,000-18,000. Covers own vehicle damage, theft, fire, natural disasters, third-party liability (unlimited bodily injury + Rs 7.5 lakhs property), and personal accident cover of Rs 15 lakhs. Add-ons available: zero dep, engine protect, roadside assistance.
Third-Party Only Car Insurance (same vehicle): Annual premium ~Rs 2,500-4,000 at IRDAI-set rates. Covers only third-party bodily injury (unlimited), third-party property damage (up to Rs 7.5 lakhs), and mandatory personal accident cover for owner-driver. Does NOT cover any damage to your own vehicle.
A real-world example: In September 2025, a Maruti Swift owner in Rajkot with only third-party insurance suffered Rs 45,000 in front-end damage from a collision. The other party's insurance covered their vehicle, but the Swift owner had to pay Rs 45,000 from his own pocket. If he had comprehensive cover with zero dep add-on, he would have paid just the Rs 1,000 deductible. This single incident illustrates why comprehensive insurance, while costing more upfront, protects against unpredictable repair expenses that can be financially crippling.
IRDAI allows insurers to offer several add-ons that enhance your base comprehensive policy. Here are the most beneficial ones for Indian vehicle owners.
As discussed earlier, this eliminates depreciation deduction on replaced parts. Recommended for vehicles up to 5 years old and luxury cars where spare parts are expensive. Adds 15-20% to own damage premium.
Covers engine damage due to water ingression, oil leakage, or hydrostatic lock. Essential for vehicles in flood-prone areas. Gujarat's 2023 and 2024 floods saw thousands of engine damage claims rejected for lack of this cover. Premium: Rs 500-1,500 per year.
24/7 emergency support including flat tyre change, battery jump-start, fuel delivery, locksmith service, and towing up to 50 km. Most insurers offer this as an add-on for Rs 300-500 per year.
If your vehicle is stolen or declared a total loss within 3-5 years of purchase, this add-on covers the difference between IDV and the original invoice value. For a Rs 10 lakh car with Rs 6 lakh IDV after 4 years, this means Rs 4 lakhs extra payout in case of theft.
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Get comprehensive vehicle damage protection from Hemang Corporate. Compare policies from 20+ insurance providers and choose the best plan for your car or bike.
Get Free QuoteIDV is calculated as the manufacturer's listed selling price minus depreciation. For vehicles up to 5 years, depreciation ranges from 5% to 40%. For vehicles older than 5 years, IDV is mutually agreed between insurer and policyholder. Higher IDV means higher premium but better claim payout.
As per IRDAI regulations, rubber and plastic parts depreciate at 50%, fiberglass at 30%, glass at 0%, and painted metal parts at the vehicle's age-based depreciation rate. A zero-depreciation add-on cover waives these deductions, providing 100% part replacement cost.
Standard comprehensive policies do not automatically cover engine damage due to water flooding. You need a separate engine protector add-on cover. This is especially important for vehicles in flood-prone areas like Gujarat, Maharashtra, and coastal regions.
Yes, but it is financially unwise to claim for minor repairs under Rs 5,000-10,000 because claiming reduces your No Claim Bonus (NCB) by up to 50% at renewal. Paying out-of-pocket for minor repairs and preserving your NCB saves more money long-term.
If repair costs exceed 75% of the IDV, the insurer declares the vehicle a total loss. You receive the full IDV amount as settlement. The salvage (damaged vehicle) becomes the insurer's property. For theft claims, insurers typically settle within 7 days after the investigation period ends.