Motor insurance is a mandatory requirement if have a car, motorcycle or scooter. You will have to pay a fine and have your vehicle registration certificate (RC) or driving license (DL) confiscated by the police, if you are driving without a valid motor insurance or a motor insurance policy that has expired.

There are two types of motor insurance - third party insurance and comprehensive insurance. Third party insurance is mandatory for all vehicle owners in India. Third-party insurance will cover your liability towards damages incurred by the third party in case an accident happens with your vehicle. It won't cover damages to your vehicle. Comprehensive motor insurance provides your vehicle complete end-to-end protection against damage caused by accidents or natural disasters like floods etc.

Motor insurance premium depends on the price of the car (in case of a brand new car) or the Insurance Declared Value (IDV) of a car that has completed more than 1 year. Motor insurance is usually valid for a year; you must renew or get a new motor insurance policy before expiry of your current motor insurance. Some motor insurance policies can cover you for multiple years.