Motor Insurance in India: IRDAI-Registered Insurers, Registration Norms, Buying Criteria, and Claim Process

📅 09 Jan 2026 📂 General 👁 13 views

Motor insurance in India is a regulated financial product covering third-party legal liability (mandatory by law) and optionally own-damage (vehicle repair/replacement) plus add-ons. For a reliable purchase and smooth claims, you must understand:

Which companies can legally sell motor insurance (IRDAI-registered general insurers).
How insurers are registered and what key regulatory norms apply.
How to buy motor insurance on correct grounds (coverage design, IDV, add-ons, compliance).
How to claim (cashless vs reimbursement), required documents, timelines, and common rejection reasons.

1) Who can sell Motor Insurance in India?

Motor insurance is primarily offered by General Insurance Companies (Non-life insurers) registered with IRDAI. The authoritative list is published by IRDAI under “List of General Insurers”.

Note: “Standalone Health Insurers” generally do not sell motor insurance (they are licensed for health line). Motor insurance is a general insurance line.

2) General Insurers Operating in India (official IRDAI reference)

IRDAI publishes a full updated list including addresses and websites.
Below is a practical subset of widely-used motor insurers (verify current status on IRDAI before onboarding or integration):


+----+-----------------------------------------------+-------------------------------+
| #  | IRDAI-Listed General Insurer (subset)          | Typical motor products        |
+----+-----------------------------------------------+-------------------------------+
| 1  | The New India Assurance Co. Ltd.               | Car/Bike TP & Comprehensive   |
| 2  | United India Insurance Co. Ltd.                | Car/Bike TP & Comprehensive   |
| 3  | National Insurance Co. Ltd.                    | Car/Bike TP & Comprehensive   |
| 4  | The Oriental Insurance Co. Ltd.                | Car/Bike TP & Comprehensive   |
| 5  | ICICI Lombard General Insurance Co. Ltd.       | Car/Bike + add-ons            |
| 6  | HDFC ERGO General Insurance Co. Ltd.           | Car/Bike + add-ons            |
| 7  | Tata AIG General Insurance Co. Ltd.            | Car/Bike + add-ons            |
| 8  | Bajaj Allianz General Insurance Co. Ltd.       | Car/Bike + add-ons            |
| 9  | IFFCO Tokio General Insurance Co. Ltd.         | Car/Bike + add-ons            |
| 10 | Reliance General Insurance Co. Ltd.            | Car/Bike + add-ons            |
| 11 | SBI General Insurance Co. Ltd.                 | Car/Bike + add-ons            |
| 12 | Acko General Insurance Ltd.                    | Digital-first motor insurance |
+----+-----------------------------------------------+-------------------------------+

Authoritative source for the complete list: IRDAI “List of General Insurers”.

3) How insurers are registered in India (IRDAI registration norms)

3.1 Registration framework (high level)

General insurers operate only after obtaining an IRDAI Certificate of Registration. The governing framework includes IRDAI (Registration of Indian Insurance Companies) Regulations, 2000 (with amendments/updates).

3.2 What “IRDAI-registered insurer” practically means (for buyers/admins)

From an operations/compliance perspective:

The insurer is legally allowed to underwrite motor insurance risk.
The insurer must follow IRDAI rules on policy issuance, claim handling, grievance, and consumer protection.
The insurer appears on IRDAI’s “registered entities” list and is subject to regulatory reporting.

4) Legal and regulatory norms for Motor Insurance (must-know)

4.1 Third-party insurance is mandatory

Under Section 146 of the Motor Vehicles Act, 1988, vehicles plying on Indian roads must have insurance covering third-party risk.

4.2 Claim settlement timelines (general IRDAI norm)

IRDAI specifies that the insurer should settle or reject a claim within 30 days from receipt of the last necessary document; if investigation is required, timelines extend with conditions (e.g., settle/reject within 45 days), and interest may apply for delays as defined.

In practice, motor claims also involve survey/assessment; delays often happen due to document gaps, late intimation, or workshop coordination.

5) Motor insurance types and technical coverage components

5.1 Policy types

Third-Party (TP) Only
Covers legal liability to third parties (injury/death/property damage). Mandatory for road use.
Comprehensive / Package Policy
Includes TP + Own Damage (OD) (damage/theft to your vehicle).
Standalone Own Damage (OD)
OD cover when TP is purchased separately (availability depends on insurer product rules).

5.2 Important technical terms (what to check before buying)

IDV (Insured Declared Value): Approximate vehicle value used for total loss/theft payout calculation.
NCB (No Claim Bonus): Discount linked to claim-free renewals (policy-specific rules).
Deductible: Portion you pay before insurer pays (compulsory + voluntary).
Add-ons (common):
- Zero Depreciation (bumper-to-bumper)
- Engine Protect (water ingress/hydrostatic lock—conditions apply)
- Consumables cover
- Return to Invoice (RTI)
- Roadside Assistance (RSA)

6) Use cases

Individuals

New car/bike purchase (mandatory TP + recommended OD)
Vehicle theft / total loss
Accident damage repairs with cashless garage
Flood/water damage (engine protect add-on becomes critical)

Fleet / business operations

Company vehicles and delivery fleet insurance
Centralized policy tracking, renewals, and claims SOP
Integration with repair vendors and document controls

7) Step-by-step: How to buy Motor Insurance (implementation workflow)

Step 1 — Define compliance baseline

Ensure TP insurance is active (mandatory).
Confirm vehicle documents are valid:
- RC
- Driving License (for authorized drivers)
- PUC certificate
- Fitness/permit (commercial vehicles)

Step 2 — Validate insurer legitimacy (hard control)

Check insurer on IRDAI “List of General Insurers”.

Step 3 — Choose policy type and coverage “grounds”

Pick based on risk:

High usage / new vehicle / financed vehicle → Comprehensive + key add-ons
Old vehicle / low usage → TP + OD based on cost-benefit
Flood-prone area → Engine protect + zero dep (if eligible)
Business fleet → Higher liability focus + standardized deductibles

Step 4 — Configure pricing & coverage

Select IDV (don’t understate excessively—affects claims)
Choose deductibles (voluntary only if you can absorb repair costs)
Add-ons according to exposure (engine protect, zero dep, RTI)
Verify driver details and usage category (private vs commercial)

Step 5 — Issue policy and store “policy asset pack”


/MotorInsurance/
  /Vehicle-<RegNo>-<Year>/
    PolicySchedule.pdf
    PolicyWording.pdf
    ProposalForm.pdf
    AddOns.pdf
    RC.pdf
    DL-Drivers/
    PUC.pdf
    Claims/
    RenewalReceipts/

8) How to claim Motor Insurance (Own Damage vs Third Party)

8.1 Own Damage (OD) claim — Cashless (network garage)

Best for: Accident repairs at insurer’s network garage.

Workflow

Intimate claim to insurer/app/call center immediately (as per policy conditions).
Take vehicle to network garage (or request towing via RSA if included).
Garage/insurer arranges survey and estimate approval.
Repairs completed; insurer pays admissible amount directly to garage.
You pay:
- Deductibles
- Non-payable items (policy exclusions / uncovered consumables if add-on not present)
- Betterment/ depreciation (if zero dep not included or not applicable)

8.2 Own Damage (OD) claim — Reimbursement

Best for: Non-network garage or when you paid first.

Workflow

Intimate claim and complete survey requirement.
Repair and pay bills.
Submit claim form + documents.
Insurer processes and pays to your bank account.
Claim should be settled/rejected within IRDAI timelines from last necessary document (with investigation rules where applicable).

8.3 Third-party (TP) claims

TP claims generally involve legal liability and are typically processed through:

MACT (Motor Accident Claims Tribunal) or legal processes, depending on case type and jurisdiction.
Your insurer provides defense/settlement as per policy and legal requirements.

Practical note: For TP matters, document quality (FIR, accident details, witness, police papers) and legal process drive timelines more than workshop workflow.

9) Claim document checklist (field-ready)

OD accident repairs

Claim form / claim intimation reference
RC copy
Driving license of driver at time of accident
FIR (if required by severity / policy terms / theft / major incidents)
Photos of damage and accident spot (recommended)
Repair estimate and final invoice (itemized)
Payment receipts (reimbursement)
Bank details/cancelled cheque (reimbursement)

Theft / total loss

FIR + final police report as required
RC, keys (as asked), insurer forms
Loan NOC (if financed)
Claim forms and KYC

Example: Internal claim tracker JSON


{
  "vehicleRegNo": "PBXXYY1234",
  "policyNo": "MOTOR-XXXX",
  "claimType": "own_damage_cashless",
  "intimationDate": "2026-01-09",
  "garage": { "name": "Network Garage A", "cashless": true },
  "documents": [
    { "name": "RC", "status": "received" },
    { "name": "Driving License", "status": "received" },
    { "name": "Photos", "status": "received" },
    { "name": "Estimate", "status": "received" },
    { "name": "FIR", "status": "not_required" }
  ],
  "status": "survey_pending"
}

10) Common issues & fixes (motor claims)

Issue A — Claim denied due to invalid fitness/permit (esp. commercial vehicles)

Cause: Policy terms + legal compliance issues (fitness/permit expired).
Fix: Maintain a compliance checklist and renewal reminders for fitness/permit/PUC before policy renewal and before vehicle usage.

Issue B — Driving license invalid / wrong vehicle class

Cause: DL expired, incorrect category, or unauthorized driver.
Fix: Keep a driver register and DL validity checks (monthly/quarterly audit for fleets).

Issue C — Delayed claim intimation

Cause: Late reporting breaches policy condition; survey becomes difficult.
Fix: Create a standard “accident SOP” card in the vehicle with helpline and steps.

Issue D — Water ingress/engine damage not covered

Cause: Engine damage often needs engine protect add-on and strict condition compliance.
Fix: Buy engine protect if exposure exists; follow insurer instructions (do not restart after flooding).

Issue E — High out-of-pocket due to depreciation/consumables

Cause: No zero-dep/consumables add-on, or add-on not applicable due to age/conditions.
Fix: Align add-ons with vehicle age and usage; confirm add-on eligibility before purchase.

11) Security considerations (data + fraud controls)

Motor insurance workflows involve:

Personal data: name, address, phone, ID proofs
Vehicle data: RC, chassis/engine number
Financial data: bank details for reimbursement
Claims evidence: photos, location, police papers

Controls

Store documents in encrypted folders (BitLocker/FileVault/encrypted cloud vault).
Share documents only via insurer portal/official email.
Mask sensitive IDs where not required.
Maintain access control for fleet/HR/admin teams and keep an audit log of document access.

12) Best practices

For individuals

Always keep TP active (legal requirement).
Keep a “vehicle compliance kit”: RC, DL, insurance, PUC, emergency contacts
Choose add-ons based on real exposure (zero dep, engine protect, RSA)
Take clear photos after an accident before moving vehicle (safe to do so)

For businesses / fleets

Maintain a master register: vehicle, policy, insurer, expiry, IDV, add-ons, driver mapping
Implement SOP for accident response + claim intimation
Quarterly compliance audit: DL validity, permits, fitness, PUC
Verify insurer legitimacy from IRDAI list during vendor onboarding

Conclusion

Motor insurance in India is a compliance-driven product where success is mostly operational:

Buy only from IRDAI-registered general insurers.
Ensure third-party cover is active (mandatory by law).
Build claims readiness: correct documents, quick intimation, and proper add-ons.
Track claim settlement norms and document submission dates; IRDAI timelines reference settlement/rejection within 30 days from last necessary document (with investigation scenarios).

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