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Important Components of Your Comprehensive Car Insurance Policy Wordings


Written by Sharad Bajaj

Updated Oct 14, 2023

While purchasing a car insurance plan and while raising a claim, you should go through some important sections of your insurance plan. Here are a few Important Sections of your comprehensive car insurance policy wording.

Every car insurance policy document holds specific terms and conditions, failing to adhere which would result in the rejection of the claim request at the end. Hence, everyone needs to do in-depth research with which they can make an informed decision before buying a car insurance plan by going through the insurance policy wordings. It will help you buy a car insurance plan that suits your requirements. With this approach, at the time of an accident or mishap, you can easily raise a claim as per the terms and conditions which can be honoured by the insurer.

Where to Find the Policy Wordings?

Due to the technological advancement and to encourage customer-friendliness, almost all the car insurance companies are making the policy wording of their insurance plan available online. The insurers offer two options to customers which comprise car insurance online and car insurance offline. To sell car insurance online, insurance providers hold a website to provide detailed information about their insurance products and offerings as well as policy wordings under the downloads section. However, when it comes to offline insurance, you can also get the policy wording of any insurance plan by visiting the branch office of your insurance provider.

Important Sections to Read in Comprehensive Car Insurance Policy Wordings

1. Liabilities To Third Parties

The third-party car insurance cover is the mandatory aspect of the policy wording as the Indian Motor Tariff makes it compulsory to be owned by all the car owners. This insurance plan is designed to secure you against financial liabilities that you may incur towards a third party for their injuries, death and property damages. You should go through the inclusion and exclusion components of the third party liability in your policy document.

2. Loss or Damage To The Car Insured

The section of own-damage coverage is an essential aspect of comprehensive car insurance. The complete details about the own-damage are clearly stated in the policy wording under this particular section. You must check as if the incident that caused damage to your car is covered by your policy or not while making a claim. Raising a claim without verification can lead your claim request to get rejected by the insurer if the event is not covered under the policy.

3. Sum Insured – Insured’s Declared Value

Under this section you can get the Insured Declared Value (IDV) of your car which can be considered as the market value of the insured car as well as the sum insured of the policy. It is fixed at the commencement of the policy term and based on different aspects such as the listed selling price of the make, model, etc. The section also guides you the schedule of depreciation as per which the IDV will be adjusted. Besides, the component defines how IDV will be treated in different situations like total loss, constructive total loss, etc.

4. Personal Accident Cover

In most of the policy wordings, this section contains a table that explains the nature of the covered injuries and the scale of compensation provided to the owner-driver. Every car insurance policyholder must go through this component to prevent any type of confusion about the amount of claim offered and kind of injuries covered under the insurance policy.

Nature of Injury

Scale of Compensation



Loss of two limbs or sight of two eyes or one limb and sight of one eye.


Loss of one limb or sight of one eye


Permanent total disablement from injuries other than named above.


5. General Exceptions

This section of the policy wording presents the general exceptions of the insurance policy subject to all the components of the policy wording. The policyholders should keep the elements of this section in mind before making any claim request as the insurer will not be covering such requests and the car insurance claim would be rejected. Some common exclusions of different insurance companies include accidental loss or damage sustained by the car outside the geographical area, damage or loss arising from nuclear weapons material, claims arising due to any contractual liability, and so on.

6. Grievance Redressal

If you feel dissatisfied with the claim process or you may have queries related to claim amount and so on. To resolve such queries of customers, the insurance companies display their phone number, email id, and branch address in the contact section in the policy wordings to make customers reach them for resolving their issues. If they are unable to resolve your issue, you can connect with the grievance officer of the insurance company, the contact of which is available in the policy wordings. If you are unsatisfied even then, then you can reach out to the Insurance Ombudsman.

Also Read

Steps To Make A Car Insurance Claim After An Accident

How To Get Most Affordable Car Insurance Policy?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.


Written by Sharad Bajaj

Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. Read More


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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