Vehicle Insurance Certificate: Everything You Need to Know About it

Author: Jeo George•Published on: 12/23/2025•7 Minutes
Overview:In the interest of your personal and your vehicle's safety, a car insurance policy can be a mighty saviour in times of distress. Whether in the event of an unfortunate accident or an incidence of car theft, a valid vehicle insurance will save you from all types of unexpected losses – mental, physical and financial. Under the Motor Vehicles Act, 1988, carrying a valid insurance policy is mandatory every time you take your vehicle out for a drive, or even if it is parked in your garage unused. Given its immense significance in vehicle ownership, we provide you with all the details you should know about a vehicle insurance policy, including its key elements, types, process for obtaining it, costs involved, and other crucial factors.
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Key Highlights:


  • A vehicle insurance certificate ensures the safety of the vehicle, its owner, and occupants in the event of an accident.
  • There are primarily two types of insurance: Third-party cover and comprehensive cover.
  • A vehicle insurance policy can be purchased online on the insurance company's website, through third-party portals, or offline at a point of sale, such as an insurance company's branch or a vehicle dealership.

What is a Vehicle Insurance Certificate?


An official document made mandatory by the government for vehicles, an insurance policy is issued by an insurance company or an authorised dealership in a tie-up with the insurance company to safeguard the safety of both you and your vehicle. It is legal evidence that your car is protected against any unwarranted losses to it or its occupants or people affected by it in the event of a mishap, such as an accident, natural calamity or theft.


Types of Vehicle Insurance


Primarily, there are two types of vehicle insurance policies people can avail themselves of for their vehicles:


Third-Party Liability Insurance: This is a policy that covers the legal and financial liabilities of individuals who are injured or killed in an accident caused by your vehicle. A mandatory insurance policy that one has to buy for his/her car under the Motor Vehicles Act, 1988, this policy does not cover the damages caused to your vehicle in case of a mishap.


Comprehensive Insurance: This policy covers all damages caused to your vehicle (commonly known as own damage), along with all the elements of a third-party insurance policy. With comprehensive insurance, you are ensured of more extensive protection against uncertainties such as accidents, theft, and natural calamities, including fire, floods, or earthquakes.


Details Included in a Vehicle Insurance


The following are the details mentioned in an insurance certificate:


  • Details of the policyholder/vehicle owner: Name, address and contact number.
  • Details of the insurance company: Name, address and contact number.
  • Details of the vehicle: Registration number, car make and model, engine number, chassis number and fuel type.
  • IDV: Insurance Depreciation Value, which is essentially the current value of your vehicle, determined based on various factors.
  • Policy number: A unique number issued by the insurance company.
  • Type of insurance coverage: Only a third-party insurance policy or a comprehensive insurance policy.
  • Add-ons: Additional services purchased above the third-party or comprehensive cover.
  • Period of insurance: The duration for which the insurance policy is valid.
  • Premium of insurance: The amount paid for the insurance policy.
  • Terms and conditions: The terms and conditions under which the insurance policy is valid or ineffective.

How to Get a Vehicle Insurance Certificate? A Step-by-Step Process


You can purchase a vehicle insurance policy for your vehicle through two modes: offline and online. The following are the processes to avail a car insurance policy through both modes:


Buying a Vehicle Insurance Policy Offline


  • Step 1: Visit the preferred branch of the insurance company, an authorised agent, or the authorised dealership for your vehicle.
  • Step 2: Provide all your details, including those from a government-authorised identity card, along with the vehicle's registration certificate details.
  • Step 3: Choose the type of insurance cover you want (third-party or comprehensive), along with the add-ons you want to make it more effective and wholesome
  • Step 4: Pay the premium to the insurance provider through the available modes of payment – cash, debit/credit cards, online transfer, cheque, or UPI.
  • Step 5: Once the payment is confirmed, the insurance provider will provide you with a physical copy of the vehicle's insurance policy, along with a digital copy emailed to you.

Buying a Vehicle Insurance Policy Online


  • Step 1: Visit the official website of the insurance company or an authorised third-party application or website that offers the insurance company's services.
  • Step 2: Submit your personal and vehicle details as requested in the required tabs, along with a soft copy of the required documents, such as the vehicle RC and a government-authorised identity card.
  • Step 3: Select the type of insurance cover you want (third-party or comprehensive), along with the add-ons you wish to, which are mentioned on the screen.
  • Step 4: Pay the premium online through modes of payment available, which usually include net transfer, IMPS, UPI or debit/credit cards.
  • Step 5: Download the insurance policy generated on your device, and store it in a government-authorised portal, such as mParivahan or DigiLocker.

Add-Ons of a Vehicle Insurance Policy


In recent years, the increased complexities and uncertainties related to vehicle safety have led to specific changes and evolutions in vehicle insurance policies, often in the form of add-ons. These add-ons offer additional services and benefits beyond those of the own damage and third-party covers when availing of the insurance. The following are some of the most common add-ons preferred by car owners:


Zero Depreciation Cover: Often proper in case of vehicle thefts or expensive repairs, this cover ensures that you get a complete claim for the parts affected in case of an accident, without factoring in the effect of depreciation.


Roadside Assistance Cover: It offers additional assistance in the form of towing services, prompt repairs, or replacements of parts in case of a vehicle breakdown or uncertainties, such as a flat tyre.


Engine and Transmission Cover: It covers all damages caused to the engine and transmission's mechanical and electronic components in case of uncertainties, such as accidents and natural calamities.


Return-to-Invoice Cover: It ensures that the vehicle owner is paid the original invoice value of the car, rather than its current market value, in the event of a total loss or theft of the vehicle.


Consumables Cover: It covers the costs of consumable items, such as lubricants and nuts and bolts, which are often charged in the final bill during the insurance settlement.


No Claim Bonus Protection: It ensures the protection of NCB (no claim bonus) even if you file for a claim in the course of an insurance policy.


Personal Accident Cover: It provides financial compensation for injuries or the death of the owner or occupants in the event of an accident.


Tyre and Rim Cover: It protects the damage caused to your vehicle's tyres and wheels in the event of an accident or excessive use on rough or poor roads.


Key Replacement Cover: It ensures that you receive a replacement for a stolen or lost car key without incurring any additional costs.


FAQs


1. What is a vehicle insurance certificate?

The vehicle insurance certificate is a legal document under the Motor Vehicles Act, 1988, which ensures your safety and that of your vehicle, as well as compensation in case of a mishap, such as an accident, natural calamity, or theft.


2. What is bumper-to-bumper insurance?

Also known as Zero Depreciation Insurance, this type of insurance covers all kinds of damage to the external and internal components of a vehicle, without requiring any additional payment (barring insurance filing charges).


3. What is IDV in insurance?

Insurance Depreciation Value (IDV) is the current value of your vehicle, based on its yearly depreciation and damages caused to it during the previous course of insurance.