Plain-language definitions of common motor-insurance and claims terms used across this site.
Core terms
- IDV (Insured Declared Value) — the maximum amount payable if your vehicle is a total loss or stolen; broadly the vehicle’s current market value as fixed at policy issue.
- NCB (No Claim Bonus) — a discount on your own-damage premium for each claim-free policy year, rising in slabs up to 50%.
- Own Damage (OD) cover — the part of a policy that pays for damage to your own vehicle.
- Third-Party (TP) liability — legally mandatory cover for injury or damage you cause to others; it does not cover your own vehicle.
- Comprehensive policy — OD cover plus third-party liability in one policy.
- Deductible / excess — the amount you bear yourself on a claim; includes a compulsory deductible and any voluntary deductible you choose.
- Depreciation — the reduction applied to parts/vehicle value with age; affects how much a claim pays unless a zero-depreciation add-on applies.
- Zero-depreciation add-on — an add-on that limits depreciation deductions on parts during a claim.
- Surveyor — the licensed assessor who inspects damage and estimates the admissible claim amount.
- Discharge voucher — the document you sign to accept the settlement amount; signing under protest preserves your right to dispute.
- FIR (First Information Report) — the police report often required for theft, third-party injury or major-accident claims.
- MACT (Motor Accident Claims Tribunal) — the forum that decides compensation claims arising from motor-accident injury or death.
Educational information only — not legal or financial advice.
