HDFC ERGO Commercial Vehicle Insurance

Comprehensive risk coverage for your commercial vehicles

HDFC ERGO Commercial Vehicle Insurance

All You Need to know

Features and Benefits

Protecting and maintaining commercial vehicles is critical to ensure that daily operations within your business run smoothly. The insurance policy provides coverage for any accidental losses or legal liabilities involving your commercial vehicles. Here are some of the features of the policy:

You will get some exclusive features and benefits with your HDFC Bank Commercial Vehicle Insurance:

  • Large network:Cashless Claim Service over 3400+ authorized network of garages across India.
  • Types of vehicles covered:HDFC ERGO provides covers to various classes of commercial vehicles such as goods carrying vehicles - both private and public carriers, trailers, passenger carrying vehicles, miscellaneous & special types of vehicles.
  • Customer support:Avail of comprehensive customer support through the HDFC ERGO’s 24x7 toll free helpline number, along with a simple claims procedure.

Click here to download the brochure.


Here are the details regarding the coverage that the HDFC ERGO Commercial Vehicles Insurance policy offers:

Loss or damage caused to the vehicle insured by any one of the following events:

  • Accident by external means
  • Burglary, house break-ins or theft
  • Fire, explosion, self ignition, lightning
  • Terrorism, riots, strikes, malicious acts
  • Transit by road, rail, inland waterways, air or lift
  • Earthquake, flood, storm, landslide or rockslide

Liability to Third Parties: 
The policy covers you for the legal liability for injury / death and/or property damage caused to a third party in the event of an accident caused by or arising out of the use of the insured vehicle.

Personal Accident Cover For Owner-Driver:
The policy provides personal accident cover for the owner driver for accidental death or permanent total disability.

Sum Insured: 
The coverage for your vehicle would depend on the manufacturer's listed selling price, less depreciation for each year or the Insured’s Declared Value (IDV). The IDVThe Insured Declared Value is the maximum 'Sum Insured' fixed by the insurer which is provided on the Insurer's Maximum Liability in the event of an own damage claim. It is the current market value of the vehicle which is calculated as per the manufacturer's listed selling price less the depreciation. Registration and insurance costs are excluded from IDV. would be the maximum amount payable in the event of an own damageclaim for total loss / constructive total loss.

The premium for a package Motor Insurance policy could depend on:

  • Sum insured / Insured's Declared Value (IDV)
  • Type of vehicle
  • Age of the vehicle
  • Place and type of registration
  • Gross Vehicle Weight (GVW) / Licensed Carrying Capacity (LCC) as applicable

You can also choose a variety of optional covers on payment of additional premium, as listed below:

  • Electrical / non-electrical items can be insured separately
  • Personal accident cover for paid driver / employee
  • Legal liability for paid driver/ employee in connection with the operation of the insured vehicle
  • Legal liability to fare / non-fare paying passengers
  • Cover for lamps tyres / tubes mudguards bonnet / side parts bumpers headlights and paintwork of the damaged portion only
  • Use of commercial type vehicles for both commercial and private purposes
  • Cover for Overturning applicable for Miscellaneous Type of Vehicles

Click here to read the policy wording.


The following are the exclusions on the policy that you should note:

  • General aging, wear and tear
  • Damage by a driver without a valid driving license
  • Mechanical or electrical breakdown, failure
  • Damage by a person driving under the influence of liquor / alcohol / drugs
  • Depreciation, any consequential loss
  • Loss / damage attributable to war / mutiny / nuclear risks
  • Damage to tyres / tubes, unless damaged in an accident
  • Loss / damage, outside India
  • Damage caused by overloading or strain of the insured vehicle
  • Damage to any bridge and/or via duct and/or to any road and/or anything beneath by vibration or by the weight of the insured vehicle and/or load carried by the insured vehicle

Please Note:

* This content is descriptive only. Actual coverage is subject to the language of policy issued.

** These are illustrative exclusions. For a detailed list, kindly refer to the policy wordings.

Please note that HDFC Bank is a corporate agent of HDFC ERGO. The Contract of insurance is between HDFC ERGO and the Insured only and HDFC Bank is not a party to the said contract. Participation by customer to buy insurance policy is purely voluntary. Insurance is the subject matter of the solicitation. For more details on coverage, terms and conditions, please read the policy document carefully before conducting a sale.

Claims Procedure

In case of any event leading to a claim under the policy, you need call HDFC ERGO’s toll free customer care number 1800-2-700-700. Our claims service representative will guide you on the claim procedure is and the required documents. Here is the basic procedure you will have to follow:

  • Provide your policy number as reference to register the claim
  • Request for help with towing / ambulance services (If required) and claim formalities.
  • Get a repair estimate, fill up the claim form and attach a copy of the Registration Certificate and license of the driver at the time of the accident.
  • You can avail of the 'Cashless Claims' facility in a garage within our network. However, if the garage is outside the purview of our network, you would have to get the claim reimbursed subsequently
  • You will have to pay for non-accident related repairs, depreciation and a small deductible.
  • Lastly, you will have to sign the repairer’s satisfaction voucher

The Claim form and other documents related to the nature of loss can be collected from you by HDFC ERGO personnel. Alternatively, you may send them to our Claims Processing Cell at the following address:

HDFC ERGO General Insurance Company Limited

6th Floor, Leela Business Park,

Andheri Kurla Road,

Andheri - East, Mumbai- 400 059, India

The documents required to successfully complete your claims procedure are as follows:

In case of an accident:

  • Duly filled and signed claim form
  • Registration Certificate (RC)
  • Driving license of the person driving at the time of the accident
  • Policy copy
  • Original repair estimate, repair invoice and payment receipt for non-cashless claims
  • Original repair invoice for cashless claims
  • The additional documents will be required for commercial vehicles:
  • Load challan
  • Fitness certificate
  • Route permit
  • Copy of FIR (First Information Report) lodged at the nearest police station
  • Spot survey (within 6 hours)

In case of a theft:

  • Duly filled and signed claim form
  • Registration Certificate (RC)
  • Original policy copy
  • Copy of FIR (First Information Report) lodged at the nearest police station
  • All original keys
  • No trace report' confirming that the stolen vehicle is not traceable

In case of a Legal Liability Claim:

  • Duly filled and signed claim form
  • Registration Certificate (RC)
  • Driving license of the person driving at the time of the accident
  • Original policy copy
  • Copy of FIR (First Information Report) lodged at the nearest police station
  • Legal notice, if any
  • Vakalatnama – authorising us to handle the case on your behalf

To download the claim form, Click here


Please note that HDFC Bank is a corporate agent of HDFC ERGO. The Contract of insurance is between HDFC ERGO and the Insured only and HDFC Bank is not a party to the said contract. Participation by customer to buy insurance policy is purely voluntary. Insurance is the subject matter of the solicitation. For more details on coverage, terms and conditions, please read the policy document carefully before conducting a sale.

Certified Corporate Agent's License No. CA0010

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Got your Welcome Kit? Inside it you will find:

  • A policy document
  • Policy Wordings: to help you understand what is covered under the policy

Did you know?

  • You can avail a cashless claim service from a network of over 3400+ authorized garages across India
  • You can avail emergency assistance services such as towing, ambulance and claims assistance
  • You can get comprehensive support through HDFC ERGO’s 24x7 toll free helpline number

You may also benefit from:

  • A Private Car Insurance policy that ensures that your vehicle is safeguarded no matter what the mishap
  • A Health Suraksha Policy that provides you optimal coverage for treatment, including all pre and post hospitalization costs, medical check-ups, cumulative bonus, minimum out-of-pocket expenses etc
  • A Critical Illness Plan that is designed specifically to cover the high costs of critical illness treatments and is the best way to safeguard your savings, as it pays a lump sum amount on the very first diagnosis.


Why do I need car insurance? 
Car insurance is a mandatory in India. Moreover, you need a protection shield for your priced possession so that any financial loss/damage is covered as a consequence of accident. In case of such incident you damage is taken care by the insurance company.

Do I need to have a valid insurance policy to get my new vehicle registered? 
Yes, you need to valid car insurance policy for registration of your vehicle. Even a TP (third-party) car insurance policy will also help in same at RTO.

In case of my job and place change, what happens to my motor policy? 
The policy will remain more or less the same, but the premium may change depending on the city to which you are moving. This is because the insurance rates differ based on the registration zone of the car. Metro cities usually have a higher rate of premium than the rest of the country. In case of job change, just inform the insurer so that the details are updated. In any case, you need to update your contact details i.e. your new address and phone number, which can be done online.

What happens to the 4 wheeler insurance policy, if I sell my car? 
The insurance policy has to be transferred from your name to the new owner. Supporting documents like sale deed/form 29/30/NOC of seller/NCB recovery amount are required for this. However, you can transfer the No Claim Bonus accumulated in your policy to your name which can be used for your new vehicle. You also have the option to cancel the existing policy at the time of selling.

How do I get a copy of my car insurance policy online? Will the printout of the softcopy serve as the original document? 
Visit the official website of the insurance company and select the option to download an e-copy of your policy. Once you enter your policy number and registered mobile number, an OTP will be sent to that number for verification. Enter the OTP and provide your registered email ID. A copy of your car insurance policy will be sent to your mail ID in PDF format. You can then download the policy.

According to the Ministry of Road Transport and Highways, even a digital copy of documents such as driving license and a vehicle’s registration, insurance etc., which are stored in Digilocker or mParivahan mobile app, will now be accepted legally along with the actual physical documents. Original papers or photocopies of the same are no longer mandatory.

Am I eligible for a car insurance discount if I install anti-theft alarm and locking system?

What is bumper to bumper car insurance? 
Bumper to bumper is an add-on cover providing complete coverage, in case of an unfortunate event, to damages done to fibre, metal, and rubber parts of your car. This, however, does not cover engine damage, batteries, tyres and glass. Pay additional premium to purchase this add-on. It is also known as zero depreciation or nil depreciation car insurance.

How can I change/modify my car insurance policy details? 
You have to connect with HDFC ERGO toll free no or Log in to our website and take the self help option for the changes to be done in your policy If required you need to submit proof for the required changes. There are some endorsements that may require you to provide an additional premium.

Does HDFC ERGO resolve claims beyond city limits? 
During intimation to HDFC when filing for the claim, you must have the following 3 documents ready for reference:

• RC book
• Driving license
• Policy number along with policy copy

At the time of an accident, take down the number of the other car involved and try to take sufficient pictures and Video of the accident spot with the vehicle and objects involved. This step will help you to explain the incident while claiming and also in case you want to file an FIR in the police station.

Once you have taken these initial steps, just relax, take it easy and give a call on the HDFC ERGO Customer Care number-18002700700or simply log on to WWW.HDFCERGO.COM to register your claim. Post claim Intimation you will receive the Claim Number via SMS and in case of Call Center Intimation the executive on call will provide you with the reference claim number. In the event of theft of the insured vehicle, the company will hire a private investigator to track the same and for this purpose all associated documents will be collected from the police. In this case, the claim settlement process may take up to 60 days.

What is the meaning of Depreciation in car insurance? 
Most assets like our cars, see wear and tear over a period of usage. This causes a dip in the total value of the asset. This is called depreciation. It happens quickly with cars and despite the best insurance plans, you tend to get lesser coverage on claims, year-on-year. If this disheartens you, then you might want to invest in a zero depreciation policy.

Zero Depreciation insurance means that despite the value of your car going down with time, you get complete coverage on expenses incurred in case of damage. Have a relevant zero dep car insurance plan, or simply top up your comprehensive car insurance plan with the bumper-to-bumper HDFC ERGO add-on!

Once the inspection request is logged online, how long does it take to get the car policy? 
It depends on the insurer. You may get it in a day or two, or the process can take a week.

Am I eligible for a discount if I am a member of Automobile Association of India?  
Yes. Most car insurance companies in India offer decent discounts on the premium if the policyholder is a member of Automotive Research Association of India (ARAI).

What are electrical and non-electrical accessories? How do you calculate their value? 
Electrical accessories in a car usually include music system, ACs, lights, etc. The non-electrical accessories are the interior fittings in the car, like seat covers and alloy wheels. Their value is calculated according to their initial market value and then the depreciation rate is applied.

What is the meaning of the phrase ‘legal liability of the paid driver’? 
It means that if the car owner has hired a driver and if the latter meets with an accident while driving your car, then the insurance company will provide compensation for his injury/ loss of life.

Where can I view the list of cashless garages in my city? 
Usually, the list is available on the insurer’s website. You can also check with your insurance agent or call the customer care number if you can’t locate it.  

What is an ARAI-approved car-theft device? What are the benefits of installing the same? 
Ranging from high-end locks to alarms, anti-theft devices are gadgets that protect your car. You need to get one certified by the Automotive Research Association of India (ARAI) if you wish to avail the anti-theft discount on the car insurance premium.

How much fine do I have to pay in case I do not have car Insurance? 
As per the Motor Vehicles Act 2019, the fine for driving without insurance is Rs 2,000 and/or imprisonment of up to 3 months for the first time. For subsequent offence, the penalty is Rs 4,000 and/or jail term of up to 3 months.

What are the different types of Motor or Car Insurance Policies and what does it cover? 
The different types of car insurance plans are:

Liability only policy: The Indian Motor Vehicles Act, 1988, makes it is compulsory for car owners to have a valid third-party insurance policy, and non-compliance of the rule can lead to heavy penalties. This policy covers bodily injury (or death) or property damages done to any third party in case of an accident caused by the insured party, on the condition that it wasn’t a deliberate act or done under the influence of any drugs or alcohol.

Comprehensive plan: Buying this policy is optional, but it is highly recommended by experts. It covers damage done to your own vehicle as well as that done to a third-party. Apart from accidents, it also covers thefts and damages done to the vehicle by natural calamities like flood, lightning, earthquakes, etc. or malicious acts like riots, strikes, and terrorist activity. This plan can be bought for a single year or for long term.

Standalone Own Damage Car Insurance: This offers exclusive protection to your car that may get damaged due to accidents, calamities, fire or loss due to theft. It doesn’t cover treatment for injuries of the driver, or any damage done to the third-party, unlike a comprehensive plan.  
Other plans are also available depending upon the type of car i.e. Private Car Insurance and Commercial Vehicle Insurance.

Benefits of renewing from the same insurer?
If you didn’t make a claim during the policy period, you get No Claim Bonus. Apart from a discount on your insurance premium, your insurer is most likely to offer additional benefits when you renew the policy. These rewards might include a sizeable decrease in deductibles or an accident forgiveness option, which means zero increase in premium even after an accident.

My motor insurance policy expired; how can I renew in case of break-in of my policy? 
It is simple to renew your car insurance online. All you have to do is visit the website of the insurer, make a self-survey of your car, and upload the required documents. Once the documents are approved, a payment link would be sent. After the payment is done, your policy will be renewed.

What is an endorsement? What is premium and non-premium bearing endorsement? 
If you want to make any changes to your existing policy, it can be done through an endorsement. The modifications/changes are not made in the original policy but in the Endorsement certificate. These might include change in ownership, coverage, vehicle, etc. Endorsements are of 2 types - premium-bearing endorsement and non-premium bearing endorsement.

In premium-bearing endorsement, you have to pay an additional premium. For example, transfer of ownership, addition of LPG/ CNG kit, change of RTO location, etc. On the other hand, if you opt for non-premium bearing endorsement, no additional premium is charged. For example, change in contact details, correction in engine/ chassis number, addition of hypothecation, etc.

What is loading/ loading period in a policy? 
If you have witnessed a significant rise in the insurance premium during renewal, it might be because of loading. Simply put, it is the amount that is added to a policy to cover for losses which were higher than what the insurer was anticipating. This comes into the picture if the policyholder is prone to a certain type of risk or opts for claims quite often. Loading protects insurance companies against high-risk individuals.

Is my NCB transferable when I change my car or insurer?
Yes. The reward for not making a claim during the policy period can be easily transferred from one insurer to another if the policyholder decides to buy insurance from another insurance company. Similarly, if the car owner changes his vehicle, NCB can be transferred to the new car. To transfer the NCB, you need to request the insurance company to issue you an NCB certificate. This certificate denotes the amount of NCB that you are eligible for and also becomes proof of NCB transfer.

Will I require car insurance for my electric car? 
Yes, electric car owners are required covering their priced possession with a valid car insurance.

Is comprehensive car insurance is mandatory? 
No, Comprehensive car insurance is not mandatory but third party car insurance is mandatory. It will be always advisable to choose comprehensive over third party as you can get a 360 degree protection to your car.

Can I buy add on covers with Third party car insurance? 
No, you cannot buy any add on covers with third party car insurance. But you can buy several add on if you purchase comprehensive car insurance.

Does zero depreciation add-on cover provide coverage to every part of my car? 
Except for tyres and tubes, Zero depreciation provides coverage to every part of your car.

What is the meaning of No claim bonus? 
No Claim bonus is the reward your insurance company will give you for not filing a claim in the previous policy period and maintaining your car. NCB is applicable only from the second policy year. This no claim bonus discount ranges from 20%-50%. For example, Mr. Sharma pays an insurance premium of Rs. 20,000 for his car, of which Rs. 18,000 is the own damage component, and he has not made any insurance claim for 5 consecutive years, he becomes eligible for a discount of up to 50% or Rs. 9,000

What is Zero depreciation? 
Zero depreciation is an add-on cover that is available with comprehensive car insurance policies. As the value of the car depreciates with time, in the case of a claim, the depreciated cost of the parts repaired or replaced is paid by the insurance company. This is because depreciation is not covered and so, the insurer excludes the cost of depreciation. However, if the zero depreciation add-on is added, the cost of depreciation is not excluded. The insurance company considers depreciation to be zero and covers the full cost of the claim.

What is NCB Retention Cover?
This add-on cover retains your No Claim Bonus even after you have raised a claim for damage caused to your parked vehicle due to external impact or any calamity such as flood, fire etc. This cover not only protects your NCB earned so far, but also takes it to the next NCB slab. It can be claimed for a maximum of 3 times during the policy per.

What is Nil Depreciation? 
Nil Depreciation, also known as Zero Depreciation Cover, gives complete coverage without any depreciation. It is an add-on cover that can be opted for while buying car insurance online. Under this add-on, the insurance company pays the full amount of the parts that are being replaced or repaired. No depreciation is deducted from these parts. 

If I have LPG or CNG kit fitted in the car, but it’s not endorsed in the RC book, will it be covered in the policy?/ If I fit CNG or LPG kit in my car, is it necessary to inform the Insurance Company? 
No, it will not be covered, because the information on your insurance policy must match the details of the car when making a claim. When you switch to LPG or CNG, the fuel type of your car changes, and hence, your claim request can get rejected. Therefore, you must inform the insurer about this change at the earliest

If I purchase new accessories for my car, can I get them insured in the middle of the insurance policy term? 
Yes, you can get the coverage. For that, you would have to inform the insurance company about the addition of the accessories to your car. The insurance company would charge an additional premium to cover the accessories on a pro-rated basis. Pay the premium and you can get coverage for the accessories from the middle of the term.

How will a Zero Depreciation Cover help you in car insurance? 
As the car ages, its value depreciates. Zero Depreciation Cover is an add-on cover that provides complete coverage to your car without considering the depreciation value. In the event of any damage, the entire claim amount will be paid by the insurer. Without this add-on, the insurer pays the compensation after deducting the depreciation amount which has to be borne by you. You need to pay an additional premium to purchase this add-on

What do you mean by Constructive Total Loss? 
The Insured Declared Value (IDV) is the maximum amount of sum assured fixed by the insurance company, according to the present market value of the vehicle. Sometimes, the overall repair cost exceeds 75% of the vehicle’s IDV,and then, the insured car is treated as a Constructive Total Loss claim.

What is Road Side Assistance? When should I opt for the Road Side Assistance service? 
Roadside assistance is an add-on cover that comes to your rescue when you are stranded on the road in case of a mechanical breakdown. This has to be purchased by paying additional premium. One can avail 24*7 road side assistance for breakdown, tyre replacement, towing, fuel replacement etc. by contacting the customer care.

What is deduction for depreciation?
Unless you have a Zero Depreciation cover, the insurer pays for the repair or replacement of car parts at a depreciated value. The value of the car and its partsbecomes lower as the years go by. This ‘deduction for depreciation’ decides how much the policyholder pays from his/her pocket.

What if the car insurance policy expires? 
If your car insurance expires you will have to face the following:  

● Financial loss in case of accidents-Accidents can happen anytime and anywhere which may amount to a huge sum as your car insurance has expired. To repair the damages, you will have to break your savings and pay for it as your car insurance has already expired.

● Loss of Insurance Protection–Car Insurance policy provides you wide coverages, which can protect you in case of any car related emergency. If you allow your insurance policy to expire, you risk losing the benefits of the insurance cover and you might have to pay from your own pocket for the repairs before buying a new car insurance policy.

● Driving with Expired Insurance is Illegal - Driving without valid car insurance is a criminal offence in India under the Motor Vehicles Act and can attract a penalty of up to Rs. 2000 or imprisonment for up to 3 months. Now, that’s unwanted trouble you are inviting upon you.

How can I check my policy renewal payment status? 
Following are the ways in which you can check the status of your car insurance policy renewal online:

Option 1: Insurance Information Bureau

One way to check the status of your insurance policy online is through the website of IIB (Insurance Information Bureau). The steps to do this are as follows:

• STEP 1: Visit the IIB website.
• STEP 2: Enter the details of your vehicle.
• STEP 3: Click the “SUBMIT” button.
• STEP 4: View the policy details.
• STEP 5: If you are unable to view any information, try to search by the vehicle engine number or the vehicle chassis number.

Option 2: VAHAN E-services

The alternative to IIB when checking the status of your car insurance policy is to check through VAHAN e-services. Here are the steps to do so:

• STEP 1: Visit the VAHAN e-services web page.
• STEP 2: Click on “Know Your Vehicle”.
• STEP 3: Enter the vehicle registration number, as well as the verification code.
• STEP 4: Click on the “Search Vehicle” button.
• STEP 5: View the insurance expiry date and other vehicle details.

What are the benefits of timely policy renewal? 
Following are the benefits of Car insurance renewal

Third party liabilities

If your car is involved in an accident that results in damage or loss to the property of any third parties, it is covered under the car insurance. Furthermore, if you face any legal liabilities in case of any bodily injury or death of a third party, your car insurance protects you against the same.

No claim bonus

One of the major advantages of having car insurance is the no claim bonus (NCB). Customer is eligible for this benefit for every claim-free year. This may be available as a discount on the premium, which makes car insurance even more affordable.

Damage or loss to insured vehicle

In case your vehicle is damaged due to an accident, fire, or self ignition, you are protected. Furthermore, if the car suffers losses due to burglary or theft, strikes, riots, or terrorism, your insurance policy covers these. Another benefit of car insurance is that it covers loss or damage while in transit by rail, inland waterways, air, road, or lift.

Personal accident cover

Another advantage of car insurance is that it offers personal accident cover for a pre-determined amount. Personal Accident cover provides protection against permanent total disability, Death due to an accident. Furthermore, this cover can be taken for other passengers on unnamed basis (maximum as per the vehicle’s seating capacity) for a pre-determined amount under the car insurance pol

Can I choose not to claim if the damage is minimal? What do I gain out of it? 
When a policyholder doesn’t make any claims during the policy period, he/she is rewarded with a No Claim Bonus (NCB). Now, this discount can range from 20% upto 50%, depending upon your track record of not making a claim. While making a claim for massive damages serves the whole purpose of taking insurance, if you let go of small damages, you can avail a decent discount in the form of NCB. So, it’s advisable to pay for minor repairs instead of making a claim and losing that NCB, which by the way, only increases with every passing year.

How can I cancel my claim? 
There are times when drivers wish to cancel a claim, mostly because they don’t want to pay the deductible. So, insurance providers allow you to cancel a claim after you file it, and to do so, you just need to contact a representative.

If I lodge my claim after the vehicle insurance policy expires for the event that occurred during the policy term, will the claim be valid? 
Usually, if you suffer a claim during the policy term, it is admissible. However, if you delay in making the claim and your policy expires, the insurer might reject the claim. That is why it is recommended that you inform the insurer immediately in the case of a claim. When you do so, the claim gets registered during the policy tenure. Then, you can get the settlement even after the policy expires. Moreover, the car insurance renewal should be on time to ensure that you get the claim settlement even if you report the claim after the policy tenure expires.

How many times can we claim car insurance in a year? 
There is no limit to the number of claims that one can register during the policy period. However, the policyholder can claim until the consolidated claim amount reaches up to the Insured Declared Value (IDV) of the car. Also, claims have an impact on your premium at the time of renewal.

What is voluntary deductible? 
Voluntary Deductible is a part of the claim that the insured party volunteers to pay from their own pocket, before raising the claim with the insurance provider. It is an excellent way to reduce your policy premium. For example, say your car is damaged and the total claim amount is Rs. 10,000. But you have agreed to shell out Rs. 2,000 from your own pocket as a voluntary deductible. So, once you pay that, the balance amount of Rs. 8,000 will be paid by the insurer. However, remember that there is also a compulsory deductible portion in your car insurance policy. This is the amount that you have to compulsorily pay in each instance of a claim. If you choose a voluntary deductible, you would have to pay both the compulsory and voluntary deductible from your pocket before the insurer pays the rest of the claim. For instance, in the aforementioned example, if there is a compulsory deductible of Rs.1000 and you choose a voluntary deductible of Rs.2000, you would have to pay Rs.3000 from your pocket. The remaining Rs.7000 would be paid by the insurer.
If you choose a voluntary deductible for reducing the premium, keep in mind the out-of-pocket expense in the case of a claim. If you do not make frequent claims and get higher savings through premium reduction by choosing the voluntary deductible, you can choose the deductible and save on the premium.